Facebook
Fark
Digg
Reddit
StumbleLegislature cancels study of state’s tax structure
Friday, July 30, 2010 | 2:05 a.m.
CARSON CITY — A study by a national firm to chart the possible future tax structure of Nevada and potential tax increases has been cancelled by the Legislature.
Lorne Malkiewich, director of the legislative Counsel Bureau, said Moody’s Analytics failed to make any progress analyzing the state’s tax structure and presenting recommendations.
Moody’s will not be paid the $153,000 for that part of its contract.
The firm will continue working with the Nevada Vision Stakeholder Group in developing a quality-of-life study on how the state should look in five, 10 and 15 years. It will be paid $99,925 for that portion of the contract.
Malkiewich said the stakeholder group will have several more meetings with Moody’s, and the final report on quality of life will be completed by Sept. 15.
Malkiewich said he talked with state Senate Majority Leader Steven Horsford, D-Las Vegas, about the decision to amend the contract. Horsford was one of the main advocates of the study, and Moody’s won out in the competition for the contract late last year.
Nevada faces a $3 billion deficit in the next biennium. But both candidates for governor — Democrat Rory Reid and Republican Brian Sandoval — have said they will not raise taxes.
The 2011 Legislature will have to grapple on how the deficiency will be overcome — either by massive reductions in government programs or major tax increases — or some combination of both.
Malkiewich said it “was the feeling it (the tax study) could not be done,” and there was a mutual agreement it could not be completed.
A notice of default was delivered to Moody’s earlier this month for the entire contract. Discussions have been under way between both parties to resolve the problem.
A media representative for Moody’s could not be reached for comment.
The tax study would have included an analysis of the different taxes, the allocation of the revenue, the stability of the taxes, the adequacy of the taxes, the burden on taxpayers and the earmarking of tax revenue.
Discussion: comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
No trusted comments have been posted.
Post a comment
Most Popular
- Viewed
- Discussed
- E-mailed
- UNLV can move forward without the burden of losing streak to San Diego State
- A wife’s wisdom shows birth control issue needn’t be divisive
- Surprise links, negotiated deals addressed by commissioners
- Motorcycle accident claims life of man in northeast valley
- Hope and change and … what’s missing?
- New York mayor has the right idea
- We don’t need a CEO in charge
- Paying our own way
- Country has ‘given’ citizens a lot
- Jerry Tarkanian: Mike Moser impresses yet again on a day to remember former Rebel greats
Blogs
The Kats Report
Color from scene at Thomas & Mack: We have a wire job! Rebels win, and Louie Armstrong sings!
South Point owner Michael Gaughan's take on 'Vegas Stripped': 'I'll give it an 8' (4 Comments)
Author relishes writing the life story of ‘larger-than-life’ Oscar Goodman (3 Comments)
Elsewhere
Landowner: All roads could lead to Uxbridge casino
Revel reveals smoke-free casino opening
Cirque du Soleil show in Sands China casino to close this month
Meet the woman behind Sheldon Adelson
The Sun
Locally owned and independent for more than 50 years.
I guess they did not like the results.
They wanted it to say, "We need to be like Sweden and have a tax rate around 50% of all income."
The Nevada Vision Stakeholder Group is comprised of 20 members with about half from the public sector and unions. While part of their focus is on how to diversify our economy and improve education, their focus is also on how to improve obesity and reduce smoking among Nevadans. Not my idea of a future vision.
What we need is a group that fully immerses themselves into creating a strong business and economic foundation that does not depend on any one industry. For example, data centers are a growth industry and require mega power. Since we have an abundance of PV, why not focus on getting more data center operations to land in Nevada? We need to focus on our State's strengths (and there are many), and leverage them into opportunties--not on obesity and smoking.
Bottom line: Change the structure of the group. Not really sure how people representing unions and public sector can contribute to diversfying our economy.
Good thing Geoff already did a tax study for the state (free of charge) http://npri.org/publications/one-sound-s...
Uddeboda sounds like someone who would like to immigrate to Nevada but doesn't feel that he[?] could survive without a bigger slice of of other folks money.
We don't need another tax study. We need elected officals with some vision who are willing to call a spade a spade.
gobeavs14,
You are on the right track about Data Centers but something that most don't know about Vegas.
We already have some of the largest and most technology advanced Data Centers in the world here. They have been for the last ten years.
Most any national or international company has equipment in the centers here including the U.S. government.
