Democrats, business at odds over taxes

Wednesday, March 7, 2001 | 11:36 a.m.

CARSON CITY -- After a 90-minute closed-door meeting, Assembly Democratic leaders and lobbyists for big business failed to reach any agreement on how the state will handle a shortfall of close to $100 million in tax revenues over the next two years.

Assembly Speaker Richard Perkins, D-Henderson, called the meeting a "frank discussion" and said, "Nobody suggested any new taxes." He added, however, that the needs of the state "are not going away' in such areas as education, mental health and programs for the disabled.

The only apparent answers are to raise taxes or to cut programs. And the Democrats are not ready to suggest either.

"There was nothing close to consensus," said Greg Ferraro, a lobbyist for the gaming industry. Pat Shalmy, of the Las Vegas Chamber of Commerce, said, "Different parties said different things." Billy Vassiliadis, representing business interests, said this was the first time the competing interests got together to talk about the problems.

Ferraro said the legislators talked more and the lobbyists listened.

Perkins said the meeting was closed to the press so the lobbyists could speak their minds.

It's clear the Democrats wanted some suggestions from business on how to handle the budget problems. And they've been miffed that the business lobbyists have been meeting with GOP Gov. Kenny Guinn and not Democrats. There were no Republicans at the Tuesday meeting.

Perkins said the meeting helped business lobbyists realize that the state would be short in its revenue by $30 million at the end of this fiscal year and that translates into $60 million or more in the following two years.

Perkins said there is a concern that "our tax structure is broken" and that it doesn't deal with growth and other issues.

"If we don't find some solution, there will be another initiative," said Perkins, referring to the failed initiative petition sought by the teachers union to impose a tax on business profits in excess of $50,000 for money for the public schools.