Editorial: It’s time to display leadership

Wednesday, Dec. 4, 2002 | 8:57 a.m.

Nevada's Economic Forum projected Monday that the state will receive $3.8 billion in tax revenues over the next two years, which would be a 4.6 percent increase for the 2004 fiscal year and a 5.1 percent increase for 2005. But in that same two-year cycle, Gov. Kenny Guinn noted Monday, state government will need an extra $800 million just to keep its budget balanced. Much of the $800 million would support essential services. For instance, the state will need an extra $272 million just to keep up with the growth in public schools and another $80 million will be necessary to keep the university system afloat. In addition, the state will have to find $200 million to provide medical care for the needy.

There still are business groups and some leading Republican lawmakers who say that we can just simply cut our way out of these fiscal woes, but they're spinning pure fiction -- state programs already have been whittled away as much as they can be. Meanwhile, the Las Vegas Chamber of Commerce, among other business groups and lawmakers, opposes a gross receipts tax on businesses, a levy that is the centerpiece of the recommendations made by the Governor's Task Force on Tax Policy. Assembly Speaker Richard Perkins, D-Henderson, said Tuesday the business community should keep an open mind on all tax proposals until the 2003 Legislature convenes. He also said that any tax legislation should include a broad-based business tax. The Republican governor and Democratic Assembly leader ultimately may not agree on exactly what form and shape that new revenues should t ake, but at least they're acting responsibly. It's too bad that not enough others are following their lead.