Governor's plan includes securitizing insurance tax

Between what it takes from local governments and schools plus the continuation of several revenue streams approved by the 2009 Legislature and 26th special session, Gov. Brian Sandoval's administration managed to add $1 billion to the $5.33 billion in general fund revenue approved by the Economic Forum.

One of the items likely to be most controversial, however, is the plan to securitize part of the Insurance Premium Tax. That means selling the rights to collect a quarter of that $240 million a year revenue stream to a private business. Director of Administration Andrew Clinger said that would generate a one-time lump sum of $190 million for the state next year.

The buyer would then get the first $53 million collected from insurance taxes for the four years beginning in 2014, for a $22 million profit.

Lawmakers have previously rejected a similar plan that would have sold the rights to collect the tobacco settlement money used to support the Millennium Scholarship and several health programs for an up-front payment.

The total general fund spending plan for the coming two years comes to more than $6 billion.

Taking the increased room tax in Washoe and Clark counties for two more years generates $221.5 million. It gets $60 million from the mining claims tax and

$8 million from the "temporary" increase in the short-term car rental tax plus nearly $40 million from the Indigent Accident Fund.

The plan takes half the

$2 per slot machine quarterly license fee that had been dedicated to problem gambling programs for another $1.5 million.

The biggest sweep on the list is taking $425 million in excess debt service funds from Nevada school districts. The plan cuts the reserve requirement for district bond accounts from one year's payments to six months, matching the state reserve requirement.

Sending the 9 cents of the Washoe and Clark County property tax rate directly to the university system adds another $121 million to the total.

Altogether, Clinger said the proposals generate $1.06 billion for the general fund, enabling Sandoval to add back more than $119 million to Health and Human Services budgets - more than $54 million of that by restoring personal care attendant services that help keep the severely disabled in their homes instead of being institutionalized. Chief of Staff Heidi Gansert said that would have generated a short term gain but cost more in the long run as those people are forced out of their homes.

Funding for several other programs also was restored including for traumatic brain injury patients, autism services, adult daycare and money for dentures, prosthetics and other such devices.

In addition, $7.8 million was restored to keep welfare case workers from being cut.