Petition to raise gaming tax rate challenged again

This time, the gaming industry organization has challenged a new petition by the Nevada State Education Association that would increase the gaming tax by 3 percentage points and direct the money — $250 million to $400 million a year — to higher teacher salaries and student achievement programs.

"It is the same old delaying tactics the gamers have used before," said NSEA President Lynn Warne. "They will pull out all the stops and use every legal avenue to keep this question away from voters in Nevada."

Warne said Wednesday the gaming industry knows that voters overwhelmingly will approve the tax increase. A poll by the Review-Journal last fall found more than 2-to-1 support for the tax increase.

In the lawsuit filed Tuesday, Todd Bice argued the 28,000-member teachers union petition deals with the same issues already decided by a judge.

Senior Supreme Court Justice Miriam Shearing, acting as a district judge, ruled last month that a similar petition filed by the NSEA violated a state law that requires petitions deal with a single subject.

That petition also sought to increase the gaming tax, now 6.75 percent, to 9.75 percent, and specified the percentages of the additional revenue that would be spent on salaries, incentive pay, to reduce class-size and extend the school year and to compensate teachers for out-of-pocket expenses.

Shearing ruled the petition could only state the higher tax proceeds would be used for education.

She wrote up language for a petition that resolved her concerns, but the NSEA chose instead to circulate a new petition that specified that the tax increase would go toward salaries and student achievement programs.

But Warne said the new petition addresses Shearing’s concerns about specifically earmarking how the higher taxes would be spent. The new petition does not specify the percentages of the additional revenue that should be spent on higher salaries and student achievement programs.

A court date has not yet been scheduled to hear the latest lawsuit. Under law, petition challenges are given a priority and must be heard within 15 business days.

If a judge finds a problem with a single word in the new NSEA petition, then the union would have to circulate another petition, or appeal to the Supreme Court.

As it is, groups like the NSEA that propose changing the state constitution have only until May 20 to collect 58,836 valid signatures, or the petition cannot be placed before voters in the November election.

In the lawsuit, Bice said that new petition, like the earlier one, violates the single-subject law and deals with issues "identical to that decided" by Shearing.

"NSEA is barred from re-litigating whether the funds from the increased license fees can be earmarked for teacher salaries and student achievement," the lawyer stated.

Earlier this month, District Judge Bill Maddox cited Shearing decision as part of the reason why he tossed out two petitions by Clark County lawyer Kermitt Waters that would have tripled the gaming tax.

The NRA and Bice also had filed litigation against Waters’ petitions.

Besides contending the new NSEA petition breaks the single-subject law, Bice argued it cannot be circulated in its present form for several other reasons, including that its summary contains 211 words, breaking a law requiring these summaries contain no more than 200 words.

Bice argued the petition language does not tell potential signers it would change fundamentally how education is funded in Nevada.

Currently, school districts are funded under the so-called "Nevada plan." They receive per pupil allocations from the Legislature that take into consideration the amount schools receive in local support.

Since Clark County is wealthier than many of the rural counties in the state, it traditionally receives less in state per pupil student than these counties. Under the petition, all school districts would receive the same amount per student.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or (775) 697-3901.