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Published Monday, Dec. 8, 2008 | 10:47 a.m.
Updated Monday, Dec. 8, 2008 | 7:21 p.m.
Gov. Jim Gibbons
CARSON CITY – In a special session that lasted less than nine hours, the Nevada Legislature plugged a pending $340 million deficit but lawmakers agree the tougher questions come next February.
Assembly Speaker Barbara Buckley, D-Las Vegas, called it a Band-Aid, but tax revenues will be down by 34 percent in the upcoming two fiscal years with a growing population.
Senate Minority Leader Bill Raggio, R-Reno, said the 2009 Legislature “will be more difficult and there will not be the agreement we have today.”
In Nevada’s 25th special session, the lawmakers today cut $72.8 million from state budgets, swept unused money from other accounts and authorized borrowing up to $160 million from a local government investment fund.
Senate Majority Leader Steven Horsford, D-Las Vegas, said the lawmakers met the challenges, enabling the state to continue to provide “vital services” to its citizens. And he praised the “collegiality” of the proceedings.
Leaders of both parties in the Senate and Assembly put together the plan, which avoids a general tax increase but does hit some businessmen and rental car owners. And there won’t be major layoffs of state workers.
But local governments will be hit with more expenses, because the state was required to balance its budget.
Raggio said some of the proposals passed today give lawmakers “political heartburn,” but the Constitution requires the state to have a balanced budget.
One of the most discussed was the idea hatched by state Treasurer Kate Marshall to borrow up to $160 million from a local government investment fund to be repaid in four years.
Sen. Mike Schneider, D-Las Vegas, said the state is a business and every businessman has a line of credit. “We don’t like it but we have to do it.”
Sen. Bob Coffin, D-Las Vegas, said the state has borrowed money for operation nine to 10 times in the past, including during the mining downturn in the 1880s and 1890s.
Marshall said it would be cheaper to borrow from this local government fund, avoiding a $640,000 issuing cost that would be charged on going into the commercial market. The state will pay one-quarter of one percent higher interest rate to the fund, which on Monday earned a return of 1.97 percent.
Gov. Jim Gibbons will have to suggest a plan to the 2009 Legislature on how to repay the loan within four years.
Today's session opened at 9 a.m. and closed at 5:54 p.m.
There were long lines of lobbyists to sign up in the morning and 202 had registered. But a spokeswoman for the Legislature said most were pre-registering for the 2009 session. There were more than 800 lobbyists registered for the 2007 Legislature.
Besides the cuts in government spending, businessmen and car rental agencies will be docked. At present, merchants who collect sales tax for the state are allowed to keep 0.5 of a percent as their fee. That will be reduced to 0.25 of a percent, generating more than $2 million in extra revenue. But this reduction expires next June 30.
Car rental agencies now charge a 6 percent sales tax that goes to the state and an additional 4 percent that they are allowed to charge to offset their registration and other expenses. That was reduced to 3 percent at a prior session and this Legislature took away another 1 percent, leaving it at 2 percent.
Leslie Pittman, representing a number of small car rental agencies, said this business is hurting with the downturn in tourism. And Bob Ostrovsky, also representing the industry, called it a tax. They suggested the lawmakers let them pay the $1.8 million up front, in order to help them with their cash flow. But that suggestion was rejected.
Mining companies however were allowed to prepay their tax of $28 million to help the state get through this fiscal year. But that will expire in two years.
All 14 Republican Assembly members voted against Senate Bill 1, which changed the distribution of the revenue received from leasing federal lands, and Senate Bill 2, which called for reducing the allowances now given to business.
Nine Republican Assembly members and Assemblywoman Peggy Pierce, D-Las Vegas, voted against Assembly Bill 2, which allows the state to borrow the $160 million. Sen. Barbara Cegavske, R-Las Vegas, was the lone member of the Senate that opposed AB-2.
One of the major cuts calls for eliminating $25 million this fiscal year that is used to help hospitals pay for indigent persons injured in accidents or those without insurance.
Bill Welch of the Nevada Hospital Association said that 40-50 percent of the acute care hospitals are now operating in a deficit. He said he realized the state was in financial trouble but added the 2009 Legislature will have to way to cure these problems.
“The hospitals are making decisions now on what services to be retained,” he said. There have already been applications from hospitals for $2.8 million reimbursement, but that won’t be paid.
And he said the counties in many cases make up the deficits.
The 2009 Legislature will also be asked for $38 million to keep the Medicaid program solvent for the rest of this fiscal year. And another $15 million will be needed for the Division of Children and Family Services, said Mike Willden, director of the state Department of Human Resources.
