Democrats on the clock in Carson City
Legislative Democrats -- who control both houses in Carson City -- have for months exploited Nevada's revenue woes to hammer away at Republican Gov. Jim Gibbons and his austere budget proposals.
But while ridiculing the governor's spending plan as cruel, heartless or dead on arrival, they've lacked the courage to offer a competing vision -- no doubt because such a proposal would include massive tax hikes that could undermine Democratic support in the 2010 legislative and gubernatorial races, which will determine the state's political landscape for the next decade.
Following Friday's news from the Economic Forum -- a five-member panel charged with setting revenue projections for the next biennium -- it's about time Assembly Speaker Barbara Buckley and Senate Majority Leader Steven Horsford started playing it straight with state taxpayers about their budget plans.
The news was not good. The panel predicted that the state will have $5.5 billion to spend over the next two years, below even the governor's $6.2 billion spending plan he proposed in January. That's a slight decrease from the $5.7 billion the board in December estimated would be available. Democrats maintain the state needs to spend $8 billion "just to maintain current services," which is euphemism for "to continue the level of government growth that will keep the public sector happy."
But let's put all this in some perspective.
The two-year budget passed by lawmakers in 2005 was $5.9 billion. Since then, population growth has slowed to a trickle, while inflation remains under control. Even with all the "cuts" made in the 2007 budget plan, the state will still have spent more than $6 billion over the last biennium, meaning spending has increased. If you add in federal stimulus money and a room tax hike that Reno and Las Vegas voters approved in an advisory measure last year, the money available to lawmakers this session will be more than $6 billion.
In response to the Economic Forum's new numbers, the governor vowed to make more spending adjustments. From the Democrats, it was simply more of the same, vague platitudes.
"We will not be able to protect or preserve the number of qualified teachers in the classroom if we follow the governor's approach on this," said Mr. Horsford. "And I draw the line. We will not cut education funding the way the governor suggests. There is another way to do this. And as difficult as it is to ask people for revenue, it's important that we do that at this point to protect education."
What exactly is "another way to do this"? Nevada's businesses and families are struggling with this recession and can ill afford to be shaken down for more tax contributions. But what else could Mr. Horsford mean?
It's about time Mr. Horsford and Ms. Buckley came clean about their agenda for "raising revenue." Lawmakers have been in session since February and are supposed to adjourn June 1. Talk and hand-wringing come cheap. Will lawmakers elect to force the state to live within its means or will they chase $1 billion in new and higher levies and fees?
Those who pay the bills deserve to hear some specifics. Now.
