Las Vegas Sun

March 28, 2024

Assembly leaders disagree on status of impasse

CARSON CITY -- Assembly Speaker Richard Perkins, D-Henderson, says he has started a series of meetings with legislators in both houses and in both parties to talk about a possible compromise tax plan to release money to the state's public schools.

But Assembly Minority Leader Lynn Hettrick, R-Minden, said "nobody has contacted me as far as negotiating and reaching out."

An impasse extended through the first special legislative session that ended last week, and it appears there has not been any movement yet as lawmakers get ready to reconvene at a second special session June 25.

In a press release Tuesday, Perkins said there were a "handful of legislators who have bragged about causing a second special session, who may not be convinced by anything we propose, and that is unfortunate."

The speaker said he hopes reasonable people can get together and talk about options and "these obstructionists can either be persuaded or will be so small in number that they will not be able to impede our progress."

But Hettrick said the proposed $869 million tax increase over the next two years is too high.

"We're still where we were before," he said.

He is working on suggestions on how to lower the increases in the budget that was approved by both houses and signed by the governor.

Because a two-thirds majority is needed to pass the tax plan, Republicans in the Assembly have been able to block any tax increase. In the Senate, the Republicans have been divided, with Senate Majority Leader Bill Raggio, R-Reno, leading the drive to get it passed. He fell one vote short last week.

Republicans have a 12-9 majority in the Senate, and 14 votes are needed for approval.

Perkins said those Republicans who want to reduce the budget should reconsider their position.

"The governor has said very clearly that he will not reopen the budget, which was approved by both parties in both houses and signed into law," he said.

"The issue now is funding our schools and it is critical that we move quickly to approve the education budget so our school districts can hire the teachers they need and plan for the next school year." Hettrick said: "We tried to pass the distributive school fund and the Democrats voted it down in committee. We're happy to vote for (it) now and nobody is asking to cut any school budgets.

"They (the Democrats) want to use the kids as political pawns."

He said the Democrats are trying to use the schools as leverage to get the taxes passed.

The Democrats wanted to tie the $1.6 billion biennial school aid bill to the tax bill to force opponents to accept the tax plan. But Hettrick said the school aid bill can be passed separately and the state can release the money to the schools.

"If they're so worried about funding and education, why didn't (the Democrats) vote it out?" he asked, referring to the vote in the Assembly Ways and Means Committee when Hettrick moved to approve the money bill for the schools. The Democrats voted it down.

Democrats need 28 votes in the Assembly to pass a tax bill. But the breakdown is 23 Democrats and 19 Republicans. And so far, at least 15 GOP members are standing firm.

Perkins said he believes a tax plan that includes increases in the gross gaming tax, a franchise fee for big businesses and a banking franchise tax has the most promise.

"Big businesses and banks pay these or similar taxes in almost every other state in the nation," Perkins said. "I find it hard to understand why there are those who would put our education at risk before they would agree to tax big business, banks and casinos."

Hettrick said that mix of taxes sounds better, but that the sticking point is the $869 million increase. He said the education funding bill could be passed and it would take priority over other government spending.

So the schools could be funded, he said, and the session could focus on taxes, he said.

Because the increase in taxes would be phased in over the next two years, Hettrick said the tax package is actually a $1 billion jump in taxes in fiscal 2005-2006.

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