One More Step

In 2011, a constitutional amendment was introduced in the Nevada Legislature. And somehow, it managed to pass that year despite the acrimony and frustration that came to define the 76th session.

Fast forward to 2013. Even though SJR 15 had managed to pass Round 1, Round 2 was suddenly in doubt. The mining industry had doubled up its lobbying campaign, and it looked like that was about to reap mining conglomerates a huge payday. But then, another strange twist occurred.

As soon as it became a rather eye-popping attempt at "Republican rebranding" and a "no brainer" tax reform plan with actual bipartisan support, Legislature leaders had no choice but to stand back and let SJR 15 sail its way onto the 2014 general election ballot.

Today, the Interim Legislative Commission approved the final ballot language for SJR 15. Despite some last minute mining industry shenanigans and an awkward argument over the physical impact of mining, the Commission ultimately approved the SJR 15 ballot language 11-1.

So now, there's just one more step left for SJR 15. "We the People" must vote on it this fall.

Ever since the founding of this state, the issue of mining taxation has been a rather contentious, irritating, and occasionally even nauseating one. In a way, it's quite fitting that the 150th anniversary of Nevada statehood will be remembered for the people's vote on fixing a long debated error in our state's Constitution. How better to celebrate 150 years of Nevada than to take one more step to on the path to a functioning state government and a more equitable tax system?

Same Old Story (No More?)

It happened again last month. The same old story unfolded in the Nevada Legislature as another clusterf*ck of a Franken-budget was passed. As usual, the social safety net was left tattered as the big corporate power players were allowed to get away with tax evasion paying hardly anything.

And you know what? It's not helping our economy. In 2010, Nevada scored near the bottom of CNBC's business friendly state ratings. Oh, yes. That's right. Those "wild eyed socialists" at CNBCwere appalled by Nevada's lack of public infrastructure.

Recently, CNBC released new business friendly state ratings. And Nevada still ranks near rock bottom. CSN history professor and Vegas Seven contributor Michael Green has something to say about this.

Our economy ranks last. The low-tax climate [Governor Brian] Sandoval [R-Denial] and others praise doesn’t exist in Massachusetts or New York, but their unemployment rate is lower and their ranking here is higher.

Further, Nevada is rock-bottom in education. Set aside us liberal-arts types—the ones who teach students to read, write and think so they can prepare for any job. Numerous business leaders have expressed displeasure with the Nevada System of Higher Education, including the Las Vegas Metro Chamber of Commerce. If we are as innovative and entrepreneurial as we claim—Sandoval isn’t the only guilty party here, and it’s his job to hawk Nevada—why haven’t we come up with ways to fix that area other than inviting in overpriced “educational reformers”—hello, former state superintendent James Guthrie and ex-Clark County School District superintendent Dwight Jones—to try to impose their will? While Sandoval praises Tony Hsieh and other innovators, how many of their high-tech corporations originated here, built by people who were educated here?

Also, Nevada ranks near the bottom in “quality of life.” That’s a broad term. But while the innovative and entrepreneurial want a good business climate, they also tend to like good schools, especially ones at the forefront of training others to be innovative and entrepreneurial. They might even want to go to parks, theaters and museums, and have access to the best possible medical care.

These areas bore the brunt of our budget cuts and tax phobia. It’s all of a piece. And the usual Nevada solution is for the Legislature to make believe it will study the problem, for the governor’s office to keep cutting and for state government to hire high-priced, out-of-state consultants to tell us what to do—the same kinds of out-of-state people we attack as carpetbaggers who tell us we’re bad. Just like CNBC did.

It’s the same old story. Our public infrastructure is constantly underfunded. Our people are constantly shortchanged. And this keeps happening because real tax reform is constantly avoided.

Why must we keep reliving it? Actually, we don't have to. The solution is fast approaching. We the People just need to be willing to do what the powers that be in Carson City have so far failed to do.

Are we ready to finally close the book on this sad, same old story?

