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twitterSpecial session of Legislature likely; tax hike not
Elections are one reason budget might be balanced with cuts
Tuesday, Nov. 3, 2009 | 2 a.m.
Sun Archives
- Editorial: Penny-wise, pound foolish (11-1-2009)
- Suddenly, Gibbons meeting with lawmakers, Democrats included (9-15-2009)
- Gibbons: Jobless fund nearly broke, Legislature to blame (9-8-2009)
- Gibbons bypasses lawmakers, names stimulus director (8-18-2009)
- Gibbons not planning on special session (8-11-2009)
- Gibbons ready to tear at legislative patch (8-9-2009)
- Legislature reins in Gibbons; Democrats cite incompetence (8-5-2009)
Sun Coverage
Carson City — The “no new taxes” slogan isn’t just for the governor anymore.
As tax revenue continues to plummet, a special legislative session to address a growing budget gap becomes more likely. And though there’s little agreement on how to fix the shortfall, a consensus is emerging — there’s little appetite among legislators to raise taxes.
Both Republicans and Democrats acknowledge that it will be difficult during an election year, and just five months after raising $1 billion in tax revenue, to touch the third-rail of Nevada politics — higher taxes. That means if the state’s shortfall continues to grow, more cuts to the state’s budget are likely.
Bill Raggio
“Nobody is going to want to come out and talk about raising taxes,” Senate Minority Leader Bill Raggio, R-Reno, said. “This is an election year; there’s a primary in June. From a political standpoint, it’s difficult to get anybody to support that.”
Democrats hold a two-thirds majority in the Assembly — the number needed to raise taxes — but two Republicans would be needed to reach the supermajority in the Senate. And Democrats themselves are saying tax hikes are unlikely.
“More than likely there would be additional reductions and short-term fixes,” Assemblywoman Sheila Leslie, D-Reno, said.
A Democratic lobbyist, speaking on condition of anonymity, pointed out the difficulty in passing last session’s tax increase, which followed $1 billion in cuts to spending or government growth.
Gibbons and his staff have said they want to see the tax revenue figures due this month before making a decision on a special session, which wouldn’t likely come until early December.
Some cuts could be made without full legislative approval, though some moves, such as additional furloughs or a straight reduction in employee pay, would require action by the full Legislature.
If a special session were called, it would pose another hurdle to higher taxes.
The governor calls and sets the agenda for the Legislature to consider during special sessions. Gibbons has maintained that by omitting it from the agenda he could prevent the Legislature from even considering raising taxes.
Although the legislative branch has disagreed with that reading of the state constitution, and said the Legislature can act with broad discretion on the topic at hand, the dispute has not been tested.
“Would we pass a budget with something of questionable constitutionality? The answer in the past has been no,” said Lorne Malkiewich, the Legislative Counsel Bureau director. “While we differ on our opinion of what can be done, it would come down to a legal case.”
In June 2008 Gibbons called a special session to address a budget shortfall, but in setting the agenda left the door open for legislators to raise taxes if they thought it was necessary. (They did not.)
Gibbons’ spokesman, Dan Burns, said the governor is unlikely to give the Legislature that option again.
“Gov. Gibbons has no appetite for allowing or opening the door for the Legislature to raise taxes,” Burns said, adding that in the governor’s view at least some of the 13.3 percent statewide unemployment rate is the result of higher taxes passed by the Legislature.
Legislative leaders said it’s too early to decide whether a special session will be needed.
Even if revenue continues to fall, some options remain. The state has a $160 million line of credit that it still hasn’t tapped. Additionally, some money can be moved from one fiscal year to another, which could allow the state to cover its expenses until the Legislature next meets in early 2011.
Although tax receipts have been down since the fiscal year started in July, the panel of business leaders that sets revenue projections, the Economic Forum, was already gloomy in its forecasts.
Assembly Speaker Barbara Buckley speaks at a Henderson Democratic Club meeting June 3 at the Painters Union Hall in Henderson.
