Rebate checks reduced

CARSON CITY -- After a partisan debate, legislators agreed Thursday to cut to $300 the average property tax rebate check that poor, older residents receive.

Republican members of the Interim Finance Committee had backed reducing the checks, which now average $344, to $271.

That way the Division of Aging Services, which runs the rebate program, could avoid laying off 83 employees and reducing medical services to senior citizens.

Democratic lawmakers said senior citizens are very poor and count on the rebate checks. They have been receiving hundreds of calls from older people wondering why they have not received them.

"This is not a lot of money," said Sen. Bernice Mathews, D-Reno. "There are people out there hurting now."

After several motions failed, both sides agreed to cut the average check to $300.

With that reduction, some Aging Services employees probably will be laid off and programs for seniors might be reduced to meet 11 percent budget reductions sought by Gov. Jim Gibbons.

"What we are seeing is frustration," Assembly Speaker Barbara Buckley, D-Las Vegas., said "Do we cut a division that needs its personnel or penalize poor people? It reflects the awful choices we are going to make."

Senate Minority Leader Bill Raggio, R-Reno, said the inability to come to a quick compromise on cuts might mean trouble lies ahead as lawmakers cut state spending by $309 million during the current fiscal year budget.

He had backed a proposal to reduce the check to a $271 average, then later, if state finances improve, send additional payments to seniors.

Nevadans 62 and older with household incomes of less than $27,863 are eligible for rebates on the property taxes they paid during the previous year.

Typically there is enough money to cover all costs, but the $5.2 million appropriated by the Legislature for this year's budget fell short. More than 4,000 more people applied during this year's February to April enrollment period than during previous years.

The state Board of Examiners, chaired by Gibbons, two weeks ago recommended reducing the checks by $10, making the average check $334.

But Mike Wilden, the director of the Department of Health and Human Services, said that savings would not cover cuts the Division of Aging Services must make.

The cuts approved Thursday will save the agency $500,000.

During the hearing, Assemblyman John Marvel, R-Battle Mountain, questioned why state government funds the rebate program.

He pointed out state government does not receive property tax revenue, except to cover payments for debts.

Most property tax revenue goes to schools and local governments.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.