Highlights of the Nevada Legislature (This Year)

So it's over. After 120 days of intrigue, drama, coaltion building, infighting, progress, backslides, cheers, tears, and so much more, we finally have a chance to reflect on what happened during the 77th session of the Nevada Legislature. So now that we have a chance to step back and reflect, let's take one more look at the 2013 Nevada Legislature.

Perhaps one of the greatest highlights of the session was the passage of SJR 13, the constitutional amendment to repeal the Question 2 marriage ban and enact marriage equality in Nevada. Here, the conventional wisdom of what had been considered "possible" in Carson City finally burst as we saw an outbreak of true courage. After the sharing of much heart-wrenching personal testimony, equality ultimately won the day... For now. We just have to do this all over again in two years... Unless federal courts deliver a big surprise in the coming weeks and months.



Another surprising moment was the second round of passage for SJR 15, the constitutional amendment to remove multinational mining corporations' sweetheart deal from the Nevada Constitution. While SJR 15 first passed in 2011, it looked to be on very shaky ground early this year as mining industry lobbyists doubled down to kill it. But then, a major twist of fate occurred as a prominent Republican (??!!) stepped forward to snatch a politically convenient way to kill IP 1 embrace mining tax reform. Yet even as his own mining tax scheme proposal died an ugly death, new life was quickly breathed into SJR 15. And after another shocking outbreak of courage in Carson City, SJR 15 ultimately sailed through the Legislature and onto our ballots next year.

And that wasn't all. The Nevada Legislature also surprised many by easily passing SB 303, the bill that creates driver's authorization cards for undocumented immigrants and other Nevadans with difficulties accessing personal documents (like domestic violence victims). The success was found in framing this as a critical driver safety issue... And in some Nevada Republicans' desire to fix their "Latin@ problem". So even as Nevada Republicans in Congress start succumbing to their toxic "TEA" and complicate efforts to pass comprehensive immigration reform this year, the Nevada Legislature found one way to work around their obstruction.

But wait, there's even more! SB 374, the bill to authorize medical marijuana dispensaries in Nevada, finally passed at the last minute. The state has been facing legal trouble over confusing current law, so there was an opening to act. Yet while another bill to fully legalize marijuana never saw the light of day, a surprisingly bipartisan coalition for medical marijuana emerged. And after a surprisingly bizarre last minute hiccup, the bill finally passed on the final day and headed to Governor Brian Sandoval's (R) desk (where he has yet to sign or veto).

And finally, we saw some encouraging environmental progress in the passage of SB 229. Like SJR 15, this bill had some troubling history behind it. In 2011, the Legislature agreed to SB 271, a bill meant to tear apart the regulatory framework protecting Lake Tahoe. And even worse, it was done simply because of juiced up power players' greed and disgusting backroom politics. That's why Governor Sandoval initially threatened to veto SB 229 (and keep 2011's SB 271 on the books). But after California stepped in and threatened to "go it alone" to protect Lake Tahoe, Governor Sandoval soon flip-flopped and embraced SB 229. And all of a sudden, Nevada then decided to keep Tahoe blue after all (yet it remains to be seen just how much blue and green will ultimately remain there).

And there's even more to discuss. But if I keep writing, I won't ever stop. So we'll leave it here for now, and we'll soon pick up where we left off in reliving the most memorable moments of the 77th session of the Nevada Legislature.

Special Session?! (Yes, We're Going to Overtime.)

It's over now. Wait... It's supposed to be over now. Isn't it? Isn't it... WHAT?!





I know I wasn't the only one who was shocked to wake up to the 27th special session of the Nevada Legislature. But alas, it's now here. And Governor Brian Sandoval (R) has already been cooking up schemes to try to take advantage of this.

The special session proclamation arrived just before 4 a.m., directing legislators to convene at 4:30 a.m. and end at 8 a.m. to consider five bills.

Perhaps the most significant measure to die at midnight was Assembly Bill 496, which would have allowed the Clark County Commission to raise taxes to fund more police officers. That bill was first on Sandoval's list.

The governor also directed the Legislature to take up the measure that directed $2 million to the national nonprofit organization Teach for America. Recognizing that the bill would likely die in the Assembly, where Democrats strongly oppose the measure, Sandoval recommended instead that the money be directed to the Millennium Scholarship Fund.

