Goodman can’t see balancing state budget without tax hike

Add Las Vegas Mayor and gubernatorial flirt Oscar Goodman to the list of skeptics who see tax increases in Nevada's future, despite the claims of both major-party candidates for governor.

During a chat with reporters last week, Goodman, who considered running for governor as an independent, ticked off the list of dire problems facing the state. They included high rates of teen pregnancy, suicide and high school dropouts, in addition to the upcoming legislative session that will include coming to terms with a state budget when the current state spending rate is about $3 billion higher than projected revenue for the 2011-13 biennium.

Goodman said one of the reasons he didn't run for governor was because he didn't see a solution, and that so far neither Republican Brian Sandoval nor Democrat Rory Reid has presented one.

"I think you have to come with specifics. I think the public is anxious to hear specific proposals," Goodman said.

When asked whether he thought Sandoval and Reid were being sincere when they say the budget can be balanced without raising taxes in some form, Goodman said, "I don't think so. I don't know how they do it without raising taxes."

Goodman continued, "If you are going to have a great society you have to be ready to pay for it."

Then he quipped, "That ended my future political career."

Budget-balancing clues

Neither of the major gubernatorial candidates is saying much about how he would balance a budget that could be $3 billion upside down for the 2011-13 biennium.

But that doesn't mean the candidates are not leaving clues.

Both Democrat Rory Reid and Republican Brian Sandoval have said they intend to balance the state's ledger without raising taxes.

Each has also said he is content with the current tax structure, a structure that derives about half of the state's revenue from sales and gambling taxes.

Sandoval has also stated he doesn't intend to lay off large numbers of state workers, whose pay eats up more than half of the general fund. And Reid says he "won't compromise" on education funding.

So far, Sandoval has shown more cards than Reid when it comes to ideas to make the numbers work.

He recently referenced a list of 62 spending and budget reforms published by the Nevada Taxpayers Association.

And Assemblywoman Heidi Gansert, R-Reno, a Sandoval campaign adviser, has indicated state employee pay cuts are on the way should Sandoval take office.

"Maybe people won't be paid as much, but they'll be employed," Gansert said.

He also is working with other legislators on a budget review committee in advance of a budget proposal that will come from current Gov. Jim Gibbons, who lost the Republican primary to Sandoval.

Gansert referenced potential savings identified by the Nevada Spending and Government Efficiency Commission.

The commission already has recommended modifying state restrictions on applications to the Indigent Accident Fund and Supplemental Relief Fund in order to become eligible for $25 million to $50 million annually in federal Medicaid matching funds and closing Nevada State Prison in Carson City to save $19 million annually, among other ideas.

A Vision Stakeholders Group appointed by legislators is also working on ideas for Nevada's future as well as a private group at Moody's Analytics, which was hired by Gibbons at state expense to make recommendations.

Other ideas floated have included a broadening of the sales tax to include food and untaxed services.

Carole Vilardo, executive director of the Nevada Taxpayers Association, says it will probably take spending cuts and revenue increases to make the numbers work.

"It is probably going to require a combination," she said. "Before it is all over there will probably be a lot of weeping and gnashing of teeth."

Contact Benjamin Spillman at bspillman
@reviewjournal.com or 702-477-3861.