While there will be cuts in many health and welfare programs, Willden said only a few will result in longer waiting lines. For instance, there will be a $500,000 reduction in disability services that will result in longer wait times to qualify for services such as personal assistance, autism therapy, independent living programs and traumatic brain injury.
There will be a $2.8 million cut in the budget of the state Tourism Commission, reducing promotion and advertising and eliminating $75,000 for an office in China. The state Commission of Economic Development will give up $1.3 million and of that $471,797 will be deleted from the Nevada Development Authority in Las Vegas.
The four bills that were passed now go to Gov. Gibbons.
(Below is an earlier story.)
---
CARSON CITY – The special session of the Legislature opened today with businesses and the accounts of tourism and economic development in lawmakers’ sights.
The Legislature must come up with $340 million to get the state through this fiscal year.
Their plans include a variety of plans to reduce spending, including taking $2.3 million from the state Economic Development Agency and $2.8 million from the state Tourism Commission.
Also, businesses, who retain 0.5 percent of the amount they collect in sales tax as a reimbursement, could see that amount reduced to 0.25 percent.
Gov. Jim Gibbons said the plan to reduce the collection allowance for businessmen was brought to him by legislative leaders. “It’s not a tax increase,” he said. “I would not support it if it were a tax increase.”
The governor said the reduced allowance would be repealed on June 30th. Otherwise if nothing is done in the regular session in 2009, the allowance would be returned to 0.5 percent.
“These are taxes paid by people buying materials,” he said. “They already pay this tax. All we’re doing is short term taking a portion of what was reserved to assist with the state’s deficit.”
The lawmakers intend to borrow $160 million from a local government investment fund and pay it back at 2.75 percent. And they will sweep $76 million in excess accounts of the various agencies.
Assembly Speaker Barbara Buckley, D-Las Vegas, said there will be “minimal” layoffs, if any, under the plan developed behind closed doors by the leaders of both parties.
Buckley said officials found $30 million in general fund dollars allocated to the state Transportation Department. Lawmakers plan to take the cash and instruct the agency to issue bonds for the projects.
The plan also calls for stripping $11.3 million from the drug budgets of the mental health hospitals in Las Vegas and Sparks. But Buckley said she has been assured by state Human Resources Director Mike Willden that this will not reduce medications for those in treatment.
Other reductions will be revealed as the session rolls into full gear.
In line with the Prop 8 Musical video. There's Money to be Made. Legalize gay marriage in Nevada. Set up divorce laws for gay divorces. Then the gays who can't get married in other states come to NV to get hitched. Also, the gays who married in states where it's legal and live in states where it's not can come to Nevada and get a quickie divorce. Vegas will be the marrying capital again and Reno will be the divorce capital again. There's money to be made.
Hey that's true, but it will never get by the religious right. These people, most embodied by the Mormom political machine, won't let that happen without a fight. While we're on the subject of borderline lost causes, pot should be legalized and heavily taxed like cigs. Boom, we're out of recession and making money. But that's in Imaginationland. Nice place to visit, but can't really call it home.
Good idea Calico! Let's take something else that nobody wants and bring it to our state. I have another great idea; how about taking other states nuclear waste and storing it in Nevada. Wow, that could be profitable too. Let's take what people don't want in their states and bring it to ours, that's a GREAT idea. But I have a better one, let's not take other peoples trash and make our state any worst than it already is.
Not really sure if I should be offended for gays. Because the above post does seem to liken gays to either nuclear waste or trash...
In any case, Calico's point still remains valid. Besides, would gay marriage honestly, honestly tarnish marriage's image in Las Vegas. For crying out loud straight folks can get MARRIED in a drive-through by Elvis! Those damn gays would definitely weaken marriage out here...lol.
I missed your comment before I posted that last one redferret. Otherwise, I would have said you have your head up your #ss. There are ten million Mormons worldwide, yes WORLDWIDE. There are three hundred million Americans. They are so powerful that Mitt Romney had no chance of being elected because he is a Mormon. Take a small look the Catholic church on the other hand. You know, the church that told it's members to repent if they voted for Obama. Google how many members are in that church. It was about 67 million in 2001 just in the United States alone. Go ahead and keep blaming Mormons though, everyone else does. And your MJ comment is hilarious. One small problem with your arguement. If everyone is smoking weed like cigs, there would be no one working. They would all be stupid stoned saying "dude where's my car". They also could not pass a drug test with any employer, yes no one would hire the idiots.
And the previous post was not comparing gays to trash or nuclear waste. It was saying just because we live in Vegas doesn't mean we will take what everyone else doesn't want for money. I don't want gay marriage or nuclear waste here. I think we have enough to deal with how it is now.
go to Stations, Harrahs, MGM, Sands, Wynn, Boyd, and the others...I am sure they will pay their fair share (lol).