Also on the proclamation is a bill to changing the oversight of the state's Charter Schools account, a bill on class-size reduction policy and another bill on tax abatements for economic development.

"The key bill is the More Cops bill," Sandoval's chief of staff Gerald Gardner said. "The second is the TFA bill."

Indeed, it was a the More Cops bill that set off a mad, last-minute scurry in the final seconds before the midnight close to the 2013 regular legislative session.

Governor Sandoval has been trying to sneak in some school privatization since last week. But so far, most legislators aren't biting. So instead, Governor Sandoval is agreeing to toss additional tobacco law suit settlement money into the Millennium Scholarship (but of course, not into health care for lung cancer victims or tobacco addiction prevention).

So how did we get here? Well, the 77th (regular) session did turn out to be quite a busy one.

Indeed, Democrats, who control both houses, pushed a number of liberal bills through the Legislature this session on issues lawmakers have largely been loath to broach before.

The gay marriage ban may be on its way to a voters repeal in 2016. Voters can decide whether to take mining’s tax protections out of the constitution in 2014. Immigrants here illegally will be able to get a driver’s authorization card in 2015.

A bill to require background checks on private party gun sales is on its way to Sandoval. Another measure would allow medical marijuana dispensaries to open in Nevada next year. And if fracking takes off in rural Nevada, a bill exists to regulate the controversial practice.

“It really is a sea change,” said Sen. Tick Segerblom, D-Las Vegas, who pushed many of the bills on the progressive agenda. “Last session, we couldn’t even get a hearing on marijuana.”

Indeed, SJR 13 (marriage equality), SJR 15 (mining tax reform), SB 229 (saving Lake Tahoe), SB 303 (driver's authorization cards), SB 374 (medical marijuana dispensaries), and even more critical progressive supported bills passed this spring. To be fair, there actually has been plenty of progress in Carson City this year. Yet with that being said, we did ultimately run into the same problem we always seem to have in Carson City.

Yet even on overall tax reform and restoration of our state's public infrastructure, We the People will have the opportunity to provide leadership next year when SJR 15 and The Education Initiative will appear on our general election ballots. Yet because the Legislature couldn't get modest class size reduction legislation and authorization for more police officers for Clark County (funded by a surtax on sales tax here in The South) to the Governor in time, we're going to overtime.

And while we may have a few more days of wild song and dance routines, we already have a strong sense of what has to happen going forward.

Finally, Ready for Change?

This spring, we've seen all sorts of tension, drama, brilliance, achievements, breakthroughs, madness, setbacks, meltdowns, and more in Carson City. We've even seen this. Oh, and we've even seen this.

Late last month, many progressives were stunned and upset when AB 230 encountered a shocking demise. How on earth could such common sense policy to protect teens in school encounter such a ghastly demise in the Nevada Legislature? Today, we have another #FAIL to add to the #NVLeg pile as SB 221 looks to be encountering a similarly shocking and ghastly demise.

“I’m worried about the penalty,” said Assemblyman James Ohrenschall, D-Las Vegas. “It worries me how we inform the public so unwitting people don’t become criminals.”

Lobbyists working on the bill said that legislators like Ohrenschall are worried that Southern Nevada’s large bilingual population might not understand the bill if it becomes law, and people might inadvertently be punished for their ignorance.

The bill already passed the Senate with 11 Democrats in favor of Senate Bill 221 and 10 Republicans voting against it. [...]

Meanwhile, [SB 221 sponsor Justin] Jones [D-Enterprise] moved half of the bill into another bill in an amendment, a move that could acknowledge the background check provisions may fail.

Jones’ bill would require speedier mental health reporting to proper federal authorities. That aspect of the bill could make it more difficult for the mentally ill to acquire guns, which earned broad bipartisan support. Gov. Brian Sandoval also is in favor of the reporting requirements.

Sandoval earlier said he would veto the background check bill.

Jones amended Senate Bill 38 late Sunday night in a quick meeting between senators and members of the Assembly, said Sen. Mark Hutchison, R-Las Vegas.

