Amity ends at Legislature

CARSON CITY -- The honeymoon is over between Republican Gov. Kenny Guinn and Assembly Democrats as they head for a showdown in the second half of the Nevada Legislature on college scholarships and taxes.

Assembly Majority Leader Richard Perkins opened the attack Thursday, criticizing Guinn for failing to deliver details on his health program with half the session gone and sending "inconsistent" signals on his veto of a minor bill to increase fees.

Perkins, D-Henderson, said that he's used to working with an experienced governor such as former Gov. Bob Miller and that Guinn and his executive staff haven't developed the necessary skills yet.

But an angry Guinn told a news conference that he answers to the people of Nevada and not some lawmakers.

"I work for the people of the state of Nevada and nobody else.

"I've been in crunch time all my life, and I don't run from any crunch time or anything else," he said, referring to the attack by Perkins.

In the first three months of the Guinn administration, little criticism came from Democrats. Perkins said there's been little communication from the governor's office on programs, despite many meetings.

Earlier this week, Guinn vetoed Assembly Bill 105, which permitted the state Real Estate Division to charge an increased fee for educational services. And he sent a message that he will reject any item to raise fees or taxes going into the general fund.

But Perkins said Guinn's spending program has "dozens" of fee increases by agencies that balance the budget. The majority leader said tuition costs charged to university students have been raised and that money goes into the general fund.

There also are higher fees for teacher licensing; for the consumer advocate amounting to $200,000; for the Division of Industrial Relations at $8 million; and for a variety of other programs.

"I don't know if he (Guinn) knows how many are in there (the budget). If they go away, we have to cut something," Perkins said.

But Guinn shot back. "They (Democrats) ought to learn the system. I just got here, but I know what the law is." He was referring to the fact that it's the university regents, not the governor, who set the tuition, and that many agencies already have the right in law to raise their fees.

He said he told Nevadans he would not raise taxes or fees and he means that. There may have been hundreds of bills submitted by agencies for fee increases before he assumed the job, the governor said, but he's going to use his veto.

That didn't faze Perkins. "We can't stop doing business because the governor threatens to veto bills. We have business to do," the majority leader said. He said if bills with fee increases have merit, the Democrats will support them despite a potential veto.

Perkins added that he thought the governor meant no increases in gaming, sales or property taxes in his State of the State message, not the minor fees charged by some agencies for services. "I'm sorry the governor put himself in a box," the majority leader said.

On the college scholarship program to be financed from the tobacco settlement, Perkins and the Democrats want to impose a means test so that children from wealthy families don't qualify. "During a period of budget restraint, it's fiscally irresponsible to give scholarships to millionaires."

"People in wheelchairs can't get their problems dealt with," but Guinn wants to permit well-off students a chance to get the extra money for school, Perkins said.

Guinn fired back: "What's the worst thing that can happen to us if we can get a kid for $2,500 from a rich family? They stay here and graduate from college, become under their (Democrats) definition rich alumni. What do they do? They give to the schools they attend. And their grandparents and parents make donations. If they have the capital to start businesses, they will hire the kids they went to schools with and create jobs."

Democrats support a college scholarship program that gives $25 million of the estimated $48 million tobacco payment a year to students, with the rest going to a variety of health plans.

Two months ago, Guinn unveiled his scholarship program calling for 50 percent of the money for education. He had not released details of where the other 50 percent should go, and Perkins criticized him for the delay.

The governor Thursday detailed his health program to spend $16 million a year for subsidizing insurance for long-term care and for pharmaceutical insurance for low-income senior citizens.

Also included is a "nest-egg protection" for middle-income seniors who buy an insurance policy for long-term care and then use the policy for at least three years. Under those conditions, the senior citizen would not be required to spend down all his assets to qualify for Medicaid.

Guinn would put aside $5 million to $7 million a year for an anti-tobacco program.

In the first year of the program, Guinn also would provide $5 million to help deliver special health care in rural Nevada.

Guinn also came under criticism from Perkins for a "sloppy" budget in which there have been more than 100 changes totaling more than $3 million. These changes prevent the money committees from approving spending programs.

The governor said that there may be some errors, but that budget analysts worked day and night putting together a new spending program in which $140 million had to be cut.

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