Editorial: Beers’ plan spells trouble

Friday, April 15, 2005 | 9:07 a.m.

Sen. Bob Beers, R-Las Vegas, would address an issue of the moment -- complaints about taxes -- by constraining the budget of Nevada's state government for all time. Still smarting over some modest tax increases that were voted into place by the 2003 Legislature, Beers would change the Nevada Constitution to require that spending in the future be based on a formula. It would not change, regardless of how the issues facing the state change over the years.

Beers has introduced Senate Joint Resolution 5, which calls for Nevada's budget to be governed by a cold, mathematical calculation rather than be decided by representatives that the state's residents send to Carson City. Beers' bill would limit government spending to the rate of population growth, plus the rate of inflation. It would also require the state government to refund to taxpayers any surplus money that was collected. That in itself spells trouble, as it would limit the state's ability to build an adequate rainy-day fund. A built-in surplus is essential to all government budgets, so that help can be speedily provided in the event of unforeseen developments.

Basing a budget on growth is also troublesome, as it cannot answer the question: What kind of growth? In many years, a huge percentage of new arrivals here need government services, Medicaid, for example, right away, before finding work. In this state, whose economy depends on service workers, are we going to deny hard-pressed families food and medical care?

The conservative senator is playing to Nevada's vocal anti-tax constituency. But it's dishonest to suggest that governments today, given the wide range of social problems and the cost of health care, can function on shoestring budgets. Beers' plan overlooks the glaring fact that Nevada is way behind in providing services. It would keep Nevada that way, rather than allowing it to catch up with other states in education, public safety and other critical services.

In 1992 Colorado adopted a constitutional change almost exactly like what Beers is pushing for Nevada. Today, the state's finances are in shambles. The governor and Legislature are examining a number of proposals that would get them out from under the amendment's financially suffocating dictates.

Placing a budget formula in the Constitution is a flawed idea that our state legislators and residents should reject. In our view, the Nevada Constitution exists to preserve our basic rights, such as voting, and not as a document to hamstring our day-to-day governance.