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Senate overrides Gibbons’ veto of $781 million tax package

Gibbons criticizes ‘liberal leadership,’ vetoes 31st bill this session

AP Photo/Brad Horn, Nevada Appeal

Gov. Jim Gibbons vetoes bills on the Capitol steps in Carson City at the Nevada Legislature on Thursday.

By David McGrath Schwartz (contact)

Published Thursday, May 28, 2009 | 5:18 p.m.

Updated Thursday, May 28, 2009 | 10:34 p.m.

Gibbons vetoes tax bills

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The Senate overrode Gov. Jim Gibbons' veto of a $781 million tax package Thursday night.

After the clerk read Gibbons' veto message, where he warned the Legislature of setting a "dangerous precedent," the Senate voted 17-4 to pass the bill anyway. It was the same vote the Senate had when it passed the tax package.

Sens. Barbara Cegavske, Maurice Washington, Mark Amodei and Mike McGinness all voted against overriding Gibbons' veto.

Senate Minority Leader Bill Raggio, R-Reno, and Sen. Warren Hardy, R-Las Vegas, both said Gibbons did not try and get them to sustain his veto.

The Legislature still has to override some of Gibbons' vetoes of portions of the spending bill, and is scheduled to meet again Friday morning. The session ends at midnight Monday.

The tax plan increases sales taxes, business levies and license fees, and vehicle registration fees. A "sunset" clause would allow most of the increased taxes to be erased in 2011.

The Republican governor had long said he would reject the plan.

"It is a sad day, but a historic day for the citizens of Nevada," Gibbons said in a statement Thursday evening. "I appreciate the hard work a handful of conservative legislators did, with some success, trying to control the 'out of control spending' and crushing tax hikes of the liberal leadership in the Legislature."

The governor vetoed 20 bills Thursday -- many that called for additional fees -- bringing the total for this session to 31 vetoed bills.

Also Thursday, the Legislature finalized language to lessen public employee pensions and retiree health benefits, as well as to change the rules over collective bargaining. The passage of the bill was necessary for Republican votes to override Gibbons' veto of the tax increase.

Senate Bill 427 was heard and passed out of the Senate Finance Committee on Thursday. It passed the Senate at about 8:35 p.m. Thursday. It then passed the Assembly and now heads to the governor, where he's likely to sign it.

Coffin and Sen. Maggie Carlton, D-Las Vegas, voted against it. She praised those who negotiated the changes, but said she was taught that the next generation should have things better.

"Something inside me tells me this just isn't right," she said.

Sen. Warren Hardy, R-Las Vegas, who was the Republicans lead negotiator for most of the session, said the reforms were necessary to protect the pension and health benefit funds.

"Both parties, both houses, worked hard to keep these systems whole, to make sure we can keep systems we can count on in the future," he said.

Sen. Bob Coffin, D-Las Vegas, said he supported the changes to the pension system - called PERS - but worried that increasing the requirement that new hires work for 15 years before qualifying for a health benefit would hurt higher education recruitment.

"This retards our young growing universities at a time they need help," he said. "God knows we’ve kicked them in the teeth enough this session."

Senate Majority Leader Steven Horsford, D-Las Vegas, pointed out that the changes only affected new hires.

"First and foremost, we protected the programs for actives and current retirees," he said. "For new employees, it’s going to be a major shift. Young people that we're trying to get into public service, I hope in future sessions we can show these jobs are still available and valuable. We still need teachers, health and education professionals."

Only employees hired after January 1, 2010, would be affected by the Public Employee Retirement System and Public Employment Benefit Program changes.

The key provisions are:

- State workers would have to work 30 years to accrue the full benefit. Currently, they have to work 28 years.

- Cost of living increases would be lowered to 4 percent, from 5 percent.

- The health insurance subsidy for retired state workers was scaled back. Instead of new workers beginning to qualify for the benefit after five years, they would have to work for 15 years to start qualifying.

- During contract negotiations for local government employees, arbitrators would have to look at state workers' pay. Local governments would also be required to hold full fiscal hearings.

The Associated Press contributed to this story.

Discussion: 20 comments so far…

By mywallet700

5/28/09 at 6:56 p.m.

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Good for Gibbons. He did what he said he would. A rarity for a politician.
By Harley

5/28/09 at 7 p.m.

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ANY system funded by THEFT through taxation deserves to FAIL.
By Lochnar

5/28/09 at 7:08 p.m.

Comment removed by staff.
By scherf_com

5/28/09 at 7:52 p.m.

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CONGRATS GOV. GIBBONS - you did the right thing!
Your vetoes are excellent! Good that someone stands up for the right things.
By Bertsos

5/28/09 at 8:02 p.m.

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Gibbons is hell bent on making Nevada 3rd world status...........this jackball needs to be voted out of office immediately.
By ksand99

5/28/09 at 8:30 p.m.

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"He did what he said he would."