For example, Assembly Speaker Barbara Buckley said, even though the sales tax numbers were down nearly 25 percent in August compared with a year ago, the state is down only $9 million compared with what the Economic Forum projected. “It’s way too soon to be speculating on what we will do,” Buckley said.
There’s widespread fear among state workers that the governor would propose another round of furloughs, on top of the one day a month — or 4.6 percent pay reduction — the Legislature approved.
“I don’t know of anything being considered,” Burns said. “There’s no blueprint. There’s nothing like that.”
Still, Raggio said, it would be hard to make large cuts without looking at salaries, which make up the largest portion of the state’s budget.
Though he thinks the state needs a full six months of tax returns before a decision on a special session can be made, “if you had to make cuts, it would primarily be in compensation,” he said.
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"Legislative leaders said it's too early to decide whether a special session will be needed."
How can they raise money if they do not meet.
The Dems need more money
Tax and spend
Is that solution working for you?
option A: cut the bureaucracy in half option B: raise taxes. option C: DO NOTHING.
Did you say "no new Texas".
"Even if revenue continues to fall, some options remain. The state has a $160 million line of credit that it still hasn't tapped. Additionally, some money can be moved from one fiscal year to another, which could allow the state to cover its expenses until the Legislature next meets in early 2011."
You pampas politicians need to get a clue and fire the public employees not working or producing and deport from our borders all illegal immigrants and stop paying for illegal immigrants and career welfare recipients, budget crisis fixed.
Borrowing and continuing with the policies that got us here in the first place isn't going to accomplish anything but delay the inevitable; fixing what didn't work. If the past choices worked as promised; we wouldn't be in the situation we're in today.
I guess noone wants to talk about the fact that some public employees dont actually use General Fund money. And the ones that do, such as the Guv's cronies in the prison all were exempted from the furloughs. Lets not foregt that almost all of the General Fund goes to the school districts...which ought to be buried under usage fees in my opinion. If you want to have the babies, prepare to pay. Unfortuantely, that would be politically unpopular so instead we seek to create a new underclass by reducing public employees salaries...many of whom dont even affect the budget.
its2hot...
The Pampas is in Argentina. We'll let them worry about the Pampas pol's. Although, they have a HOT President. But, she is having her own political problems.
As for your other suggestions, yes, let's fire all those darn lazy public employees. No more Firemen, Police, Teachers, etc...THEY ARE ALL LAZY! Who needs em, right? And those pesky low-life's that collect benefits from the Government, shouldn't they GET A JOB??? Lazy low life scum!
Wait a minute; There aren't any jobs!?!?!
gmag39...thats right we dont need basic services, thanks retard.
Hopefully in this session Gov Gibbons will conduct due diligence and advise the legislators that he has committed malpractices.
As a result of Gov. Gibbons malpractices, 52 claimants have been named in the federal courts against the State of Nevada. These claimants have received judgments for State of Nevada to pay liability policy limits.
We know that the ranks of the 52 claimants are being added to daily as State of Nevada is forthcoming with more information of malpractices. YOUR RIGHT! 702-787-0002
brak92,
Sorry, there, genius.
Have you heard of the word
FACETIOUS?
Can you say it with me?
Fah-see-shus.
Sure. I knew you could. Have a beautiful day in your neighborhood!
Gmag39:
Yes I would say fire them if they're not working or producing anything useful or meaningful.
If the police have spare time on their hands and they can have 30 or more police cars with officers arrive on a scene when it involves an officer being shot or when one of there is involved in a wreck and they can waste our taxpayer dollars investigating that incident, then their priorities are screwed up and they need to be fired.
Crime is on the rise yet they swarm internal incidents and investigate their own shortfalls and waste our taxpayer dollars. When it comes to the career criminal and the blatant obvious criminals within their assigned jurisdiction, they're reactive not proactive and are spending their time doing something other than what they're hired to do in the first place, cleanup the scum that is desecrating our streets.
