Thursday, February 26, 2004
Copyright © Las Vegas Review-Journal

NEVADA TAXPAYERS ASSOCIATION: Guinn's point lost on crowd

Governor finds business group less than receptive to his assessment of the state

Gov. Kenny Guinn makes a point Wednesday at the annual Nevada Taxpayers Association meeting in Las Vegas. Guinn appeared before the group with California Taxpayers Association President Larry McCarthy. Part of McCarthy's presentation is shown on the screen behind Guinn. Photo by John Gurzinski.

The luncheon program at the annual Nevada Taxpayers Association meeting Wednesday was designed to present a tale of two states with speakers discussing the economic mess in California against the rebounding economy in the Silver State.

But Gov. Kenny Guinn's speech at the Stardust convention center left many in the crowd of more than 300 politicians and business owners at a loss to understand the main point Guinn later said he intended -- that "business is good."

Guinn came with prepared remarks about the state's business environment, remarks replete with statistics. But many of those remarks led to quizzical stares, including Guinn's comment: "Fifty million new jobs are created in America every week."

He dramatically adjusted the figure later, then defended the state's economic condition, telling the gathering that Nevada has no debt, has not raised unemployment insurance rates for businesses in five years and has saved money by privatizing workers' compensation.

"I'm damn well going to take some credit for that," he declared.

Only Clark County Commissioner Myrna Williams applauded.

"It's a hard audience," Guinn said in an interview after his speech.

By contrast, the remarks of California Taxpayers Association President Larry McCarthy were warmly received.

McCarthy began by discussing the "rarefied atmosphere" in Nevada which afforded him an opportunity he hasn't yet received in the Golden State, a conversation with the governor.

He then discussed California's $22 billion debt, $11 billion in energy debt, spiraling workers' compensation and unemployment insurance costs and the addition of state-funded family leave and health care programs as the perfect storm against taxpayers.

"We're funding fraud as if it's a spending priority," McCarthy said before ending with the good news: "I think we have reached our bottom."

Guinn followed McCarthy's Power Point presentation and took the stage looking out at many of the lawmakers and lobbyists who last year rejected his $1 billion tax proposal and its key revenue source, the gross receipts tax.

So he opened with an anecdote, saying he and wife, Dema, were returning from California recently and saw a packed sport utility vehicle with a sign that he said read: "Here we come Gov. Guinn, we're out of here."

A statement about a meeting over the weekend with California Gov. Arnold Schwarzenegger in Washington, D.C., also played to silence.

"He wanted to talk to me, not about what I did for my pecs, but how we privatized worker's compensation," Guinn said.

Guinn, who is in his second term, at times defended his administration, arguing he is planning for the long term.

He mentioned past criticism of leaders who were initially picketed or jeered for suggesting things like expansion of McCarran International Airport, construction of a Las Vegas convention center or creation of a community college system.

The governor also took on the Legislature, arguing that state lawmakers are taking over some executive branch duties and have created 800 state jobs he did not recommend. He did not elaborate.

"Punishing," is how one business owner described the speech as he left.

"I couldn't even follow that," said Senate Minority Leader Dina Titus, D-Las Vegas. "The governor was trying to get out some of the good facts, but it wasn't presented in a very cogent way."

Assemblyman Bob Beers, R-Las Vegas, shook his head when asked what he thought of Guinn's speech. Instead, he commented on McCarthy's presentation.

"I think he described far more accurately why we're doing well here in Nevada," Beers said.

"That was embarrassing," said Steven Miller of the Nevada Policy Research Institute, whose group has been critical of Guinn's tax proposals. "He's obviously way out of touch with his audience and it's sort of like the state's helm is rudderless."

Guinn had returned to Nevada at about 1 a.m. Wednesday from his trip to the nation's capital for meetings with other governors. The midday speech, he later admitted, was not among his best.

"I was only trying to show that we're not going to get like California," Guinn said.