Lawmakers move to pass budget and raise money to fund it

Lawmakers moved ahead on several fronts Monday, pushing through the bills that implement the state budget and generate the revenues needed to pay for it.

Their deadline for passage of a tax plan is Thursday because Gov. Jim Gibbons has five days to veto it. If they wait too long, they would be out of session when he does and he could leave any potential revenue increase out of the agenda for a special session to balance the budget, forcing dramatic cuts.

Amid concerns Gibbons will wait until they adjourn, then use executive power to undo many of the additions lawmakers have made to the budget, they are also amending a number of bills. He could, they fear, reduce or postpone program enhancements worked out by Republicans and Democrats in the Legislature or delay the implementation of tax increases needed to balance the budget.

One example is the Public Employee Benefits Program bill where language was changed Monday to firmly set the state's monthly premium. In the past, that bill always set the premium contribution as "not to exceed" a specific amount. That phrase was deleted so Gibbons couldn't arbitrarily reduce the employee benefits contribution.

Members of leadership on the money committees say there will be similar changes throughout the bills that make up the state's budget to restrict the ability of the governor to make those kinds of changes.

The key changes will come in what's called the "back language" in the Appropriations Act " the piece of legislation that spells out how and where General Fund money will be spent over the next two years. That language has traditionally given the executive branch some flexibility in managing programs.

The Assembly Monday gave final approval to several pieces of legislation implementing not only revenue enhancements contained in the governor's proposed budget but their additions to those changes as well.

AB543 includes diverting not only 4 cents of local property tax revenues in Clark and Washoe counties to the state, but the 5 cent portion of property taxes those counties collect for street and roadway improvements.

Between the two, that nets the state a projected $156 million over the biennium. The 4 cents was in the governor's budget.

In addition, the Assembly voted out AB552, which increases the allowance the state gets for collecting and distributing the sales and use tax to local governments. The increase, also contained in the governor's budget, will net the state more than $25 million.

Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.