Columnist Jeff German: Uncertain times call for action by Legislature

Wednesday, March 19, 2003 | 11:04 a.m.

It's been a long time since Americans have felt so much uncertainty in their lives.

A looming war with Iraq, rising oil prices, a struggling national economy and renewed threats of terrorism all are making us uneasy.

"There's probably a greater degree of uncertainty now than I can ever remember," says Nevada Resort Association President Bill Bible, a former Gaming Control Board chairman and state budget director who has been involved in the political process for 30 years.

All of the historic events on the national and international scene are starting to influence the debate at the Nevada Legislature over how to raise taxes to meet a $704 million budget shortfall in the next two years.

"This is coming at an extremely difficult time," Gov. Kenny Guinn says. "But it should make everyone focus more."

Right now, however, things are out of focus.

There are more ideas to raise taxes floating around than tickets to tonight's NIT first-round game between UNLV and Hawaii at the Thomas & Mack Center.

And the uncertainty over war with Iraq is creating more questions than answers.

What will a war do to tourism in Nevada? Will visitors stop flying here as they did after Sept. 11, 2001? Will the megaresorts on the Strip be forced to lay off workers again? How long will the war last?

And what happens to tourism if the war leads to another terrorist attack on American soil?

Without answers to these questions, it's going to be difficult to figure out which taxes will best bring Nevada out of its deficit. But not impossible.

One thing is clear. National and international events have demonstrated that the state's tax system is too fragile and needs to be broadened.

The biggest question of all, however, is whether lawmakers are willing to fix the system by the time they recess on June 2. Do they have the mettle to get us through these tough times and secure our future for at least the next decade?

Traditionally, Nevada lawmakers have been afraid to do anything too dramatic when it comes to imposing new taxes.

So there's a good chance that if the war drags out for more than a month and the uncertainty over the economy remains, it will give lawmakers an excuse to duck their responsibilities. They might decide to play it politically safe and approve only a quick fix to get the state by this year rather than seek a long-term solution before they go home.

That could force Guinn to consider spending cuts that would affect everything from education to highway construction. And it could lead to a special session later in the year to deal with the long-term problem.

Guinn says lawmakers, even with a war, have plenty of time in the next 10 weeks to broaden the state's tax base and ensure our economic future for years to come.

Let's hope they step up to the plate and do it.