Carson City supervisors on Thursday unanimously supported a resolution opposing the proposed business tax initiative by the Nevada State Education Association.
"We're not against education," Mayor Ray Masayko said. "We as public policy makers have concerns."
The NSEA petition would create a 4 percent tax on net business profits and dedicate the money to public schools. It also asks that 50 percent of the state's budget be dedicated to education. About 35 percent of the state's budget now is dedicated to education. The proposed tax would raise $250 million.
Masayko noted his concerns that the proposed tax could force massive reductions in other necessary state programs. The resolution read in part that "the initiative is bad for individuals, is bad for business, is bad state tax policy and provides no guarantee or measurable means to improve the quality of education in the state of Nevada."
Larry Osborne, executive vice-president of the Carson City Area Chamber of Commerce, was joined at the supervisor meeting by about 50 local business owners. Osborne said the city's support on the issue would help when those opposed to the tax initiative fight it in the Legislature. Osborne said Carson City joined Elko and Douglas counties and the Lander County School District as governmental agencies openly opposing the tax.
"All business recognize the need for education reform," Osborne said. "This proposal doesn't support those needs. It would threaten economic development and expansion. It earmarks half the state's revenue for education. Where does the state go to recover that shortfall? We already have enough unfunded mandates at the local level. We don't need another one."
Osborne also said the chamber is working with the NV Pro-Education Alliance, a statewide group of over 300 chambers of commerce and economic development groups, to introduce different education reforms at the Legislature.
"We trust the current legislative process and our governor as to how schools are being funded," Parry said.
Doreen Mack, owner of Lofty Expressions and president of the Telegraph Square Marketing Group, said many of the small businesses in her area "are struggling to keep afloat."
"One more tax is something we don't need," Mack said. "We would struggle even deeper to stay in business."
Michael Bertrand, a local certified public accountant, said the tax "would make it difficult to bring new economic development to the state," and in the end would be bad for schools.
No one spoke in support of the initiative at the meeting.
The resolution states that Carson City opposes the petition because:
-- It singles out business owners to pay an extra $250 million in taxes for no specifically identified need.
-- It ties the hands to elected officials and the governor to make educated decisions about state fiscal matters.
-- It contains no accountability to ensure that money raised through the tax must result in higher student achievement or measurable improvements in the education system.
-- It demands half the state budget be spent on education, which may result in tax increases to support other state services.
-- It would create another level of bureaucracy within the State Department of Taxation.
