Talks on taxes collapse, to resume today

By David McGrath Schwartz

Published Monday, May 18, 2009 | 8 p.m.

Updated Tuesday, May 19, 2009 | 12:39 a.m.

Legislators enter Tuesday without an agreement on a tax package after talks about reforms to potential public employee compensation collapsed late Monday.

Democrats publicly said talks were progressing. Senate Republicans -- at least two of whom are needed for a tax increase to pass -- weren't so optimistic.

"It hasn't blown up yet, but the fuse is lit," said Sen. Warren Hardy, R-Las Vegas. "It feels like we're aiming at a little bit of a moving target."

Earlier in the day, legislators were more optimistic. But talk devolved as the day went on, and Democrats pulled back from concessions they were willing to make to get Republican votes on a tax package.

Legislators have laid out four separate pieces of revenue to raise an expected $780 million to pay for the spending lawmakers have approved.

The Assembly passed the first portion -- a doubling of the $100 business license fee, and an additional $200 per business location -- on Monday.

But Republicans have insisted on reforming three things:

- Public Employee Retirement System: Republicans want to rein in pensions by changing the rules for new hires to the retirement system.

- Public Employees' Benefits Program: Republicans want to limit health benefits for retired public employees.

- Collective bargaining: Republicans want to increase transparency and accountability for local governments when they negotiate contracts for police, fire and other state workers.

Legislators are working under a compressed deadline to pass spending and tax bills to get them to Gov. Jim Gibbons. Legislators are aiming to pass a package by Thursday, though some say they could theoretically make the deadline if they pass a package on Sunday. (One observer dismissed that talk. "The timeline they're working with is like an engineer who builds a bridge that can hold a 5,000-pound truck, and they plan to drive a 5,000 pound truck over it. Never mind the driver weighs 210 pounds.)

Legislators broke Monday night to meet at 8 a.m. Tuesday.