Tax struggle is going down to the wire

Erin Neff

Friday, May 30, 2003 | 10:58 a.m.

CARSON CITY -- Heading into the final weekend of the 2003 Legislature, lawmakers this morning made some small headway in the budget impasse that has stalled tax negotiations.

But most lawmakers and lobbyists believed that Monday's midnight deadline could not possibly be met with a completed budget and tax plan.

The Senate and Assembly remain roughly $30 million apart in negotiations, although leaders were expected to meet this morning to try to bridge the gap.

The difference is related to salary increases for teachers. The Senate has proposed giving teachers a 2 percent raise in each year of the biennium, while the Assembly wants 3 percent raises in each of the next two years.

The Assembly has offered to drop down to a 2 percent raise in 2004 as long as there was a 3 percent raise in the 2005 fiscal year. The Senate negotiators rejected that offer earlier in the week.

Even as lawmakers work to finish the budget, lobbyists are still working on the tax proposal to try to assuage fears of some industries, especially the construction industry.

Some lawmakers have said they could support the Unified Business Tax, but said they were concerned that the entire tax package could hit construction firms and several other industries too hard.

In order for the Legislature to finish its work June 2, a budget has to be introduced on the floor by Sunday in order to meet the required 24 hours rest time before a vote.

The Assembly budget bill will also contain the tax proposal, forcing lawmakers who want to fund the budget to also support tax increases.

Gov. Kenny Guinn said if lawmakers simply run out of time to print the bills and vote on them, he would start a special session immediately after Monday's adjournment of the regular session. If agreement is not reached, however, Guinn said he would bring lawmakers back at the end of June, forcing them to make decisions by June 30 -- the end of the fiscal year.

The latter option is not a popular one among lawmakers.