Lawyers met Monday in a Carson City courtroom to discuss how to proceed with a legal action that attempts to block a vote on a teachers' union petition circulated this year.
The union petition is aimed at taxing businesses statewide.
Judge Michael Griffin said the challenge to the petition should be decided "cheaply and efficiently" so as not to interfere with the 2001 legislative session.
The lawsuit, filed by the Nevada Pro-Education Alliance, alleges that the petition was improperly circulated, improperly filed and flawed in its structure, which looks to impose a 4 percent tax on all Nevada businesses statewide that earn more than $50,000.
The Nevada State Education Association, backers of the petition, collected more than enough signatures to have the tax considered by the Legislature and Nevada voters. They said it will provide $250 million in additional funding to schools. According to the petition, the money cannot be designated for anything else. The NSEA filed a motion seeking dismissal of the lawsuit.
During Monday's hearing, lawyers for both groups laid out plans to argue their issues. Griffin scheduled another hearing for next week.
He hopes to have all legal issues decided at the district court level and available for Nevada Supreme Court consideration before the legislative session starts. Once in session, the Legislature has 30 days to act on the petition.
The petition has raised opposition from lawmakers and business owners who say it puts stress on the fragile budgeting system. In addition to the new tax, it mandates that half the state's budget also be directed toward education. Currently, education eats up approximately 35 percent of state money.
The complaint filed by the Nevada Pro-Education Alliance alleges:
- The tax earmarks money for a specific use, a process that is unconstitional in Nevada
- Collection and verification of signatures was illegal because of tampering, and rescission cards, used to remove names from the petition, were not recognized
- The program does not raise enough money to fund its operation or bureaucracy, as required by law
- Individual income tax is constitutionally prohibited in Nevada and individual business owners would inherit the liability
Proponents of the petition have said that the challengers are grasping at straws and that no constitutional problems exist in the proposed legislation.
The petition had 63,795 legal signatures statewide, according to the secretary of state's office.