Guinn vows to veto bill without rebate

Kirsten Searer

Wednesday, May 4, 2005 | 11:19 a.m.

CARSON CITY -- Gov. Kenny Guinn vowed again today that he will veto any budget that does not include a rebate to taxpayers.

At a press conference Monday, Guinn announced that by his calculations legislators will have about $175 million in extra money to spend this legislative session.

That's money that would be left over after the $300 million rebate that Guinn has vowed to give taxpayers.

Some Democratic lawmakers have proclaimed dead Guinn's proposal to provide rebates based on vehicle registrations, but Guinn said today that he doesn't expect he will have to use his veto power.

"I think the $300 million is safe. If it's not I'll take whatever action is necessary to protect the people's rebate," he said.

Legislators are still poring over numbers after hearing Monday that they will not have the excess dollars that they once hoped.

According to Guinn's budget, legislators have $83 million left of the surplus from the current biennium. Surplus money typically goes to "one-shot" projects such as new buildings or money to nonprofit programs.

That would be left over after his $300 million rebate and the $122 million that he earmarked for the state's "Rainy Day" reserve fund.

Guinn figures that legislators have $92 million left to spend in "new money" for the upcoming biennium. That money would typically go to recurring expenses such as health care or education programs.

The extra money would be left after the state takes care of several holes in the budget, including:

Disagreements over the rebate could signal the first signs of serious budgetary discord emerging in the legislative session, which is set to wrap up by June 6.

While legislative leaders haven't ruled out the option of a rebate, people from Assembly Speaker Richard Perkins, D-Henderson, to Senate Majority Leader Bill Raggio, R-Reno, have said they want to fix holes in the budget and look at other pressing needs before committing to a rebate.

Perkins had predicted that legislators will finish the session on time or earlier. But he said legislators might have to tinker with the governor's budget to balance the spending they want.

"There may be a number of adjustments we need to make to the governor's budget," he said.

Guinn defended his budget today, noting that it includes a "tremendous increase" in education and health care funding.

Even after his $300 million rebate, the state will still spend close to $2 billion in new money, he said.

And, Guinn said, legislators still will have enough money for full-day kindergarten, a program he supported in the last legislative session.

Democrats have made the program one of their priorities this session.

Guinn also said he doesn't think legislators have enough money to give state employees 5 percent cost of living raises in both years of the biennium, as Assembly Democrats have proposed.