Guinn warns lawmakers of revolt by taxpayers if surplus retained

Gov. Kenny Guinn warned legislators of a taxpayer revolt if some of the state's surplus is not returned to residents.

"I would say that to both Democrats and Republicans, and they better pay attention to it," Guinn said.

Speaking on Reno-based KRNV television's "Nevada News Makers," Guinn said his concerns prompted him to propose a vehicle-registration rebate. The plan would refund more than $300 million in gambling and sales tax revenues to Nevadans who registered cars, boats, recreational vehicles or motorcycles in 2004.

State lawmakers plan to begin debate when the legislative session opens Feb. 7, though Guinn's rebate proposal already is drawing criticism from legislators.

"Our new (tax) money is $1.7 billion," Guinn said of revenues from the past two years. "I'm not going to sit there and say that the taxpayers cannot participate in some form.

"Maybe my recommendation isn't the right one. They (legislators) can change it. The important thing, in the final analysis, is to get some of this money back to the people."

Not all lawmakers share Guinn's concerns of a taxpayer revolt, leaders of both parties said.

"I am not getting that kind of reaction," said Senate Majority Leader Bill Raggio, R-Reno. "What I have been hearing from the public is that they want us to do what is appropriate."

Some Nevada lawmakers agree about a possible taxpayer backlash, but not over a surplus from sales and gambling taxes.

"The taxpayers' revolt will come if people see 50 percent increases in their property taxes due to increased value, market conditions and out-of-state speculators," said Assembly Majority Leader Barbara Buckley, D-Las Vegas. "I don't think there is much concern that gaming revenues have come in over projections."

Guinn also defended his proposal to cut retirement health benefits for new state workers and teachers, saying the costs are threatening to bankrupt the state. The governor dismissed critics who argue that the benefit cut will hamstring teacher recruitment, saying it was "not a known benefit."