Teachers’ union gets little support for new tax plan

Wednesday, March 21, 2001 | 9:43 a.m.

CARSON CITY -- Stymied once, the teachers' union has revived plans for a tax on business profits, but it admits it has no support so far from state legislators.

Ken Lange, executive director of the 23,000-member Nevada State Education Association, said he is appalled by the lack of leadership in the Legislature this session as it relates to funneling money into public schools.

"It's time for somebody to stand up for kids," Lange told a news conference Tuesday.

The plan ran into immediate opposition -- as has been the case in the past -- from the Las Vegas Chamber of Commerce and other businesses. Kami Dempsey, a spokeswoman for the coalition of businesses, said the proposal was riddled with holes, as was the last petition. She called it a Band-Aid approach and said there needs to be a study into whether the tax structure should be overhauled.

Dempsey said the state needs a 10-year plan, not one that could mean additional taxes would be sought every two years.

Gov. Kenny Guinn has not seen the proposal, although a spokesman said the governor has said he would not support a tax increase unless it has the approval of those affected.

Guinn has also opposed targeting funds for a specific program.

Dempsey also criticized earmarking funds for education, saying there has been no determination where the greatest need lies.

But Lange said the new plan removes many of the objections previously voiced by business. If other taxes are raised, the rate of the business tax would be dropped. Those businesses that earned less than $50,000 in profits would not have to file a return, and there would be no tax on estates.

In an earlier attempt at taxing business, the union gathered more than 60,000 signatures on an initiative petition to impose a 4 percent business tax and presented it to the Legislature. But the Nevada Supreme Court ruled the petition was invalid, leaving the union to develop another proposal.

The new plan calls for a 5 percent tax on business profits, above $50,000, with 80 percent going to public schools and the remaining 20 percent set aside for general government. Lange estimated the education share would be about $250 million a year.

Of the $250 million, about $112 million would go toward raising the pay of teachers to bring the base salary of a new teacher to $30,000 by the end of the biennium. Lange said starting salaries in Clark County were slightly more than $26,000, and competing states were offering more.

"If we don't offer the salaries, we're not going to get the teachers," he said.

Calling the situation "appalling," Lange said "we could be 500 short" in Clark County.

The union's plan calls for:

* About $22.5 million a year to provide three extra days of training for teachers.

* $25 million annually for mentors and master teachers.

* $24 million to provide one classroom in 50 percent of the schools for disruptive students.

* $34 million, or $100 per student, for textbooks, supplies and materials.

Lange said a textbook for a high school student costs about $60, and the rest would be used for supplies.

Another $25.5 million a year would be set aside to buy computers and software and provide training, as well as $6.5 million a year for activities such as remedial education, measuring student achievement and parental involvement.

Danny Thompson, executive director of the Nevada AFL-CIO, said he also was concerned about the lack of leadership in the Legislature regarding the issue. He said the problem would become unmanageable unless something is done this session. He called on lawmakers to develop an answer to effectively funding education.