First I was pointing out that the Mormons were BIG backers for Prop 8 in California. So much so that most people know in California that they were major backers of it. Second, I know the Mormons aren't powerful, but they can strike moral chords at times. That is why they were successful in California, and based on that premise, I feel they would be successful in Nevada in shooting down such a proposal.
Third, you have very poor logic skills. First if weed were legal, IT WOULDN'T BE ILLEGAL TO SMOKE IT, HENCE EMPLOYERS WOULDN'T TEST FOR IT. Second, you are very inexperienced if you think all pot smokers are unmotivated morons who don't get work done. While there are many who just toke all day long and get nothing done, there's the vast majority that enjoys it much like many responsibly enjoy alcohol, namely they do it safely, sanely, and responsibly.
Finally, don't make poor comparisons. You did set yourself up because you did explicitely compare gays to nuke waste and trash. Think before you post.
Also your reading skills seem to be sub-par considering I had noted that legalizing pot is "a borderline lost cause". i.e. I meant that while it sounds good on paper, it will most likely never happen for numerous reasons, not least reactionary, hysteria fueled responses such as yours.
I only think people who want to tax everything are unmotivated morons.
Now if you want to talk about a lost cause, lets talk about budgetary facts and what is not being reported: http://npri.org/blog/imaginary-budget-cu...
The fact that a 9% decrease in funding results in draconian cuts? Yeah right. Never mind that the state increased its own funding nearly 32% back in 2004. Woe is the state hysteria has a short term memory - but you would too if the only thing you had to do to make a living was to take from others who worked hard to make a living.
Where did this $340 million come from anyway? Sounds like this number was made up to increase spending over the economic forum's projections. Looking at the Economic forum's site the difference between the June estimate and December is 205 million. That is the general fund, so perhaps the other $135 million is for the other non-discretionary spending the state does. If so, the newspapers aren't reporting it as such and the politicians aren't making the distinction. That wouldn't be surprising since all they have to do is keep people confused and they can pass almost anything in the legislature.
Listen king spammo,
First you've posted this spurious factiod enough on this site.
Second, if you do legalize pot, it should be taxed. That's not moronic, it's called an excise tax. We already tax cigs and alcohol like that; why not weed if we legalize it?
Third, if gay marriage is allowed in this state, it would be taxed just like anything else at 7.75%. That means weddings cakes, performers, booze, outfits, transportation, accomodations... ie all taxable goods that would help us out if we allowed gay marriage.
So why don't you look before you post, actually identify yourself as a contributor to NPRI, and not just spam you jingo jango all over the boards without matching it to the subject.
bobman "I don't want gay marriage or nuclear waste here. I think we have enough to deal with how it is now."
What do you imagine we would have to "deal with" on gay marriage? I'm with you on the Nuclear waste, but as I see it, there is nothing on gay marriage to deal with. Let them get married! There is nothing to deal with!
OK Red, here we go,
"Also your reading skills seem to be sub-par considering I had noted that legalizing pot is "a borderline lost cause"." My reading skills are just fine. If this is such a lost cause then why you are still on here wasting you time talking about it? And do you really think that alcohol is not a problem? Sorry, you misunderstood my first post, I should have been more clear. I also misunderstoon your fist post when you said "These people, most embodied by the Mormom political machine, won't let that happen without a fight". I took that as you meant that the words "most embodied" meant something along the lines of the majority or a major force. Good thing you cleared it up by stating "I know the Mormons aren't powerful, but they can strike moral chords at times". I will be sure to polish my reading skills and will try not to make any more poor comparisons and set myself up anymore. Don't want that to lead to anymore hysteria fueled responses.
And bobman, fyi, the Mormon church conducted a national broadcast to every temple, calling on members to organize and write checks to the Prop. 8 campaign. Mormons donated more than half of the $40 million behind Prop. 8, even though California Mormons represent just 2 percent of the state's population. The Mormon church continues to spend exorbitant sums to mislead the public and attempt to transform its image into one of a victim of anti-Mormon factions, namely, those in support of equality.
No, Johnvegas, they didn't!
Check your facts and look them up before you post. The mormon church did not spend one penny to this casue. Some members did contribute, and some contributed against it. The church itself did not endorse or denounce the proposition. As they do with every single election and ballot initiative, they state to vote your concience. No broadcasts to temples or grand parading. Get your facts straight before you post. I am not even mormon and I know these things.
I'm not even a Californian, and I heard all the stories of how the Mormon church did mobilize for this initiative. It's their right to do so, but I'm calling them out on it.
kdr81, so good to have you back contributing. We less enlightened folks have been wallowing around in the dark here without your insightful, intelligent, thought provoking dribble.
You always needed a lot of help gmag, I'm just glad I can enlighten you in some way.
