Members of Nevada's 76th Legislature and Governor Brian Sandoval announced a deal on the state budget on June 2, just four days before the regular biennial session is to end. Assuming it holds up long enough for Sandoval to sign it, the agreement will remove the need to call a special session of the Legislature to finish the budget work. Such a scenario has played out several times in the past.
Nevada Governor Brian Sandoval.
Photo © David Becker / Getty Images News
The intransigent "no new taxes" position of Sandoval and Republicans in the Legislature was in good measure responsible for the protracted budget standoff. A sticking point with Democrats was their attempt to extend $620 million in taxes from 2009 that were to sunset in June, 2011. In testimony before the Legislature, even representative from the industries mainly affected (mining and gaming) urged lawmakers to keep the taxes in place rather than make further cuts to education and social programs. The compromise was forced, however, when the Nevada Supreme Court ruled that the state could not raid local governments for over $600 million, thus creating a big shortage in Sandoval's budget and derailing the promise to let those taxes lapse. In the agreement, the taxes will continue for another two years.
Of course, quite a few other things are included in the budget compromise Sandoval is expected to sign. Stay tuned for more details once the dust settles.
Sources: KTVN2 News, Reno Gazette-Journal.
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Comments
Another nail in the economic coffin of Nevada. Fiscal discipline is constantly being undermined by liberal judges who have no legislative authority or common sense. This is clear case in point; high taxes will prolong the return to prosperity of the economy here. The spenders don’t get it; wealth is created by providing incentives to the winners in business and winners won’t develop businesses in places where their hard-earned money is CONFISCATED by government. Wynn will continue to invest in Macao not Las Vegas. And the mines will shut down because they can’t make a profit and keep it.