Columnist Erin Neff: Time grows short on details of Guinn tax plan

Erin Neff

Friday, Feb. 14, 2003 | 4:01 a.m.

CARSON CITY -- Lawmakers begin their third week in Carson City tomorrow at precisely the same place they were when the session began Feb. 2.

Sure they've tinkered with the edges of the $1 billion tax proposal, some criticizing Gov. Kenny Guinn and others wondering exactly how he plans to implement his plan.

But the calendar pages are quickly being ripped off faster than a professional attacks her item-a-day desktop calendar after a week's vacation.

The essence of a 120-day session is time. And never have the constraints of such a session been more evident than this one, due to the looming $704 million deficit and the virtual absence of answers.

Simply put, there are bills to pay and budgets to balance. Guinn says if lawmakers don't approve some tax and fee hikes by the end of March, the state will be perilously in danger of bankruptcy should an emergency arise.

Guinn delayed cuts by moving money from the rainy-day fund in a gamble. His hope is to balance this year's budget until new taxes come in and he can shift money back to protect the state against a future disaster.

But he hasn't exactly dotted every "i" in the tax plan he largely borrowed from the Nevada Task Force on Tax Policy, and lawmakers who were already skeptical about the "billion dollar baby" are now downright opposed.

Guinn proved last election year that he wasn't willing to come right out with answers to the deficit. Now as he tries to keep a variety of special interests in line and his own political legacy in check, he's proving to be the same non-committal leader he was on the campaign trail.

To his credit, Guinn outlined his vision for Nevada passionately in his State of the State address.

But as everyone in the Legislative Building repeats daily: The devil is in the details.

It was readily apparent last week that Guinn is happier to leave some of the devilish problems to lawmakers. The message from his top aides: He doesn't care how we solve the deficit as long as we fill the hole and diversify the tax base.

If lawmakers want to tweak tax rates, percentages or exemptions, so be it. Just keep in mind that the governor's budget is balanced, his aides said.

But how exactly is it balanced? Local governments are freaking out about whether the proposed 15-cent (or, is it 16-cent, there's still some disparity) property tax hike would work.

Some rural counties are already at the $3.64 cap, meaning a 15-cent increase without moving the cap to $3.79 would immediately result in reduced services and layoffs.

A local government that suddenly has to give 15 cents to the state would have 15 cents less to pay for salaries and services. If the cap is raised or if the state's portion is exempted from the $3.64, local governments would rest easier.

So it would be nice if Guinn would make a decision.

By law, the governor has to present his budget bill first. After that 175-page booklet is submitted, the others, including the tax force, can have at it.

Maybe the next two weeks of the Legislature will have some more details and some more discussion on what Nevada needs to do.

After all, the end of March is just 43 days away, and nobody is working weekends.

The clock keeps ticking and Nevada keeps moving closer to the $1.4 billion deficit waiting down the calendar. 0008.02and diversify the tax base.