I mean, someone might think you've never had a challenging thought in your life - like pondering why the state has 63% more money in the biennial general fund budget today, despite the budgetary shortfall, than in did in 2002-2003 just before the MBT and the economic bubble.
Red,
like I said, people who want to tax everything are morons. Excise taxes are horribly regressive btw.
But then again, some people only want to help the poor superficially and cite government funding as examples of how they've helped the poor.
Thanks for tooting your own horn while screwing poor people.
Hey KDR,
It would get taxed anyways, moron. The fact that you start half your things with "only a moron" says enough about how you think of the world. BTW how's that T4 Nazi program treating you? Still clearing out the hospitals of today for the people of tomorrow?
I actually happen to think that we should not do excise taxes...they typically get abused and are used for social engineering purposes as much as for revenue.
In regards to T4, I should warn you that American progressives were big into that support of stuff...well maybe not killing here in America but lobotomizing patients and sterilizing men and women. Aren't you a progressive?
"In June, leaders of the Church of Jesus Christ of Latter-day Saints made a fateful decision. They called on California Mormons to donate their time and money to the campaign for Proposition 8, which would overturn a state Supreme Court ruling that permitted gay marriage."
"To support Proposition 8, the Mormon Church entered into a coalition with other religious organizations, including evangelical groups that have tended to view Mormons warily. It was a Catholic bishop, Mormon officials said, who requested the Mormon Church bring its members into the fight. Now those groups are rallying behind the embattled church."
Oh, and here's the letter from the First Presidency of the Mormon Church, read aloud to all congregations on June 29, 2008:
http://newsroom.lds.org/ldsnewsroom/eng/...
Now tell me the Mormons did nothing to help pass Prop 8, Bob. It's hilarious that you're telling others to do research when you obviously have done none yourself.
I also find it funny that people like you hate sales taxes but want excise taxes. You all probably justify it because of social engineering goals.
Oh, here's the freakin' broadcast Johnevegas was talking about.
You know, the one you said didn't exist.
http://www.lds.org/ldsnewsroom/media/med...
Actually in a state like Nevada, I'm for a sales tax, because we need it. I'm also for excise. It's also called a sin tax, and as such I think it helps. If you are going to use an addictive substance that does do some social harm, the government should tax it to fund programs against that substance's abuse. Social engineering... if you want to call it that sure. But I still view it as needed. That's why cigs need taxing, to help with all the problems that cigs make.
Also, I'll just stick with liberal, because the taxonomy of politics is stale and used for partisan issues on both sides.
"Check your facts and look them up before you post."
I did bobman. You're wrong. Very.
The problem is, the state collects far more from the cigarette tax than it is forced to pay for in cigarette related illnesses for the poor, elderly, and state retirees.
And I'm not even including the MSA with the Big Tobacco cartel.
Therefore both the tax and the MSA have nothing to do with treating the social problems created by these bad habits and everything to do with big government funding favored programs. Example MSA helps fund the cigarette related illness of education.
No excise taxes should be eliminated. If you do a sales tax all goods should be treated equally. The government should not be doing social engineering. Neither right-wing nor left-wing engineering.
Once again the the little people get screwed by the legislature.
Why can't the Mormons and everyone else for that matter just leave the gays alone - if they want to get married SO WHAT - it's their business alone - not anyone elses. Mormons can be so hypocritical - coming out against gay marriage while (some) of their own continue to think plural marriage is A-OK - just a bunch of pedophiles using religion as an excuse to have sex with very young girls - if not then please explain why each 'wife' is younger than the last... I really don't understand why people involve themselves with the lives of others - have your own moral ground to stand on but stop trying to shove it down everyone elses throat.
And btw, I'm not Mormon, I'm not Gay - and I'm not a Catholic (anymore). I gave up on THAT so-called religion when they started protecting their pedophile priests (which really means they're trying to protect all their assets).
The mob just loves it when any state ups the cig tax.
It just makes the black market that much bigger.
Problem is Azsk8fan,
Is that people on both the left and the right are very much into using government power for social engineering.
Did you know that you can live with a smoker for 30 years and your chance of getting lung cancer in your lifetime is still less than 1%.
Yet we've banned smoking on the grounds that 1 hour of your time may drastically increase your chance of getting lung cancer.
On the other side of the coin you have the fact that there are men out there who have sex with children. We know that gay men get SD's at higher rates than any other group. Some believe that God destroyed an entire city because it was into adultery, sex before marriage and gay sex. So to stop boys from getting raped, men from getting STDs, and to stop god from destroying America they want to stop gays from marrying.
Social engineering for a perceived good...but again its social engineering at the expense of human freedom - freedom to pursue your own interest in voluntary cooperation with others.