Nevada Assemblyman Bob McCleary, D-North Las Vegas, prepares for opening day ceremonies at the Legislature, in Carson City, Nev., on Monday, Feb. 3, 2003, as his son Jacob, 4, plays with Spiderman. Lawmakers convened in Carson City for the 2003 legislative session. (AP Photo/Nevada Appeal, Cathleen Allison)
Lawmakers gathered Monday for the start of the 2003 Nevada Legislature -- faced with a $1 billion tax plan from Gov. Kenny Guinn and a new report that says the state has the worst tax system in the nation.
The Republican governor has proposed a record $4.81 billion budget to carry Nevada through the next two fiscal years -- but without the tax hike he warns that massive service cuts would be needed.
Guinn's tax proposals have caused friction within his own party, especially after he said it would be "political cowardice" to oppose any increase.
But he got support Monday as Governing Magazine released a major report that described Nevada's tourism-dependent tax system as the worst in the nation in terms of adequacy of revenue, fairness to taxpayers and management.
Guinn based most of his tax plans on proposals that emerged from a special study panel that analyzed Nevada's entire tax structure. But the panel's suggestions were blasted by tax foes.
"There is a deeply rooted anti-tax ethos in the state, and whether these sensible suggestions will prevail in this year's legislative session is anybody's guess," Governing Magazine said.
In his Jan. 20 State of the State speech, Guinn said the $1 billion in new or increased taxes on businesses, services, cigarettes, liquor and other sources would plug a $700-million-plus hole in the budget for the upcoming two-year budget cycle, and allow for some program growth.
A key element of Guinn's plan is a 0.25 percent gross receipts tax on annual business revenues above $450,000, to generate more than $220 million per year. Since that levy would take time to put in place, an interim tripling of the existing $100-per-employee on businesses has been proposed by the governor.
The gross receipts tax has run into major opposition from business groups -- that in turn have been criticized by casino industry leaders who don't want to be singled out for the new revenue the state needs.
Following Guinn's speech, legislative money committees held budget review hearings in advance of the session's start, getting an early look at scores of bills dealing with weighty issues such as the death penalty, drunken driving, child abuse and racial profiling.
By late Friday, nearly 100 bills dealing with those issues and other subjects had been prefiled. That ensures committees will have plenty to discuss at their initial meetings.
Assembly and Senate budget committees today will review spending plans for the governor's and lieutenant governor's offices. And Assembly Judiciary will go over some of its big issues, such as capital punishment measures.
On Wednesday, Senate Finance will go over budgets for the state Ethics Commission and the maintenance budget for the governor's mansion, and hear a report on audits of numerous state agencies.
Also Wednesday, Assembly Judiciary will get a report on Nevada's prison system, and Assembly Ways and Means will take a look at spending plans of the state controller and state treasurer.
Secretary of State Dean Heller will go over various election-law issues at a midweek meeting of the Senate Government Affairs Committee.
On Thursday, Assembly and Senate Taxation committees plan a joint meeting to go over the recommendations from a special tax study panel -- suggestions that Guinn relied upon in producing his tax hike plan.
On Thursday and Friday, Senate Finance and Assembly Ways and Means committees will continue their budget reviews, looking at spending plans for the attorney general, secretary of state, and the state office that has led the fight against federal plans for a high-level nuclear waste dump at Nevada's Yucca Mountain.
Also Friday, Senate Commerce and Labor will review bills aimed at protecting workers employed at hazardous job sites.
