Tax-proposing Guinn backs Bush tax cuts

Benjamin Grove

Monday, Feb. 24, 2003 | 11:07 a.m.

WASHINGTON -- Gov. Kenny Guinn emerged from a White House meeting today and said he still supports President Bush's tax cuts, even though Guinn is championing tax hikes in Nevada.

Comparing the budget deficits faced by the state and the nation, Guinn said Bush faces a recession, homeland security costs and an expensive war that must be waged to protect the nation.

"Our problem compared to (Bush's) is that we have to balance our budget and they (Congress) don't," Guinn said.

Guinn is in the nation's capital for the annual winter meeting of the National Governors Association. He said he was commiserating with other governors, most of whom are facing budget deficits. Some are now mulling or proposing tax hike plans of their own.

Guinn said he understands why polls in the state do not generally favor his broad tax increase proposals, but he said most people think he is doing what is best for the state.

"We're at the point where we just have to take on the tough issues," Guinn said. "We're at a fork in the road."

Guinn was among the governors who met with Bush for a formal dinner Sunday night and then again today. Sunday, the president listed the responsibilities he and the governors shared, such as homeland security, creating jobs and providing affordable health care, issues of top priority at the meeting.

"We'll meet them together," Bush said.

Governors in general are concerned that the federal government is not contributing its fair share of the federal-state Medicaid program. They are prodding Bush and Congress to support more federal funding for school districts for special education students.

The governors also are frustrated that federal assistance for homeland security has been slow to filter to states. Guinn said Nevada was in better shape than states with shorelines and ports to protect, which are desperate for federal aid. Guinn said money promised by Bush and Congress is starting to trickle in.

Attorney General John Ashcroft and Homeland Security Director Tom Ridge briefed the governors. Among other priorities, Ridge said he wants to establish more secure phone lines with officials in the states, Guinn said.

Partisan friction was more evident at this winter's meeting than past gatherings, when the states' top executives have worked to fight for common causes. A proposal to ask Washington for "immediate federal fiscal relief" to help states cover their budget shortfalls and spur their economies was set aside Sunday on a party-line vote, with Republicans opposed to the request and Democrats in favor.

"We need a carefully tailored jobs incentive package now, not later," said Democrat Gray Davis of California.

Republican John Rowland of Connecticut said, "Usually, there's a couple things we can all get behind. I don't think so this time. Not just yet." Kenny Guinn