The Associated Press

Tue, May 20, 2008 (5:57 a.m.)

The Nevada teachers union has reached a deal to forgo its petition initiative to increase taxes on casinos in favor of increased room taxes.

The agreement forged Monday night between the Nevada State Education Association and major Las Vegas casinos would keep the teacher-backed initiative to raise casino taxes by 44 percent off the November ballot.

Teachers instead will seek a 3 percent increase in the hotel room tax rate, to a maximum of 13 percent. It would appear on the ballot as an advisory question before legislative approval is sought in 2009.

Under the proposal reached with the help of legislative leaders, proceeds from the room tax hike would offset a looming budget shortfall for the 2009-2011 biennium.

After that it would be used for teacher salaries and student achievement.

The teachers union also will begin collecting signatures to force a change in state law to raise the room tax rate in 2011 in case they fail to convince county commissions to put the advisory question on the ballot, or the Legislature fails to act.

The deal halts the teachers union effort to increase the gaming tax from 6.75 percent to 9.75 percent, for casinos grossing at least $1 million a month.

Union president Lynn Warne said the group had collected enough signatures to qualify that petition despite a well-organized opposition campaign.

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Information from: Reno Gazette-Journal, http://www.rgj.com