Rebate checks could cost more than $1 million to issue

Nevada Controller Kathy Augustine told the Senate Finance Committee on Friday it would cost more than $1 million to issue more than 2.5 million rebate checks proposed by Gov. Kenny Guinn.

Guinn proposed returning the budget surplus to Nevadans by refunding the amount they paid in vehicle registration fees during 2004 up to $300 per vehicle. That would return almost $300 million to Nevada car, truck, boat and trailer owners.

Augustine said the cost of staff time, paper, envelopes, leased check printers and other equipment to do all those checks would cost $509,034 - 25 cents per check. But she said it would cost another half-million to process returned checks and reissue checks.

In addition, the Department of Motor Vehicles estimates its costs at $205,817 to prepare the list of recipients.

If the state has to put a postage stamp on each of those envelopes, it could add nearly $900,000 to the total - putting the total near $2 million. Officials are trying to get a bulk mail rate.

The rebate's passage is far from certain, with lawmakers in both houses saying the surplus might be better spent on such things as Millennium Scholarships or replacing bonds for capital construction projects.