Titus calls Guinn’s vehicle rebate plan a ‘pipe dream’

Monday, April 4, 2005 | 9:20 a.m.

CARSON CITY -- Senate Minority Leader Dina Titus, D-Las Vegas says Gov. Kenny Guinn's $300 million rebate plan to taxpayers is a "pipe dream" because of changes and new demands on the budget.

She said Friday she would be surprised if there is money available to refund up to $300 per vehicle to motorists in Nevada based on vehicle registrations.

But Guinn said Saturday there is $2.3 billion in new money available and the people should share in the added tax collections that have been coming in faster than expected.

Guinn also said he expects the state to receive $100 million to $103 million in added tax revenue this fiscal year -- money above the projections the Economic Forum made last December.

Titus first made her pipe dream comments Thursday in an effort to convice senators to freeze the property tax rates this year.

She repeated her assessment on Friday. She said the state is going to have to put another $43 million into the public schools to make up for revenue lost in limiting property taxes to 3 percent for homeowners and 8 percent for business.

In addition, the state is looking at creating a $50 million fund to help local governments who run into major financial difficulties because of the tax cap.

Titus said there are proposals for $72 million for all-day kindergarten supported by the Democrats, $14 million for voting machines for Clark County and $11 million for a new courthouse in Ely.

"Pretty soon that $300 million is eaten up," she said.

"Of all those projects that have come to finance (committee) and all the change orders, I would be amazed they would get that kind of rebate," she said.

Senate Majority Leader Bill Raggio, R-Reno, said the rebate would be one of the final items taken up in approving the budget. He said he did not know now if it would be approved.

The Economic Forum meets May 2 to give new estimates on the tax collections for this fiscal year and for the next two fiscal years. The Legislature, in drafting a budget, cannot exceed those projections.

Guinn said the change orders coming from his budget office have been minimal. He said there is one for about $64 million for the next two fiscal years for the Clark and Washoe School districts because they forgot to include something in their budget.

But that money will come out of the 2005-2007 budget.

In talking about the $2.3 billion in higher tax revenue collections, Guinn said, "not giving it back will come over my strong objections," referring to the rebate on motor vehicles.

The governor noted that $8 million is set aside in his budget for the new courthouse in Ely but that project now has a price tag of $11 million.

Guinn said his budget includes money for $200 million to replenish the state's rainy day fund.

The governor also anticipates an additional $50 million to $100 million in added revenue for next fiscal year starting July.

To not share the higher than expected tax collection with the public, he said, "would be a big mistake," adding that to spend all of the added revenue "would send the wrong message" to the public.