Guinn dodges specifics on taxes

Wednesday, May 8, 2002 | 9:48 a.m.

CARSON CITY -- Gov. Kenny Guinn says the state needs more tax revenue, but he won't say he favors a tax increase and he won't indicate where the revenue should come from.

Guinn, who filed for a second term Tuesday, faces little formidable opposition so far. He has raised about $2.8 million. He said he has a number of commitments for donations but he won't cash those in if a major candidate doesn't appear.

The governor reaffirmed his commitment to raise the state's support per pupil to the national average. That would mean an additional $1,000 per pupil and would cost an extra $340 million a year.

But he indicated that would have to be spaced over a period of years.

Guinn anticipates he will have to cut the 2003-2005 budget by $135 million because of the downturn in revenues.

Guinn was asked several times Tuesday what type of a tax, if any he would favor. He said the state can no longer live off the sales tax and the gaming tax. He said he has always favored "broadening the tax base," which means calling on other sources to pump additional money into the state. But he declined to get specific.

Guinn will wait until his tax task force completes its study after the election. He said there are others, such as Chambers of Commerce, the gaming industry, the PTA, the teachers' union and the Legislature, looking at changing the tax structure.

He said that tax revenues may "have to be rearranged" -- a hint that the state may try to shift some programs to local governments.

Everybody has been talking about a stable tax system for 30 years, the governor said. There have been a number of studies and recommendations but "nobody has listened to them," he said.

Guinn referred to a Price Waterhouse report that recommended a business tax that was never enacted.

Talking about the freeze on hiring in state government and the flat budgets for the past three years, Guinn said, "We're at the end of our rope. We can't do that anymore."

Referring to the public schools, Guinn said the public, in polls, say they want more money held for education and are willing to support that. Asked if that mean the public would support a tax increase, Guinn said that was not addressed in the polls specifically.

Government must present a balanced budget to the Legislature based on the revenue estimates of the Economic Forum, a group of five laymen who predict how much the state will be taking in during the coming two years.

The governor will wait for the forum to make its recommendation on Dec. 1. At that time, he will see how much money is available and how much is needed.

He said he will build his budget on the revenue projections of the Economic Forum. But then he will also have a second budget that will include enhancements and revenues to support them.

If the Legislature buys his plan to start raising the educational funding to the national average, Guinn said, "I'm not saying it will all go for teachers' salaries."

There is presently accountability in the law for education, with increased testing and the requirement a high school senior must pass the test to graduate.

"The problem is we haven't allocated funds to administer what has been put in the law," the governor said.

Public opinion polls measuring his popularity and his chances against others are "very good," Guinn said, although he refused to release any numbers.