GOP lawmakers, Guinn near deal on taxes

Erin Neff

Thursday, May 22, 2003 | 11:04 a.m.

CARSON CITY -- Assembly Republicans met with Gov. Kenny Guinn on Wednesday to shore up their concerns about the state's deficit and the governor's call for a record tax increase.

Those who attended the hour-long discussion in the Capitol painted it as positive and walked away feeling better about the decisions about to be made.

Even before the caucus meeting, Assemblyman Joe Hardy, R-Boulder City, told the Sun that he had committed to Guinn that his party would be able to bring enough votes to the table to approve at least $704 million in new taxes.

How much more remains the question.

In separate interviews with the Sun on Wednesday, numerous Republicans said they could not go much higher than the $830 million that the Senate Finance Committee has said is needed to close the budget.

The Assembly Ways and Means Committee put its budget closings at $1.06 billion -- an amount Republicans have consistently said is too high.

"I can't go to a billion," Assemblywoman Valerie Weber, R-Las Vegas, said.

Hardy said he thinks that once the number tops $900 million, the two-thirds majority in the Assembly will be very hard to muster.

But as Guinn and his staff assured Republicans that $704 million is the line in the sand needed to fill the deficit, talks continued across the legislative complex to settle the $230 million difference between the Senate and Assembly's budget closings.

Assembly Speaker Richard Perkins, D-Las Vegas, and Senate Majority Leader Bill Raggio, R-Reno, spent time discussing how the two houses could come together.

Although many saw Wednesday's cancellation of a planned meeting between the two fiscal committees to settle the budget differences as negative, those close to the leaders' talks said the two made significant progress.

Cancellation of the joint budget committees' work session was done to allow the leaders to finish their work, a source said.

This afternoon both taxation committees plan active work sessions. In the Senate lawmakers will consider the $730 million in taxes the panel has already approved and the $600 million more outlined by Sen. Randolph Townsend, R-Reno, as possible.

The Senate committee is expected to pass a total tax package this afternoon for consideration by the full Senate.

Thirteen votes are needed in the Senate to pass any proposal that raises taxes. The Republicans hold a 13-8 margin of control in that house.

The Assembly committee is expected to hold a work session to discuss the Assembly Taxation Revenue Plan -- a proposal that incorporates the Unified Business Tax and other levies to raise about $950 million over the next two years.

The committee might take a vote as early as this afternoon on specific taxes for inclusion.

In the Assembly 28 votes are needed to pass any tax proposal. Democrats hold a 23-19 edge in that house.

Assembly Republicans are seen as a key player in the last week and a half of the tax discussion because just five are needed to join the Democrats in support of a tax package.

Still finding five solid votes out of 19 is still difficult, particularly without the budget number being settled.

And several Republicans continue to lobby colleagues to block support of a large tax hike. Assemblyman Bob Beers, R-Las Vegas, said Wednesday he could not support a tax hike in the range of $300 million let alone the $704 million needed to close the deficit.

Beers said he still does not think there will be a shortfall that requires $704 million in taxes.

Other Assembly Republicans have been steadfastly opposed to any tax hike or fee increase throughout the session -- voting no on each one.

In the Senate a trio of conservative Republicans has led opposition to a large tax hike. Still, Sens. Ann O'Connell and Barbara Cegavske, both R-Las Vegas, and Sandra Tiffany, R-Henderson, have voted for some increases in budgets or taxes.

O'Connell serves on Taxation, Cegavske on Finance and Tiffany on both committees dealing with the budget and tax plans.

Legislative leaders are privately saying the two houses will not be able to reach consensus on a tax plan. But sources within both parties believe that whatever is able to pass out of each house with a two-thirds majority will send leaders into a conference committee to resolve the differences.

Conference committee members are appointed by legislative leadership. The meetings are open, however they are typically hastily called and information shoddily posted to announce where the meeting is being held.

Also, leaders would not allow a conference to be held unless they knew ahead of time which taxes, and what amount, would be possible to find common ground. The Senate Taxation Committee, up until now, has favored a sales tax on services over a broad-based business tax. The governor has said he will veto a sales tax on services, and Perkins has said a broad-based business tax is required of any plan that passes his house.

Any tax deal worked out in conference will generate a report that two-thirds of each house must approve. Approval of a conference committee report is done with a voice vote.