Brian Sandoval: ‘Raising taxes the worst thing we could do’

By J. Patrick Coolican

Published Wednesday, Dec. 29, 2010 | 7:49 a.m.

Updated Wednesday, Dec. 29, 2010 | 2:13 p.m.

Gov.-elect Brian Sandoval reiterated today that he would veto any tax increase the Legislature passes as it grapples with a budget deficit thought to be $2 billion or more.

"Raising taxes would be the worst thing we could do," he said. Doing so would thwart his efforts to attract business to the state and keep the ones here from going under, he said.

"Who's going to pay them?" he asked of new taxes.

In a news conference in Las Vegas, Sandoval, a Republican, offered no specifics about what would be cut to balance the budget. He said he was in ongoing discussions with his staff, state departments and legislators.

The law requires him to submit a budget early next month.

The state's official forecasting body, the Economic Forum, has said there will be $5.3 billion to spend in the next two years, about $1.1 billion less than in the current two-year budget cycle. But to continue current services and pay for contractual raises and increased caseloads for programs for the impoverished, such as Medicaid, state agencies have proposed an $8.3 billion budget.

Said to be on the list of potential cuts: Reducing grants to senior citizens, closing museums and shutting down the ancient state prison in Carson City.

Outgoing Gov. Jim Gibbons directed his agencies to submit proposed budgets with 10 percent reductions, though Assembly Speaker John Oceguera, a Democrat, told the Clark County Commission that a 10 percent cut would hurt services and still not balance the budget. A gap of 7 percentage points would remain between revenue and expenses.

Sandoval's budget is expected to take revenue from local governments or shift significant responsibilities to them. Sandoval wouldn't say where his latest thinking is on the issue.

Sandoval said he looks forward to improving education in the state, citing more school choice, more charter schools and merit pay.

He said Nevadans should not equate money spent with that of education performance.

As is, education comprises 53 percent of the state budget. Even at that share of spending, the state is 46th nationwide in higher education funding per capita; 45th in residents with a bachelor’s degree; and 41st in the number of 18- to 24-year-olds who enroll in state universities.

Despite this mediocrity in education, Nevada is poised to attract business because of its low tax, lightly regulated political climate, Sandoval said.

He said he carries in his briefcase a list of businesses to recruit to Nevada.

"If Nevada were a stock, I'd buy," he said.

The governor, who has a long resume as state assemblyman, attorney general, gaming commission chairman and federal judge, showed off his considerable political skills. He deflected questions, remembered names of reporters, dropped names of Republicans and Democrats alike.

He declined to compare himself to Gibbons, whose policy preferences would appear to be similar to Sandoval, who beat Gibbons in the Republican primary -- a first for a Nevada governor.