Horsford, Leslie: 2013 budget has $1.1B hole

Senate leaders argued Thursday Gov. Brian Sandoval's proposed budget balances with a huge pot of revenue that won't be there in two years, forcing even more draconian cuts to state services and education.

"On top of the reductions being taken, you would walk into the 2013 session with a $1.1 billion hole," said Majority Leader Steven Horsford, D-Las Vegas.

He and Sen. Sheila Leslie, D-Reno, pointed to securitizing the insurance premium tax, advance payment of the mines tax, the indigent accident money and diversion of education room tax dollars as well as taking capital construction money from school districts.

"It's not forward thinking," he said.

They said the governor's proposed budget contains unacceptable reductions in numerous areas but imposing an additional $1.1 billion in cuts to make up for revenues that won't be there two years from now would be disastrous.

Horsford said he, Leslie and other legislative leaders want, instead, to reform Nevada's revenue system.

And to those who say business can't take any tax increases, Horsford said, a growing number of business leaders he has talked to want stability more than anything. He said they also want to know the state is addressing the long-term problems forcing service cuts such as university system reductions.

Leslie agreed: "What I'm hearing a lot from business is we can't tear apart the universities."

She said during the next few weeks, lawmakers will be hearing bills to remove restrictions in the constitution on how mining is taxed, reviewing mining tax deductions and removing sunsets on the temporary tax hikes approved in 2009.

Horsford said it makes no sense to solve this budget cycle's problems with a quick fix but create a bigger problem in the future.

"We have to understand the implications of the decisions he's making," he said. "There are some long-term negative consequences."

Leslie said she expects a discussion of other ideas such as a corporate income tax, which some targeted businesses like casinos and mining have said they might consider because that would apply to all businesses.

Horsford, however, said there is no question there will be cuts, at least in this cycle because, while they may be unacceptable, "in some cases, they're unavoidable."