Nevada governor dismisses panel’s proposal to change tax structure, government over 20 years

Group proposing Nevada tax, government changes

CARSON CITY, Nev. — A study group appointed by majority Democrats in the Nevada Legislature is proposing sweeping changes to raise taxes and reshape state government to improve the quality of life in the state over the next 20 years.

A preliminary report due for discussion Friday by the 20-member Nevada Vision Stakeholders Group offers hundreds of goals — but few specifics about how to reach them. The legislation creating the group called for recommendations but left it to legislators to figure out how to change taxes and implement the goals.

Republican Gov. Jim Gibbons quickly dismissed the proposals to change Nevada’s tax structure and diversify an economy now largely based on tourism and mining.

“You surprised?” Gibbons scoffed.

Gibbons vetoed a measure last year to allow the Legislature to spend money to hire a consulting firm to review Nevada’s revenues and spending, and to work with a citizens group to create a plan to build a better state over the next 20 years.

Gibbons had predicted the results would include tax increases that will scare away businesses that want to relocate in the state.

“These companies already are bypassing Nevada because of the uncertainty about our future tax structure,” Gibbons said. “It is affecting our ability to recruit businesses.”

A 16-member, Democrat-controlled legislative committee went ahead and used a contingency fund to hire Moody’s Analytics for $253,000 to conduct a separate tax study. A preliminary report of those results is due by June 3.

The preliminary Vision Stakeholders Group report says that despite tight state and local budgets, now is the time to implement structural reforms.

“Nevada needs to change its course, lest the obstacles that it faces become insurmountable in the years ahead,” the draft study said.

Recommendations are for Nevada to secure more federal funding, build an interstate highway between Phoenix and Las Vegas, and construct high-speed rail systems from southern Nevada to Southern California and from Reno to Las Vegas.

The study also proposes to improve Nevadans’ health by reducing smoking and obesity rates, getting more children immunized and insured, and increasing the number of people who exercise.

Panelist Douglas Busselman, executive vice president of the Nevada Farm Bureau, denounced the draft report as “an extremely disjointed set of politically correct concepts” aimed at creating “a government-centric outcome.”

Busselman said the draft report has the Vision Stakeholders’ name on it but really is the perspective of the Moody’s consultant.

State Senate Majority Leader Steven Horsford, D-North Las Vegas, sought the tax study and creation of the Stakeholders Group.

He has predicted state revenues in 2011 will be more than $3 billion less than needed to fund government at pre-recession levels. He has said finding a broad-based revenue plan to fund schools and government properly will be the No. 1 issue facing the 2011 Legislature.

Republicans Brian Sandoval and Mike Montandon, who are vying against Gibbons in the June 8 GOP primary, have pledged not to increase taxes. They also say they won’t reauthorize $800 million in existing taxes that expire next year.

Democratic gubernatorial candidate Rory Reid has not announced his final position on taxes, but his spokesman said he will look at the panel recommendations.

Reid has said he’ll present a budget plan for 2011 before the November general election.

Information from: Las Vegas Review-Journal, www.lvrj.com