Horsford says deal reached on taxes

Senate Majority Leader Steven Horsford, D-Las Vegas, said early today that a deal has been reached on the budget and tax plan to close out the 2009 Legislature.

He scheduled a committee of the whole meeting for 9 a.m. to process SB429, which will generate some $481 million in additional revenue to the state over the next two years.

"There has been general agreement reached on the reform package as well as the other measures dealing with the budget," he told the Senate just before adjourning at 2:30 a.m.

The tax plan relies primarily on increases to the sales tax and the Modified Business Tax, both of which are expected to be sunseted in two years.

The Legislature has now completed several steps toward processing the five bills which create the state budget as well as several ancillary measures implementing specific tax increases and redirections of funding.

The education funding bill, which under the Nevada Constitution must be processed before other parts of the budget, as passed both houses and is on the way to Gov. Jim Gibbons. The Appropriations Act, which spells out how the majority of General Fund money will be spent, has been passed by the Assembly and is being considered in the Senate.

The Authorizations Act, which sets out spending for federal funds, highway funds, numerous fees and revenues, has been passed by the Senate as has the state employee pay bill which spells out public worker salaries for the coming two years. Both are now in the Assembly.

The final bill is the Capital Improvement Projects bill, which can move next week since it isn't considered controversial.

The others must receive final approval today.

The Assembly Was and Means committee meets at 8 a.m. to work on its share of those measures. The Assembly itself convenes at 9 a.m.

All of the budget bills and the tax plan must clear the Legislature before 5 p.m. today in order to leave lawmakers enough time to override a promised veto by Gibbons.

The governor has promised to veto any legislation increasing taxes or fees and to veto any budget plan which relies on those increases. He has five days not counting Sunday to do so.

Lawmakers want the entire budget and tax plan on his desk by the end of today so that, when he vetoes the bills, they will still be in session and able to override the vetoes.

The 120 day session ends June 1.