Guinn gives few details on how he’ll address future taxes

Erin Neff

Thursday, July 12, 2001 | 10:51 a.m.

With the state facing a $1 billion shortfall over the next eight years, Gov. Kenny Guinn told a business group Wednesday the state's various interests must work together to find a solution.

Prior to his speech to the Las Vegas Chamber of Commerce at the Stardust hotel-casino, Guinn said he cannot make any decisions on future taxes without the support of the business, gaming, education and mining communities.

He also said he did not expect to have a plan in place prior to the November 2002 election.

"My intention is to be part of an overall plan," Guinn said.

Previously, Guinn said he planned to introduce legislation on the first day of the 2003 session -- provided he wins re-election -- to address the state's flawed tax structure, which places Nevada in a shortfall despite a decade of record growth and cash flow.

"We all know that we need additional revenues," Guinn said in an interview. "It's my responsibility as a governor to make sure we've assessed where we've been."

In his 25 minute speech to 300 chamber members, Guinn spent the bulk of his time discussing "where we've been."

"If you're going to be any formidable leader ... you first analyze the spot you're standing on, how you got to that spot and how you're going to get off that spot, especially if it's a hot one," Guinn said.

During the 2001 Legislature, the chamber led efforts to sink a business-tax initiative brought by the teacher's union. When the state Supreme Court ruled the initiative petition was unconstitutional, the chamber's lobbyists spent the bulk of the time decrying most other tax proposals as short-sighted.

But as the session drew to a close the chamber pledged to be a part of any broad-based review of the state's funding needs in the interim.

Many in attendance Wednesday hoped Guinn would preview what type of taxes will be needed.

Instead the governor discussed his flat budgeting for 2001, re-arranging state programs to save money and privatizing certain insurance programs.

"I'm not saying we need that $1 billion today," Guinn said.

But Guinn also hinted that he has exhausted all of his efforts to find money without raising taxes.

"I've been criticized for not being a leader," Guinn said. "That person's right because I'm not his leader.

"I truly believe sometimes that leadership is not raising taxes," he added. "I think raising taxes is the easy way out."

The audience applauded after Guinn discussed the ways he has spent money wisely or trimmed the budget.

Guinn stressed that the state's tax plan is "not up to me to decide."

"We're going to determine what we want our state to look like," he said, referring to the various interests.

Guinn concluded his speech with comments about Southern Nevada's air-quality crisis. He urged the business community to join with local leaders to meet Environmental Protection Agency requirements.

"Don't run around with a D or an R on your head," Guinn said, refering to Democrats and Republicans. "I'm going to run around with a P on my head."

"That is not a P for Pete, that's a P for people," many thought Guinn said, referring to Pete Ernaut, his top adviser.

After hesitant chuckles spread through the room, Guinn said: "I guess that went over everyone's head."

Following his speech Guinn said he did not say "P for Pete" but had said "P for Pea."

When asked to explain that remark, Guinn said "Pea like p-e-a, not like pee-pee."

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