Revenue plan expected to move quickly

Friday, May 25, 2001 | 10:54 a.m.

CARSON CITY -- The new revenue plan to raise an estimated $35 million a year to provide pay raises for school teachers received mixed reviews after it was unveiled by Gov. Kenny Guinn and Sen. Mark James Thursday.

Still, the legislation is expected to move quickly through the Senate.

James, R-Las Vegas, said he plans to hear testimony in his Judiciary Committee today, then send Senate Bill 577 to the Senate floor.

But Assembly Speaker Richard Perkins, D-Henderson, said his first reaction was a "tad skeptical" to the proposal that increases transaction fees charged by the secretary of state and takes an estimated $14 million away from auto rental companies.

"I'm not sure how we do anything for the teachers with that amount of money. I'm not convinced we have done enough yet," Perkins said.

Ken Lange, executive director of the Nevada State Education Association, didn't endorse the plan immediately. The teachers union wants a 2 percent raise each year and $27 million for the "insurance crisis." That will cost $157 million.

He said this does not provide a long-term solution to problems with education funding in Nevada. After the session he said the union would "look at all options," including reviving a petition for a tax on business profits.

Those who do business with Secretary of State Dean Heller would face higher costs. Guinn called that a "cost of doing business" fee. Heller would collect more on new corporate filings, initial lists, certificates, mergers, amendments, trademarks, reinstatements and expedite fees.

For example, a fee of $75 for filing a certificate to change the number of shares would increase to $150. For late filings, the penalty would go from $15 to $50.

Part of the plan would affect auto-rental companies. Ten years ago the state imposed a 6 percent tax on anybody who rented a car. The rental companies were allowed to keep 4 of that 6 percent to offset higher vehicle registration costs in Nevada. The other 2 percent went to the state.

Under the Guinn-James plan, the state would collect the entire 6 percent. That is part of a bill already in the Assembly.

Bob Ostrovsky, representing Hertz Corp., said, "It's a done deal," signifying that the rental companies will lose the near $18 million a year. He said only the 13 major companies are affected, as the legislation allows firms to keep $100,000.

He said he is trying to soften the blow by phasing in the take-back by the state or asking that rental companies be allowed to charge other fees.

Under the Guinn-James plan, teachers would get a 3 percent bonus this year and a 2 percent raise next year.

Guinn had originally set aside $57.5 million in his budget for a 5 percent bonus. But he is moving part of that around to help pay for the raise and other programs.

Although the teachers are getting a bonus the first year, the governor said it would be treated as a pay raise in the next budget. Consequently, any raise would be built on a higher base.

Teachers who sign this year would get $2,000 bonuses, $2,500 the following year. Guinn said that costs $10 million.

It also allocates $25 million to help school districts, the state and the University and Community College System of Nevada meet the expected spike in fuel bills in the coming two years.

There also is $10 million to $15 million for activities in the various school districts so nothing gets cut such as art or athletics, the governor said.

"There is no deal yet. We want to see this settle in," Lange said.

He said his organization would wait about three months to decide what its next move will be. The Las Vegas Chamber of Commerce has agreed a study into the state's the tax structure should be made, he said. The governor has also suggested a change in the revenue structure.

"We have to give the governor and everybody who said they want to do something an opportunity to kick into high gear," Lange said.