A poor budget plan

Sunday, March 6, 2011 | 2:01 a.m.

Under the Nevada Constitution, the governor is required to submit a balanced budget to the Legislature two weeks before the session begins. Gov. Brian Sandoval submitted his proposal this year by the required deadline, but it turns out that the budget wasn’t balanced.

In fact, it wasn’t even close.

As the Las Vegas Sun’s David McGrath Schwartz reported, the Sandoval administration admitted last week that its plan was $106 million short. The admission came after Democrats in the Legislature said the budget was more than $300 million out of balance, a charge that Budget Director Andrew Clinger denied.

What is undeniable is that Sandoval’s budget has serious problems beyond how far out of balance it is. Facing a massive deficit, Sandoval took the easy way out. He proposed a budget filled with gimmicks and other tricks and then raided the coffers of school districts and local governments.

All he’s doing is pushing the problem down, and as the Legislature was told, it didn’t even balance the budget. It’s all because Sandoval doesn’t want to violate his no-new-taxes pledge.

Sandoval may sound principled for standing by his pledge, but the pledge was foolish. He made it as part of his successful effort to be more conservative than Gov. Jim Gibbons in the Republican primary. And by holding to it, he’ll hurt Nevada’s future by undercutting schools and important government services.

Here’s the reality: The tax system in Nevada is badly broken, as several major studies over the years have concluded, and the state’s small government hasn’t been adequately funded. The result is a poor level of services and schools.

Sandoval and the Legislature should be considering ways to bring equity to the tax system. There are huge corporations funneling the great profits they make in Nevada — thanks in no small part to their relatively tiny tax bill here — to their headquarters out of state. But Sandoval doesn’t want to touch the tax system, which might mean an increase in what those businesses pay.

So, the governor would allow the schools to suffer so businesses don’t have to pay taxes they can well afford. What he is essentially saying is: Political expedience is better than doing what’s right for the state.

Consider that to close the $106 million hole, Clinger said the administration wants to siphon off money from the vehicle registration fee that goes to Clark County. Again, instead of dealing with the problem, the administration is passing the buck.

If that wasn’t bad enough, Clinger said the administration wouldn’t have an amended budget proposal to the Legislature until May 1 when the state refigures its tax revenue projections. Clinger is hopeful that revenue will improve, and the administration wanted to wait until the numbers are “trued up.”

That is a poor reasoning. Other governors have found a way to work with projections to deliver budget plans to legislatures. And giving lawmakers his plan in May won’t give them much time to consider it. Lawmakers are scheduled to wrap up work on the budget before the session ends June 6.

The state needs more than delays, wishful thinking and budget games. Sandoval should get serious and confront the real problems the state is facing.