Local governments are looking to offer a united voice in the state’s public policy debate as the mayors of Nevada’s two largest cities plan to form a coalition to examine Nevada’s taxes.
Las Vegas Mayor Oscar Goodman, a Democrat, and Reno Mayor Bob Cashell, a Republican, say they will gather elected leaders and business people to review the state’s needs and how to pay for them.
“What kind of state do we want to become, how much will it cost to get there and how will we get the money?” Goodman said, outlining the group’s goals. “If that translates into the need for more taxes, we’ll look at that.”
Goodman and Cashell said they will meet this month to discuss who else should join the group. Clark County Commission Chairman Rory Reid said he has been invited and plans to participate in the discussion.
State revenue is expected to be $541 million less than forecast between now and 2009, prompting Gov. Jim Gibbons to order 4.5 percent budget cuts.
A number of people have questioned the state’s budget structure.
That includes local government leaders, whose own governments have been feeling the effects of a flat economy. With Goodman and Cashell wading into the discussion, though, they could present a new voice in a public policy debate likely to surface next year during the legislative session.
“The state needs to look at a little more stabilized tax,” Cashell said. “This is about getting together, going out into the community to figure out what we want and what we’re willing to pay for.”
This would be a new role, particularly for Goodman. He is better known as a Las Vegas cheerleader and personality, and has rarely immersed himself in details of the city budget.
Also, Las Vegas and Reno, though they’re the state’s two largest cities, have much less responsibility than county governments, which oversee programs such as district courts and indigent care.
“While I can appreciate concerns expressed by the mayors, the issue is a state issue,” said Carole Vilardo, president of the Nevada Taxpayers Association. “Generally speaking, the counties are more impacted by a shortfall in state revenue.”
According to a tally put together by the Nevada Taxpayers Association, there have been seven formal studies of the state’s finances since 1959. Vilardo said the studies almost inevitably come amid downturns in the economy, often recommend increasing revenue and generally end up sitting on the shelf.
The most recent tax study was created in 2001 by then-Gov. Kenny Guinn.
Throughout the most recent budget debate, Gibbons has stood by his promise not to raise taxes or fees.
Reid said he’s open to having discussions, particularly with Gibbons’ suggestion that the state look at the distribution of revenue between local and state governments.
“There’s a strong interest in what the state does,” Reid said. “Nobody’s served by local officials being silent on this.”
Senate Majority Leader Bill Raggio, R-Reno, has called for a comprehensive review of the state’s needs and whether they’re being adequately funded.
Melissa Subbotin, Gibbons’ spokeswoman, pointed out that the governor invited local government officials to a roundtable discussion about the budget cuts last year.
“They were included in the budget process. We appreciated their input,” she said. “They’re certainly entitled to evaluate the state tax structure. We’d definitely consider any thoughts or ideas they had on the matter.”
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