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 last night (Monday) between the Nevada State Education Association and 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.

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