Budget chaos

Just as it appeared Nevada's budget showdown was winding down -- with legislative Republicans and the governor successfully sticking to their "no new taxes" pledge -- along comes the state Supreme Court to gum up the works.

On Thursday, the justices ruled unanimously that lawmakers acted illegally in 2010 when they took $62 million from the Clark County Clean Water Coalition, a wastewater treatment project, to help cover the state's general fund hole.

The opinion held that the state constitution "prohibits, among other things, local and special laws for the 'assessment and collection of taxes for state ... purposes.' "

In his budget for the 2011-13 biennium, Gov. Sandoval has included as much as $500 million that would be diverted from property tax and room tax money collected in Clark and Washoe counties and money raised in Clark County for school construction.

Gov. Sandoval immediately issued a statement saying the ruling puts the legality of his budget in question. "The ruling raises questions about certain assumptions in the proposed executive budget, despite some having been used in the past," the former attorney general and federal judge said. "I am responding by reworking the state budget."

Translation: The counties might win if they sue the state over the money grabs.

Now what? Today the governor is expected to announce that he will support extending for two more years the payroll, sales and vehicle registration taxes that were set to expire next month. The governor's solution is far less objectionable than imposing the array of entirely new taxes majority Democrats once hoped to create. The justices have provided him political cover for his broken pledge.

But this budget drama proves one thing: Once you pass a tax increase, it's next to impossible to get rid of it.