Actually, he didn't. That's a lie.

He signed an oath swearing to veto ANY and ALL attempts to raise taxes. He did not veto the room tax increase. He lied.

He said he would listen to the will of the voters, but then vetoed two tax increases supported by the voters in Washoe. Again, he lied.

Double standards and lies, that's Gibbons' governing philosophy.
By CronkyVoddy

5/28/09 at 8:31 p.m.

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Gibbons is an idiot; like most of the posters here, LOL. He will not be reelected,but in the meantime, Nevada citizens, children and schools, police and fireman services will continue to be sub par while the casino and mining executives get rich.

Since when is taxation theft? This is how we pay for having a civilization. What do you suggest in its place, a lottery?
By mar100

5/28/09 at 8:56 p.m.

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The veto by Governer Gibbons was the right thing to do. Raising taxes on the working class and business during a recession was dumb. Only Democrat politicans would do something like this, remember its all for the children including the F Street underpass...
By gmag39

5/28/09 at 9:12 p.m.

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Hey harley; Related to Gordon Kahl?
Poor Gym Gibbins. Unloved, unpopular, unremarkable and unwanted by the MAJORITY OF NEVADA. Unbelievable.
By neiman1

5/28/09 at 10:09 p.m.

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Why should taxpayers grant health retirement benefits for even working 15 years for the government. If 30 years is necessary for full retirement, why not a sliding scale from 15 years to 30 years for health benefits as well?

I am glad they are adjusting the retirement and HOPE the cost of living adjustment is a maximum and not automatic. For the last two years we have had negative cost of living percentages. To grant increases about actual inflation is a rip.

I wish the tax increases could stay vetoed, they will hurt the taxpayer and hurt the economy. The $787 million increase in funds to the state are $787 million OUT of our pockets and not spendable by the wage earners.
By dave202

5/28/09 at 10:47 p.m.

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God bless Gov. Gibbons. The Republicans who voted for the override should be ashamed. This is a sad day for Nevada.
By gmag39

5/28/09 at 10:56 p.m.

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No, Dave, it's a good day when common sense prevails. THAT is why you had, at the end of the day, some pretty fair bipartisan cooperation to veto Gov'ner Gym. Regardless of what some of you folks want, the state does have to stay open. THANKS AGAIN, Legislators, for doing the dirty work.
By delcamp2

5/28/09 at 10:59 p.m.

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Thanks Governor Gibbons, but no thanks to the Senate who overrode his veto. I casn't believe they want to burden more Nevada famlies with taxes...shame...
By revtomperl

5/29/09 at 12:17 a.m.

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So now the voters get a semi-adequate budget and we still have one of the worst governors in the history of the universe!
By Teaser

5/29/09 at 8:31 a.m.

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If all you want is someone to say "cut budgets," then you can teach a 4-year-old to say that. Put the 4-year-old in charge of Nevada. You won't notice any difference.
By lassen122

5/29/09 at 9:05 a.m.

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Gov. Gibbons concluded his seeming renewal of his "no new taxes" vow with this: "When I ran for governor, I told the people of this state my views on taxes. I am honored that they elected me and trusted me to keep my promise to them." Honored, sure. But apparently not enough to actually keep the promise he made to them"in writing.Because what the governor very disingenuously failed to tell the people of Nevada in his State of the State Address was that he has a whopping $292 million tax increase included in the budget he's preparing to submit to the Legislature.

Now to put that in a little bit of perspective, recall that in 2003 Gibbons slammed then-Gov. Kenny Guinn for proposing a tax increase of around $700 million - $300 million of which, in 2005, Guinn rebated back to taxpayers. That tax hike in 2003 was, at the time, the largest tax hike in history. This one being proposed by Gibbons may well be the second highest.

Which I guess makes Gibbons the Avis of Nevada Republican governors who propose tax hikes: #2 but trying harder.

By CHUCKLES MUTH
By gmag39

5/29/09 at 9:39 a.m.

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Gov'ner! The state is on fire!
"Sorry. Promised to use less water. heh heh."
But Gym, that was before the state started burning; surely you want to put out the fire?
"Sorry. Promised to use less water. heh heh."
Please, Gov'ner; our homes, our businesses, they will all BURN!
"Sorry. Promised to use less water. heh heh."
"Bad to use water in a drought."
But sir, there will not be anything LEFT in Nevada if we don't put out the fire. We won't NEED any water!
"Sorry. Promised to use less water. heh heh."
By wondering

5/29/09 at 9:51 a.m.

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Gibbons vetoed so that he could continue to say No New Taxes even though he knows Nevada needs it to survive. He can now say that "I didn't do it" and use that for his 2010 reelection bid. Watching the BS and just wondering.
By Our_Linn

5/30/09 at 1:03 a.m.

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Well, the Sun and other Nevada liberals can sleep well tonight knowing they finally got the tax increases they so desperately wanted.