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No time like later to clue public in on crisis budget
Friday, April 3, 2009 | 2 a.m.
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Nevada legislators are busy deliberating and being deliberative, so don’t ask them how much money they need or where they’re going to get it.
That’s the takeaway from a news conference here with bipartisan leadership of the Assembly and Senate.
Earlier in the week, Assembly Speaker Barbara Buckley, a Las Vegas Democrat, promised to offer up a dollar figure of cuts they would restore to Gov. Jim Gibbons’ proposed budget. Gibbons’ two-year budget was filled with cuts viewed by leaders of both parties as untenable. It was about one-third less than the 2007-08 budget when inflation, caseload growth and other automatic costs were factored in, and it included a 6 percent pay cut for teachers and a 36 percent cut to higher education.
With Senate Republican leader Bill Raggio and Assembly Republican leader Heidi Gansert standing aside at an awkward distance Thursday, Buckley delivered the same message she and Senate Majority Leader Steven Horsford have been giving for months. We have a process, and we’re following the process.
“I want to stress how dire the situation is,” Buckley said. And the situation is worsening, she said.
The latest bit of bad news, which came earlier in the week: Revenue will be $400 million to $500 million less than forecast by the Economic Forum, the state’s official financial crystal ball watcher. All told, the state needs to find $2.16 billion to maintain service levels.
So, the obvious questions. What are “essential services”? How much will come in cuts, and how much in tax increases?
Sorry, for those answers, come back May 1 when the state Economic Forum comes out with new numbers on how much money the state will have for the next two years.
Until then, they’re deliberating on it.
But, as one observer pointed out: Why do you need to know how much money you have to determine what “essential services” are?
To be fair, the budget committees meet early most mornings and are engaged in the rigorous process of going through the executive budget and determining what to restore, a process that isn’t yet complete. They also aren’t sure how much stimulus money will come from the federal government.
Sources say Raggio vetoed the idea of putting out a magic number Thursday, which would have begun to let the public in on the unmentionable: the size of the tax increase.
Tax increase? What tax increase?
“We’re engaged in a deliberative process,” Buckley said.
The fear, and one that’s entirely reasonable, is that as soon as talk of taxes begins among legislators, opposition will begin lining up against them.
Mention a sales tax on services? Here come the lawyers and accountants who don’t want to be taxed.
A corporate income tax? Here come the corporations.
To Raggio’s credit, he said lawmakers are crafting a lean budget and that everything, including a tax increase, is on the table. He said he’d never seen anything like this situation in his more than three decades in the upper chamber.
Raggio said he came to the news conference to represent the “loyal minority.” He lamented that the group didn’t have more information for the public, though he is known as someone who keeps everything under wraps until the very end.
About the only revealing comments came from John Ritter, CEO of Focus Property Group, a big developer in Southern Nevada. His workforce is just 10 percent of what it was at its peak. He said the budget can’t be balanced with cuts alone.
We can’t keep bringing up the rear on all the quality of life statistics, he said, referring obliquely to our school and health care rankings.
Ritter even gave a number: $1 billion. That’s the size of the tax increase we need, he said.
Buckley had to love that.
Oh, no, said the speaker, who is considering a run for governor. No billion-dollar tax increase around these parts.
Also noteworthy: Ritter said there’s broad consensus in the business community that a tax increase is needed. He said he talks with a working group regularly, which includes big players from gaming, mining and the Las Vegas Chamber of Commerce.
He said the tax increase ought to be stable, broad-based and fair.
So maybe it’s time to get on with it.
All in good, deliberate time.
Sun Capital Bureau reporter David McGrath Schwartz contributed to this story.
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Ritter is right.
Can holding the citizens of nevada hostage for months while they try to figure out how to raise taxes and still get re-elected be good for Nevadas economy?
I wonder how many business's and individuals are putting off major purchases until they see how much more these purchases will cost them.
We purchased a house last November and watched the prices continue to fall .. Now our congress has told us that they would have given us a 8,000 dollar tax break IF we had waited 2 months.
What to do ... what to do!
They should get big time concessions on reducing retirement benefits for new state employees if they are to going slam the state economy with over $600 to $900 million in new taxes.
The everyday worker in Nevada is going to get screwed over.
We will probably get another 2% to 3% point increase in the unemployment rate because of the the anti-stimulus effect of raising taxes during a tough recession which is extremely dumb.
Also raising taxes will probably not raise as much money as they think that because of the negative multiplier effect of removing money from the private sector.
Nobody in Carson City cares about the jobs of the everyday worker.
Buckley is just jumping at the chance to raise taxes. Screw them private workers.
Another well thought out eloquent statement from nanace.
Nance is clearly the stupidest person who still is able to get a post on the internet. Miserable logic, senseless non-sequitors, baseless accusations--the typical Nance post. Worthless.
Ritter is definitely right. Ms. Buckley: for once stop the politics as usual and think of the future generations in this state. You know that if your raise taxes your hopes for running for governor will probably vanish, or maybe not.. if you're able to convince the public that more money into public services will get us out of the rear end in every quality of life ranking. Put your personal ambition behind and do something that will lead us out of this mess. We need a State Income Tax NOW. All other legislators: DO THE SAME!
I am not aware of anyone stopping all you tax proponents from voluntarily contributing more of your wealth to a government that is unable to balance their checkbook, are you?
Increase taxes as much as you want - I for one will just keep putting employees on the states payroll (unemployment). I will be doing that to quit a few when the minimum wage increase goes into affect. The increase will affect the state as much as it affects me, as I wont have to pay it, they wil be fired. oh - excuse me - layed off!
jfNance32 has his crystal ball out again, making all kinds of wild and speculative predictions based on his hatred of Barbara Buckley. It's going to be a $600 million dollar tax increase! No, wait, a $900 million dollar tax increase! No, wait, my crystal ball is cloudy so I'm just going to give a random range! Jobs will be lost! (Does he mention the number of jobs that will be SAVED by refusing to fire teachers or police officers or any of the numerous public officers who will continue to work and serve the citizens of the state of Nevada? Nope!)
Even the Focus Group has opened it's eyes and realized the sad truth about the state of Nevada. The chainsaw that jfNance32 and neiman1 and all of their buddies would use to gut the state of Nevada will do irreparable harm to our state. Do they care about the real-world effects of their policies? Nope! Anything to please Grover Norquist!
Let them go the way of their idol, Jim Gibbons...