Friday, May 11, 2007 | 7:26 a.m.
G ov. Jim Gibbons rode to office on one overriding theme, that he would not raise taxes or fees. This, despite urgent needs throughout the state.
Of all the needs, road construction is the greatest in terms of money - without new revenue, the state will be short $3.8 billion between next year and 2015.
Last year a task force appointed by former Gov. Kenny Guinn recommended a number of tax and fee increases to make up the difference. It warned that congestion far worse than anything drivers are seeing now will occur if the full amount of the deficit is not closed.
But Gibbons announced a different approach Thursday. Over the next eight years, he wants to "reallocate" $424 million from room taxes generated in Clark County, and $360 million more from the statewide vehicle tax and live entertainment tax, to the state highway fund.
Primarily affected by a room-tax reallocation would be the Las Vegas Convention and Visitors Authority, whose operations include promoting area hotels. The LVCVA board passed a resolution May 8 opposing any such reallocation.
This now sets up a fight between Gibbons and most of the gaming industry, with little time for quality analysis, because the legislative session ends June 4. Additionally, there is very little time to analyze what impact the reallocation of all this money would have on programs now benefiting from it.
Gibbons claims that he can take the reallocated tax money and leverage it into $2.5 billion by issuing state bonds. Left unsaid, of course, is that Nevadans in the future will have to pay back those bonds through increased taxes and fees.
Gibbons may be honoring his vow to not raise taxes on his watch, but he is not honoring his duty to lead. A responsible governor would create a stable, sufficient and permanent source of revenue for our roads through a plan that included a broad range of incremental tax and fee increases.
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