Apparently, there is one key difference here. At least this time, we have a better idea as to how and why SB 221 has stalled. Assembly Member James Ohrenschall is concerned about clogging up criminal courts over ignorance. And a few other Assembly Democrats have expressed concerns about certain provisions in the bill. And they, in turn, have unintentionally strengthened Republicans' hands as they move to kill the bill. So now, Senator Jones is left searching for ways to salvage the most universally accepted provisions of an already milquetoast bill with 86% public support.

This seems so pathetic. But sadly, this is reality in Carson City. This is the final day. And with not much time left and an absent Democratic Senator, there's virtually no room left for error today.

So of course, we're stuck with yet another dead bill where there should have been advancement on good policy. Meanwhile, the state budget looks to be moving just in the nick of time. Apparently, the rude awakening hasn't been enough to shake Carson City out of its failed status quo.

However, that doesn't require us to stay there. As we've discussed here before, We the People will finally have our "Carpe Diem moment" for tax reform next year as SJR 15 (mining tax reform) and The Education Initiative (IP 1, corporate margins tax) head to the ballot box. Next year, we will have the opportunity to finally do what the Governor refuses to do and the Legislature can't manage to do.

So where does this leave us? Go West, young people. Remember when we discussed the looming prospect of "Californication"? Guess what... We're here.

The more Nevadans learn about how multinational mining corporations have abused our tax code to pay virtually nothing for profitting off our natural resources, the angrier we get. And if the decision on how much to tax them moves from the Legislature to "we the people", the mining industry will probably have to kiss its sweetheart deal goodbye.

This probably also explains why "big bid'ness" power brokers (like Monte Miller?) fear the AFL-CIO's margin tax on big business. In addition to the mining industry, other big multinational corporations like to set up "on shore tax shelters" here in Nevada to avoid paying taxes. But really, what do we get out of it? After seeing them profit while Nevada families suffer from decaying schools and inadequate transportation infrastructure, Nevada voters may also be ready to finally make the big guys pay their fair share.

So in the end, Pete Ernaut may have a valid point in stating the problems with "ballot box budgeting" and waging electoral campaigns on tax policy. However when the Legislature won't tackle this, someone has to. And when Nevada is in real need of real reform that finally moves our tax code into the 21st century, we can't blame citizen activists for wanting to take matters into their own hands. And since Ernaut's own BFF in the Governor's Mansion encouraged obstruction on tax reform in Carson City last year, he should have realized that he helped bring "Californication" of Nevada policy making here.

Oh, yes. That's right. I just went there... Again.

So California, here we are. We've already been experiencing the failures as state government has gradually been breaking down and extreme ideology has taken the place of good faith negotiation. And because the Nevada Legislature only meets for 120 days every two years, this problem is exacerbated here.

But can we finally begin reaping the rewards of success? Probably. We the People just have to make it happen ourselves. This involves some "ballot box budgeting" now, but it will probably also mean serious structural reform of state government later.

After all, the failure of common sense policies espoused by the likes of AB 230 and SB 221 should be embarrassing to the powers that be in Carson City. As they quickly approach sine die, do they really want to "declare victory"? Do they really want the failed status quo to continue? Or are they ready for change?

Remember why bills like SB 221 and AB 230 died. Remember why we will be experiencing some serious "ballot box budgeting" next year. And remember why we can't afford any more failed status quo. I increasingly sense We the People are ready for change. Now, Carson City needs to be.

Only Just Beginning

This spring has certainly been a memorable one in Carson City. Yet during this 77th session of the Nevada Legislature, I couldn't help but think of what went down at the end of the 76th session. Remember the suprise Nevada Supreme Court decision that ultimately led to an unsurprising continuation of the status quo?

Remember the definition of insanity? We can't keep doing the same thing while expecting different results! We can't keep robbing Peter to pay Paul. We can't keep playing the same "accounting tricks" that ultimately got Enron into trouble. We can't keep avoiding reality.