We are talking close to a million square feet total is being used by these major data centers right here in Las Vegas.
The best part is they where started years ago by one small business person that saw the need and had the vision that was and still is a local of Las Vegas.
Your absolutely correct Patrick, the problem with this 26page so called solution is that the report is long on blame and short on details. The report was also bought and paid for by the Las Vegas Chamber of Commerce and your boy Sheldon, thus it is a tainted and partisan 26 pages. As you said it was produced for "free" and it looks like it. Garbage in Garbage out.
So Nevada politicians in both parties are positioned to cut State government by 54%. This will be something to see. Is there a Solomon in the crowd?
Tom Shermspun
Great Ruins of Las Vegas Tour
Jbond, what type of tax report would you find acceptable? Since you don't want partisan reports, anything by Brookings or PlAN is automatically out. Just curious, but what is acceptable to you, since you make automatic judgments on reports based on who says what, rather than what is being said.
Thomas,
The Las Vegas Sun misled readers in the past about the budget situation. They have stated that we have a $3 billion shortfall out of a $6.6 billion budget (not this article), leading readers to calculate that expenditures will have to be cut by 50 percent or so unless taxes are raised and renewed. This isn't true.
We'll find out the budget numbers soon enough, but don't worry, it is very unlikely that the projections will say $3 billion in revenue collection over the 2011-13 budget...
The shortfall will probably be between $1 billion and $1.5 billion, or less, when proper math is used. This is my guesstimate, as no official estimates have been made.
More on the budget shortfall: http://www.writeonnevada.com/2010/04/sho... (includes video of Tom Lehrer singing about math)
Patrick, ok I get it. It's not really a $3B shortfall in the Nevada State Budget because many of the cuts have already been made. Just like the temporary Bush tax cuts. The cuts have already been made, so it's really a tax increase when the cuts aren't maintained.
BTW: When is your group, supposedly fiscal conservatives, going to publicly come out in favor of SB 398, which is favored by the SAGE Commission? And why do you think Rory Reid and Brian Sandoval are ducking making comments on SB 398?
Comment removed by moderator. Comment was intended to be published on another article.
Moody's incompetence is a prime example of how private enterprise is not always the panacea for providing government services.
It should also serve as an example of hiring consultants from outside the state to analyze complex fiscal metrics. There simply was not enough time for an outside consultant to learn our Rubix Cube of taxes and then provide recommendations on how to fix it.
Patrick, the analysis used to get to the $3 billion shortfall is based on existing law -- what will happen if there are no changes to what is currently in statute. It's likely a given that furloughs and other cuts will be continued past the end of this year, but because the furloughs are only part of law until June 30 of next year, they have to be counted as an additional expense in the next budget cycle until the law is changed again to provide for furloughs going forward.
the low bid on the tax study was $31,000 from a long time nevadan. moody's got paid three times that for expenses, while producing nothing. why?
patrick's $1.5B means the old cuts are made permanent. the state's $3B means they are not. the problem with any tax study is that you first have to decide what you are going to spend, before you can decide the best way to fund it.
Richard,
Here is what Reid is proposing for immigration reform: http://www.docstoc.com/docs/36347684/Sis...
"In Phase I, eligible applicants will be registered, fingerprinted, screened and considered for an interim "Lawful Prospective Immigrant" (LPI) status that allows them to receive a tamper resistant credential allowing for work and travel outside the US."
You don't want to even think about the costs associated with this and the additional burden on our already depleted budget.
I wonder who's brother-in-law in Carson City made a few bucks with the inital award of the contract????
We have the best government money can buy.
Taxation is theft, a morally wrong that goes unpunished -- what's to study?
Criminalize taxation!
: {
The last line is where we should look. THE EARMARKING OF REVENUES means that past Legislatures have ham-strung any and all possibilities for refining budgets. Something similar happens with the sales tax--it is divided up with predetermined calculations and percentages WITHOUT REGARD FOR ESSENTIAL SERVICES. Earmarking means there is no way to reroute revenues for changing expenditures--takes the elasticity out of life--if you have 4% of this now, you can't have more or less than 4% of it in 20 years.
HAS THE AG INDICTED KATE MARSHALL FOR ABUSING CUSTODIAL FUNDS YET? Why is Kate Marshall taking trust funds people are saving for college education and diverting them to Millenium Scholarships??? We CANNOT AFFORD to pay this off next year and the year after. We have enough to pay for already.