It isn't rocket science, you or I can drive down Tropicana Blvd, or anywhere where Democrats have infested the community and find the criminals without even trying, yet they're free to walk the streets and further terrorize and desecrate the communities. It is their job to jail them and it is the prosecutor's job to put them in jail.
I hear it all and I know the officers morale is low because the system sets them free, I don't care at least we know their doing their job and we'll soon figure out the overpaid prosecutors aren't doing their job.
Gmag39:
Yes I would say fire them if they're not working or producing anything useful or meaningful.
If the police have spare time on their hands and they can have 30 or more police cars with officers arrive on a scene when it involves an officer being shot or when one of there is involved in a wreck and they can waste our taxpayer dollars investigating that incident, then their priorities are screwed up and they need to be fired.
Crime is on the rise yet they swarm internal incidents and investigate their own shortfalls and waste our taxpayer dollars. When it comes to the career criminal and the blatant obvious criminals within their assigned jurisdiction, they're reactive not proactive and are spending their time doing something other than what they're hired to do in the first place, cleanup the scum that is desecrating our streets.
It isn't rocket science, you or I can drive down Tropicana Blvd, or anywhere where Democrats have infested the community and find the criminals without even trying, yet they're free to walk the streets and further terrorize and desecrate the communities. It is their job to jail them and it is the prosecutor's job to put them in jail.
I hear it all and I know the officers morale is low because the system sets them free, I don't care at least we know their doing their job and we'll soon figure out the overpaid prosecutors aren't doing their job.
Pay cuts to State agencies that are funded out of the General Fund may make sense. Pay cuts for those agencies that are federally funded and/or funded by fees make no sense. Once federal funds are not needed (due to pay or personnel cuts), they will be hard to get in the future. Many state programs need to meet strict federal guidelines and cutting staff is not a wise decision.
Times are hard and likely to stay that way for awhile, and raising taxes will simply drive more people over the edge. State govt needs to get a handle on its expenditures and quit looking for excuses to raise taxes to support its spend-n-tax habit. The focus should be on maintaining essential services (emergency, education, basic subsistence & foster care, vital commercial regulation enforcement) but better incentivizing provider performance and encouraging a positive recipient response (to get off the dole, take responsibility, make an effort). And penalize or cut off those who abuse the system.
God FORBID that Wal-Mart be forced to pay its fair share through higher taxes.
You know things are bad when even tax & spend Democrats say this is a bad idea. Wow! Could this be LOL We conservatives ALWAYS knew this was a bad idea while the Democrats seem to only want to not raise taxes for political reasons. Hey guys listen, No new taxes!! Start living within your means or we're going to change you out with people who can legislate effectively. Yes, it can be done and if you don't think it can then your part of the problem and need to go. Nevada deserves better. It's always been my observation that when we have Democrats running things, outrageous tax and spend policies ensues that gets us in these messes almost 100% of the time. Hmmm, I wonder what the solution is....
Nevada is a failed state. They're just re-arranging the deck chairs on the Titanic. Libertarianism is as Libertarianism does.
election year = no new taxes
news flash - its too late
Republican Solution = Abolish Public Safety, Education, and Health Care.
Gold mines will take $8 Billion dollars out of Nevada in 2009 at $1050 per oz. The LCB estimate of fees collected from them (not counting sales taxes from hourly worker expenditures) will be $23-29 million. This is a 3% levy for the foreign owned theft of our resources.
aoxomoxa -- If you're that unhappy about the mining tax, you (or any citizen) has the power under the Constitution to petition it to be changed. The current mine tax is in the Constitution and cannot be otherwise changed without an amendment.
NDOT is a non general fund agency...but they are hit with furloughs.....
no money being saved.
Salary cuts by 10 percent would help the state balance the budget.
Here are a few places to look.....
Salaries for Clark County
http://transparentnevada.com/salaries/20...
Salaries for the City of Henderson
http://transparentnevada.com/salaries/20...
Salaries for the City of Las Vegas
http://transparentnevada.com/salaries/20...
Hope this helps!