The Nevada Supreme Court's ruling was a brutal reality check. And even if Brian Sandoval and most legislators continue to ignore the overarching message of that ruling to play more games and hobble together some sort of "Frankenstein budget", Nevadans are getting fed up with this nonsense. People out here are hurting, and they are wondering when they will see more job openings and how their kids will be able to get into college. Meanwhile in Carson, the debate is all about how [many] workers need to be attacked before schools can be allowed to stay open.

Wonderful. (snark)

But what if we don't want to keep going down this same road?

And that led us to think aloud about a different path forward.

It's now a question of whether Nevada will keep sputtering on its way to the bottom, or if progressives can turn this around and take advantage of this unique opportunity to inject more common sense into our state government. The days of Kenny Guinn and Barbara Buckley and Bill Raggio making "grand bargains" seem to be long gone. Term limits are taking away experienced legislators. Meanwhile, the power vacuum is being filled by corporate lobbyists, party central committees, and other outside forces.

So what can we do? In the long term, I still believe it's in our best interest that progressives work toward reforming state government to make it more responsive to the people and less beholden to special corporate interests. But in the mean time, we can't wait on the sidelines for the next two years while Nevada's people continue to suffer inadequate public education, health care, transportation, and other infrastructure necessary to make our state whole again.

So now, we have to ask ourselves not whether and when we will go to the ballot and ask the people to save our state, but how we will do so and who we will build coalitions with. Should we work with gaming and mining on a broad-based business tax? Should we work with other progressive activists on a corporate income tax? Should we push for some sort of mining tax reform? 2012 may seem like a long hike away, but it really isn't. We need to start planning now to take the first necessary steps to save our state and bring real progressive reform to Nevada government.

In many ways, it's started to feel like deja vu yet again. "Big talk" on tax reform has been replaced with tinkering around the edges (of a very broken system). And despite growing trouble arising from chronic underfunding of our social safety net, the chronic underfunding looks quite set to continue (albeit at a slightly less severe level).

Yet with this being said, something is different this time. This time, We the People will have the final say. 2014 may seem like a long hike away, but it truly isn't. And with The Education Initiative and SJR 15 going to the ballot box next year, this is only just beginning.

While we may yet see another politically convenient state budget full of ridiculously bad policy, something is different this time. It may not last too long. Voters will have the opportunity to finally put an end to the status quo next year. This is only just beginning.

Far from Finished

So this has been one hell of a Memorial Day weekend for many of us. It's especially been an awkwardly rough weekend for those citizen activists who worked tirelessly on AB 230 and improving teen safety. Last Friday, PLAN's Bob Fulkerson and Nevada Advocates for Planned Parenthood [NAPPA]'s Elisa Cafferata provided further perspective on what had just happened on "Ralston Reports".



Last Friday, we saw plenty of raw emotion explode all over the progressive blogosphere and social media. And yes, it even happened right here. I couldn't help it. I was so stunned, so verklempt.

Since then, we've had a chance to step back and notice the larger picture of what happened. For a "so angry one must laugh" take, check out Laura Martin's GIF loaded explanation. And if more catharsis is needed, check out Sin City Siren.



So now, let's take a moment and discuss the big picture some more. For so long, we've become accustomed to seeing the powers that be in Carson City as Kings and Queens of Pain who continually disappoint by agreeing to continue the failed status quo. That's actually a reason why We the People will be deciding on change at the ballot box next year.

Yet this session, we've also seen something we had not been accustomed to experiencing in Carson City: a slew of progressive victories. SJR 13 (marriage equality), SJR 15 (mining tax reform), SB 229 (saving Lake Tahoe), SB 303 (driver's authorization cards), and more progressive priorities have actually been advancing and winning in the Nevada Legislature. At times, activists have pinched each other to see if this is for real.

Yet while the bubble of happiness occasionally leaked with reminders of continuing fiscal madness, it didn't completely burst until Friday. The shocking demise of AB 230 reminded progressive activists of the continuing headwinds hindering further progress. How on earth could such common sense legislation aimed at protecting teens face such a ghastly demise?

