Chuck Muth: Kick-the-can budgeting got us into this mess

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Republican gubernatorial candidate Brian Sandoval has said "no new taxes." And Democrat gubernatorial candidate Rory Reid has said "no new taxes." And yet skeptics remain. For some reason some people just don't read a politician's lips and believe the words that come out. Go figure.

Indeed, columnist Jon Ralston this week went so far as to accuse both gubernatorial candidates of "lying" about their ability to balance the state's budget next year without raising taxes. Are they? If not, it's a reasonable request by voters that both candidates detail exactly how they would accomplish this task before the election in November, not after.

The projected budget deficit next year is $3 billion. And while some question that number, the fact remains that whatever it is it will be worse than it had to be thanks to the fiscal irresponsibility of the 2009 Legislature.

As you will recall, instead of making the harsh budget cutting decisions back then, which would have alleviated some of the pain now, foolhardy legislators increased spending in the governor's budget by about $1 billion. They then compounded this fiscal recklessness by raising taxes by a commensurate amount right smack dab in the middle of The Great Recession.

Making matters worse, while the government programs and services they approved were permanent, most of the tax hikes they voted for will expire next year unless the Legislature extends them or makes them permanent, too.

Also, the Legislature used one-time federal "stimulus" money to protect ongoing sacred cow government programs in 2009, and that money won't be available to subsidize Nevada's government spending next year.

To his credit, only Assemblyman Ed Goedhart (R-Amargosa Valley) had both the foresight and the spine to speak up last year and warn his colleagues not to use stimulus money for ongoing programs. He was, at the time, upbraided by legislative leaders - but let history record that Goedhart was the lone fiscal canary in this economic mine shaft.

Had the Legislature cut spending instead of jacking it up; and had it not used stimulus money to avoid making absolutely necessary cuts to non-essential government programs and services, next year's new governor and Legislature wouldn't be in such a sour fiscal pickle. By ducking the hard and necessary spending decisions in 2009, the pain is going to be that much more painful in 2011.

So the big question is: Can Nevada's budget deficit next year, whatever it is, be filled without raising taxes?

Of course it can, and of course it should. That will mean, however, that legislators and the next governor will have to accept that government can and should do less, as well as do many things it's now doing in new, more efficient ways.

Starting with money-saving school vouchers to de-monopolize our failed government-run public schools.

• Chuck Muth is president of Citizen Outreach, a non-profit public policy grassroots advocacy organization. He may be reached at chuck@citizenoutreach.com.