Tax proposal draws fire in Assembly

Erin Neff

Friday, March 30, 2001 | 11:17 a.m.

CARSON CITY -- A Las Vegas lobbyist asked an Assembly committee Thursday why state lawmakers want to take local government money and then tell cities and counties to raise taxes to make up for the loss.

"Why not do it directly?" asked Marvin Leavitt. "You have the ability."

Leavitt and 17 other local government officials testified against Assembly Bill 457 -- a measure that would take the percentage of the motor vehicle privilege tax currently given to local governments and use it to fund a 2 percent cost-of-living increase for teachers in each of two years.

AB457, sponsored by Bob Beers, R-Las Vegas, and David Goldwater, D-Las Vegas, also specifies that local governments can make up for the losses by raising property taxes. Local governments within Clark County estimate the loss of revenue at $65 million by the second year of the proposal.

"I'm not here to advocate that they in fact raise taxes," Beers said.

Instead, Beers said he thought most local governments could recoup the losses by looking internally at cost-saving methods similar to the state's fundamental review. which identified $50 million in savings.

Goldwater, who is the chairman the Assembly Taxation Committee, said he agreed to co-sponsor the bill because "it's a good, new idea" amid a legislative session in which no one seems willing to offer any solutions -- or their own sacrifices -- to solve severe education funding shortages.

"Everyone's in favor of education," Goldwater said. "We love kids, but when it comes to my money, it's not just no. It's hell no. No. No. No."

Debbie Cahill of the Nevada State Education Association testified on behalf of the bill because of serious problems in regard to recruiting and retaining classroom teachers with current starting salaries of $26,847.

"We are not hoping to raid the coffers," Cahill said. "The problem is we have a crisis in the state of Nevada, and we have to do something about it."

Leavitt also said the bill would require the state's five largest counties to pay for teachers' salaries statewide.

John Marvel, R-Battle Mountain, said the city of Carlin in Elko County is already facing deficits that would make it unable to raise property taxes to make up for the loss in revenue.

Beers suggested Elko County be amended out of the bill.

"If we take Elko out there will be only four counties to pay for the state," Marvel said. "Then we're right back to the fair share argument."

Mike Alastuey, Clark County assistant county manager, said the county cannot lose 5 percent of its general fund.

"If you're trying to avoid cuts in other areas, this is going to be another cut," Alastuey said.

Tom Grady of the Nevada League of Cities called the bill "a Band-Aid approach to a poor tax policy."

And Carole Vilardo of the Nevada Taxpayers Association said earmarking a change of any revenue for a specific function fails to solve the state's overall reliance on sales and gross gaming taxes.

Several local government representatives said their residents have already supported public safety, parks and transportation tax overrides, consequently leaving little room for public acceptance of a property tax increase.

After the hearing Goldwater said he hoped the bill would increase dialogue on education funding needs. Nevertheless, he offered no specifics on how the bill could be implemented.

"I think we generated lots of ideas," Goldwater said.