It comes down to this: There's still a Republican Governor. And there are not enough votes in #NVLeg to override his veto(es). So it limits opportunities. Governor Sandoval had to be shamed into backing SB 229 and SB 303, and his action wasn't needed on SJR 13 and SJR 15. Yet on AB 230, he dug in his heels and refused to budge on his opposition... To educating kids on how to prevent teen pregnancies and spreading dangerous infections.

Could Senate Democrats have joined their Assembly colleagues in passing the bill anyway? Perhaps so. It would have been vetoed by the Governor, and perhaps it would have been fodder for the coming campaign cycle. (And it may still be anyway.)

Should Senate Democratic leaders have done this? It's often been recommended to "do what's right and let the consequences follow". I can't help but wonder why they couldn't have at least laid the blame directly on Governor Sandoval and shown everyone why comprehensive sex education couldn't become law in Nevada. Instead, there's no more bill... And these very Democratic leaders are being blamed for the bill's demise. Was it really good politics to treat good policy so badly?

Yet with that being said, it still would have resulted in AB 230's death. So what then? As NAPPA's Elisa Cafferata explained on Friday, there's still the possibility of parts of AB 230 being resurrected and amended into other bills. Perhaps this way, it will be harder for Governor Sandoval to veto it all way.

But whatever happens to the remains of AB 230 in the final days of the 77th session of the Nevada Legislature, progressive organizers and activists will again have to figure out how to regroup and move forward on this and other issues left by the wayside in Carson City. As we've learned the hard way on the above mentioned victories, they were all long and hard fought. They didn't come overnight, and they all met plenty of resistance along the way.



So what made the difference? You did. We did. The grassroots did. It took relentless advocacy to get us to the point where we are now. And clearly, we're still far from finished.

All too often, leaders in Carson City need for the grassroots to lead the way. That's clearly the case now. Regardless of what happens in the coming days, we're far from finished. One election can't change everything. Not even one legislative session can. It will take longer to achieve victories on issues like sex education and public education funding, but activists shouldn't throw in the towel just because of screwy politics in Carson City... Far from it.

We're far from finished.

SJR 15 PASSES #NVLeg, Goes to Voters Next Year

As we mentioned earlier, today is a huge day in the Nevada Legislature. Another of the bills receiving a final verdict in the Assembly is SJR 15, the bill to take the mining industry's corporate welfare sweetheart tax deal out of the Nevada Constitution.

There was some debate on the floor. And Assembly Member Pete Livermore (R-Carson City) offered this insightful quote.

Root Beer speech ! #NVLEG #SJR15 No more ROOT BEER if you kill off mining !!!! #RootBeer #Fries

Oh, yes. That's right. Assembly Member Livermore actually compared multinational mining corporations to his A&W franchise!

The bill passed 26-15. Again, Peggy Pierce (D-Las Vegas) was absent. Otherwise, all the Democrats present voted in favor while all the Republicans voted against.

And now that it's finally passed the Legislature in two consecutive session (it also passed both chambers in 2011), this finally heads to We (Us) the People.

Voters will now weigh in on NV's constitutional mining tax cap next year RT @RGJRayHagar: SJR15 passes Assembly, 26-15. #NVLeg

So this moves to the 2014 general election ballot for final approval. It may not be all that easy...

As reported by @RalstonReports, mining tried to bribe #NVLeg $50mil to kill SJR15. They'll spend at least as much to defeat it in Nov '14.

But now, we can finally look forward to our Carpe Diem moment with this and The Education Initiative on our ballot in November 2014. And even though she may no longer be serving in Carson City, Sheila Leslie's legacy just became even more awe-inspiring today.

Let's toss a little love to @sleslienv who was big on #SJR15 !!! #NVLEG

And on we go...

The Big Question

Last Thursday, newly minted Nevada State Board of Education President Elaine Wynn described our public education system as "grossly underfunded". And she's not alone in saying this. We've been warned for years that we need better schools and better public infrastructure for a better economy. And Nevada now risks a costly law suit because our schools are so underfunded.

So far this session, we've seen jockeying in Carson City over the issue of education. A #NVLeg Republican has even stepped forward with his own tax reform plan to provide more public school funding. Unfortunately for him, he can neither amass a majority of legal experts nor a majority of his own party behind his proposal.

