$1 billion arises during talks on budget, toll lanes

By David McGrath Schwartz (contact), Cy Ryan (contact)

Friday, April 3, 2009 | 2 a.m.

There are a couple of magic numbers to consider when talking about tax increases in Nevada.

One is $836 million.

That’s the amount of the 2003 Legislature’s famous tax hike. The number has been repeated in campaign ads ever since — “Lawmaker X supported the largest tax increase in Nevada history.”

If you can avoid it, the thinking goes, you should because you don’t want to be known as the Legislature that passed the largest tax increase in state history.

The other magic number is $1 billion, if for no other reason than $1 billion sounds much larger than, say, $999 million, or $836 million.

John Ritter, an executive with Focus Property Group, uttered the billion dollar figure during legislative leaders’ Thursday news conference. Asked how much the business community could contribute to whittle away the state’s $2.16 billion budget deficit, he estimated $1 billion.

Ritter was speaking for himself, not lawmakers, a point he made numerous times.

Asked about Ritter’s $1 billion figure, Assembly Speaker Barbara Buckley said: “I don’t think the B-word is sustainable.”

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A parade of witnesses testified in support of the Nevada Transportation Department’s $1 billion toll-lane project Thursday — the Las Vegas Chamber of Commerce, Nevada Resort Association, Nevada Highway Users Association, real estate agents, contractors and others.

The only people raising concerns during the Assembly Transportation Committee hearing were lawmakers, who questioned why the Transportation Department has spent millions on a plan the Legislature has yet to approve.

Assemblyman Kelvin Atkinson, chairman of the committee, noted that the department has $6 million in consultant contracts related to the project.

The department has spent just $2.3 million on consultants, said Transportation Director Susan Martinovich, arguing that the money hasn’t been wasted “even if this goes up in flames.”

Consultants have gathered data “to see if this is right for the state of Nevada,” she said.

Assembly Bill 524 would permit the department to join with private industry to add two lanes in each direction on portions of Interstate 15 and U.S. 95 in Las Vegas. A toll would be charged to travel in the new lanes.

A private company would design and build the toll road and collect the payments. The state would get a portion of the revenue if it reaches a certain level.

Without the private financing the state wouldn’t have money to expand the freeways for “20 years plus,” Martinovich said.

In an attempt to address the unpopularity of toll roads, the Transportation Department produced results from a survey of 600 voters. It showed 65 percent favored the public-private partnership and 30 percent would use the toll lanes at least once a week.

Assembly members questioned the validity of the survey when those surveyed didn’t yet know the amount of the toll. Frank Wilson, a consultant to the Transportation Department, said those surveyed felt a fair price would range from 50 cents to $6. Those polled expected to pay $3, he said.

The committee did not take a vote. It must approve the bill by April 10 or it dies.