While Gov. Kenny Guinn continues to iron out details in the budget proposal he will announce in his State of the State address later this month, he appears to be on the right track in every respect but one - a rebate to Nevada taxpayers.
Let's start with the governor's priorities in what will almost certainly be another record-high budget:
- Education. As outlined by Associated Press reporter Brendan Riley in Sunday's edition of the Nevada Appeal, Guinn plans to set up a trust fund for schools struggling to reach the federal standards of the No Child Left Behind Act.
This is a crucial ingredient in Nevada's future. That public schools provide the best education possible should be obvious, but there is a significant downside to schools unable to meet the federal standards.
Most programs in a particular school may be functioning well, but failing grades for, say, non-English speakers or special-education students can leave a black mark on the entire school. Better that the state be prepared to shore up those programs than to wait for failure to force the state's hand.
- Social services. Nevada's growth, still leading the nation, means an ever-present strain on agencies that help the poor and unemployed. The same is true of Medicaid providers. Falling behind in the funding for these services essentially means never being able to catch up.
- Rainy day fund. It must be restored, and Guinn plans to earmark at least $150 million.
- Raises for state workers and teachers. They got cost-of-living increases during the lean times. It makes sense to budget higher raises while the state is prospering.
That brings us to tax rebates. Guinn so far has rebuffed suggestions that some portion of the state's bulging tax-revenue coffers be returned to taxpayers.
But it will be an issue for the Nevada Legislature - bill-draft requests already have been submitted - so it would behoove Guinn to have his economists do the math.
How much would Bob Beers' idea of a $100 refund on vehicle registrations cost? Where might a tax refund come in relative priority to other budget items? What would state government be giving up if it returned some of the money - a new prison? 100 state jobs? A raise for university professors?
We don't know. But we think the debate should start now.
