Tax Tips: SAGE advice for the 2011 Legislature

Isn't it funny how normally nice Nevadans can suddenly exhibit such strong emotions against each other when it comes to solving our state budget woes?

One crowd thinks that businesses should pay more taxes so we can continue to fund current wasteful spending habits (that both sides acknowledge exist). The other crowd (of which I consider myself a member of) thinks that only cuts in spending should be considered to solve the problem.

There is one bipartisan organization out there that has been suggesting a different approach that both "crowds" should consider. The Nevada Taxpayer's Association, among other things, suggests that we work to get Congress to enact legislation that would change the definition of "nexus." Currently, the narrow definition prevents Nevada from collecting as much as $220 million a year in sales tax from online purchases that it is entitled to by current tax law. Sounds simple enough!

Also, in a report just out by the Nevada Spending And Government Efficiency Commission (SAGE) entitled "Bipartisan Directions for Nevada's Future" by Frank Partlow, some interesting ideas have been advanced. I suggest this book for reading from cover to cover by all Nevada Legislators.

GRANTS MANAGEMENT

COORDINATOR

Such a coordinator could result in a 3 percent increase in federal grant funding in the first year and a 10 percent increase by year five. Bringing in more than $300 million a year.

SUNSET COMMITTEE: Create

and appoint this committee to establish a formal review process for, and on an annual basis, recommend elimination of outdated state entities, abatements, earmarks, and exemptions. Estimated savings could be more than $30 million a year.

OUTSOURCE DMV AUTO INSURANCE VERIFICATION: Currently, the process used is very outdated and inefficient. Other states have successfully outsourced this completely. Total savings over five years could be as much as $20 million. (And it might speed up those lines at the DMV too.)

PUBLIC EMPLOYEE BENEFITS: Bring them in line with the private sector. Currently, Nevada is spending $200 million a year MORE for benefits than if the state's employees had the same jobs in the private sector.

CLOSE THE CARSON CITY PRISON ON 5TH STREET: This facility currently requires more than $40 million in required improvements just to bring it up to code. By moving the inmates to other facilities, after considering all related costs, this alone could save Nevada more than $140 million in five years. Also, authorize the DOC to establish an intermediate sanction facility for certain probation violators and offenders who are determined to be substance abusers. Savings in five years could be as high as $280 million. There are many other savings to be found in the prison system. These are just two.

These are six ideas that do not raise taxes and don't even touch education, saving as much as $838 million a year. These alone could potentially fix all of the projected budget shortfall. And I haven't even scratched the surface of all the other great efficiency savings ideas in the SAGE report.

• Kelly Bullis is a Certified Public Accountant in Carson City. Contact him at 882-4459.