Editorial: Same old tired song in capital

Thursday, May 3, 2001 | 8:44 a.m.

On Tuesday it was estimated that state government will confront a $121.5 million shortfall in revenues in the coming two years. This means that legislators and Gov. Kenny Guinn will have to make some decisions fast regarding the state budget since there is just one month left before adjournment.

The governor's budget submitted to the Legislature already was pared down to the bone. So making any more cuts not only would be bad public policy, but it also could invite a public backlash, especially if further reductions are made to popular education programs.

Another option that's being considered would shift to the state the revenues that the county currently receives from its share of the motor vehicle privilege tax. The money would pay for higher teacher salaries, but the transfer would drain $65 million from the budgets of local governments in Clark County over the next two years. This rob-Peter-to-pay-Paul scheme would result in Clark County governments having to make drastic cuts to needed services. Besides, the legislation is inherently unfair since it exempts all of Nevada's rural counties. It also appears that urban Washoe County also may get an exemption, leaving just Clark County to absorb this blow.

Aside from budget-cutting proposals, some legislators are also looking at a temporary fix to cover the funding shortfall. For instance, existing taxes could be raised somewhat, such as the business activity tax or levies on cigarettes. As these Band-Aid alternatives are examined, legislators promise that during the interim, as they prepare for the next time the Legislature meets in 2003, they finally will fashion a tax structure that will sufficiently meet the needs of the state. But that's the same nonsense we've heard for years. "Trust us, we'll fix it later" not only has become tiresome, but it also is pathetic.

For two decades state policymakers have known that our existing tax structure is out of whack. The tax system doesn't provide for a steady stream of revenues, nor do the taxes raised adequately pay for the services that the state's residents require. Putting off for another session the issue of devising an equitable and sufficient tax policy may be politically expedient. But the governor and legislators should be embarrassed by their failure to provide leadership on this critical issue.