Legislature’s budget hearings start Wednesday

CARSON CITY - The 2013 Nevada Legislature doesn't convene for another few weeks, but the pre-session budget subcommittee hearings will start today.

The six days of hearings will offer legislators their first public opportunity to praise or rip apart Gov. Brian Sandoval's proposed $6.55 billion general fund budget.

"It's an important overview of things to come," said Senate Finance Committee Chairwoman Debbie Smith, one of the pre-session chairs.

Smith, D-Sparks, said she is eager to learn how the administration will handle the car registration tax, which was increased in 2009 and has angered drivers because of its steep costs.

"We want some clarification," she said.

The hearings set the tone for the 120-day legislative session, which will start Feb. 4.

Two years ago, the public learned during a pre-session hearing details of what became known as the governor's "gimmicky budget," balanced with a plan to take more than $600 million in local government and school district revenue to cover state spending.

And Sandoval wanted to grab $411 million of Clark County School District bond reserves.

The administration made revisions but continued to fight to use local revenue in the state budget until a Nevada Supreme Court decision forced the administration to back off and agree to impose tax increases. Sandoval broke a no-new-taxes pledge when he signed that tax bill.

The biggest issue facing Budget Director Jeff Mohlenkamp when he starts the hearings today might be why the governor's proposal is 5.5 percent higher than the $6.2 billion budget approved in June 2011. Counting federal funds, gasoline taxes and other fees, the proposed 2013-15 budget is 11.1 percent higher than the budget two years ago.

Those figures hardly show a state still struggling out of a recession.

Mohlenkamp is starting his first session as budget director after a long career with the Department of Corrections. He will face a formidable staff of experienced legislative fiscal analysts who are sure to feed legislators questions about perceived problems in the Sandoval budget.

During the pre-session hearings, perhaps even by Thursday, legislators might learn whether the Nevada Supreme Court has ruled that the Nevada State Education Association's petition to impose an $800 million-a-year business tax can be placed on their 2013 agenda.

If the court rules that the 152,000 people who signed the petition were given sufficient information about the intent of the taxes, then the matter must be heard by legislators during the first 40 days of the session.

If they reject the tax, then the matter would be decided by voters in the 2014 general election.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3900.