Democrats and Republicans square off on strategies to fix the state’s budget crisis
Most Democrats (“yes to new taxes”) and most Republicans (“no to new taxes”) are squaring off during the special session of the legislature. Senate Majority Leader Sen. Steven Horsford, D-Las Vegas, tells reporters that the state’s budget crisis will be fixed with cuts (not as deep as the Governor wants) as well as tax and fee increases. Many Republicans continue to claim the state must live within its budget as any Nevada family is forced to do. However, there appears to be a crack in the Republican “no new taxes” bulkhead. Senate Minority Leader Sen. Bill Raggio, R-Reno, and Republican Senator Randolph Townsend are openly attacking Governor Gibbons and his “no new taxes” mantra. Both Raggio and Townsend (and perhaps a few other Senate Republicans) appear to be ready to provide Senate Democrats with the 2/3 vote majority needed to override any Gibbons veto should he exercise it on tax-raising legislation. However, Raggio and Townsend are expected to moderate discussions on the extent of those tax increases.
Mining and gaming lobbyists have agreed that the state needs more revenue to provide constitutionally mandated services to the sick, the poor and the elderly, as well as for education. But thus far those lobbyists have offered up amounts that don’t come close to substantially bridging a nearly one billion dollar short term, and two billion dollar long-term gap in the state’s budget.
Meanwhile, Senate Majority Leader Senator Steven Horsford has already announced that democrats will not allow the depth of cuts demanded by Governor Gibbons on education spending or on a number of other service levels. Some ideas making the rounds on how to raise revenues include selling some state buildings and then leasing them back to the state, offering some quick cash to the state treasury. Also, slapping fees on banks that foreclose on homeowners, raising state park fees, declaring amnesty on delinquent tax payments and more vigorous efforts to collect taxes from long-running tax “dead beats.”