So where does that leave us? Here?

The plan would raise the payroll tax to 2 percent on mining, making it commensurate with financial institutions. Every business with a quarterly payroll of more than $62,500 will pay 1.5 percent (it is now 1.17 percent).

The source says the tax changes will result in $255 million over two years. Additional changes from the Economic Forum and other sources could get the plan to $310 million.

Here's how the three-tiered plan was explained to me:

Mining/financials: 2%

Everyone over 62,500: 1.5%

Nobody gets penalized if they go slightly over 62,500, they get hit with a smaller rate for the difference between 62,500 and what their actual payroll to a certain threshold is. For example, if your payroll is 62,501 you pay for that 1 dollar. So essentially, only the big folks will see a change are the bigger payroll companies, for everyone else everything stays the same.

This is supposed to be part of the compromise budget that #NVLeg Democratic leaders are offering to Republican leaders and various "business leaders". And hey, at least this seems to be legal. And it does provide more school funding.

Yet with that being said, something still doesn't feel right about this. Some are still suggesting that this should replace The Education Initiative. Really?

Yes, I know the Legislature is where tax policy should be handled... Ideally. And our teachers & students shouldn't have to wait for next year's election to receive the resources they need. Yet with that being said, can we afford any more band-aids on the giant stab wounds?

Of course, there's more of this to be released. We'll see where it goes. But at this point, I'm wondering if any of the latest tax proposals to float around Carson City is truly preferable to letting the people decide next year (and do so with real solutions). We've seen the FAIL train leave the station there many sessions before. Will this session actually be different?

Unacceptable

Is this NEAT or what? Earlier this week, we caught a whiff of Assembly Speaker Marilyn Kirkpatrick's (D-North Las Vegas) latest tax bill. And now, we have NEAT... Which is also referred to as AB 498.

Last night, Speaker Kirkpatrick appeared on "Ralston Reports" to discuss her proposal for the Nevada Entertainment Admissions Tax (NEAT). It replaces the current Live Entertainment Tax that levies 5% on some venues, 10% on others, and 0% (no, really) on others, with an across-the-board 8% rate that applies for everything from Strip shows to movie theaters to golf courses. And it's rumored to bring in at least $50 million this session.



Apparently, this is the beginning of #NVLeg Democratic leadership's rollout of their official tax plan. Ralston wrote earlier today about the full tax package that's being cooked up as we speak. Apparently, it will raise roughly $350 million in the coming biennium (with AB 498 included).

Yet before it can raise any money, it has to pass. How can it pass? Ralston envisions a scenario where Democratic leaders enter into a pact with "The Senate GOP Mod Squad" and various corporate lobbyists to force the unions to give up The Education Initiative in exchange for yet another "Frankenstein Budget".

This is the dream scenario – and not just for Democrats. As the business community – or at least some – and the gaming folks – or at least some –realize that the the margins tax on the ballot could pass unless the teachers are willing to euthanize it, many here in the capital are starting to talk about such an endgame scenario.

But is this the stuff of Grimm, or a grim reminder that some sort of ugly mishmash of taxes, cobbled together to reach a number and without regard to policy, likely will pass this session, as so often happens? Or is this unlikely to become even a fractured fairy tale, with the denouement being that partisanship will trump cooperation and the teachers will whistle a merry tune on their way to the ballot in 2014, with gobs of money spent against the margins tax and a chance – a chance – it passes anyhow.

Perhaps this is just a reminder that we can no longer band-aid and "quick fix" our way out of a long brewing systemic disease. For far too long, Nevada "leaders" have patched together budgets that looked "reasonable" on the surface, but ultimately did little or nothing to truly fix our long-term problems. Case(s) in point: 2003... And 2009... And 2011.

As the 76th session of the Nevada Legislature came to a close in June 2011, I asked why We the People should not finally go to the ballot box to fix what couldn't be fixed in Carson City. And frankly, I'm still asking that today. Why not just do it already?

Let's face it: The two main tax plans being discussed up there now are shit sandwiches. One is likely illegal and definitely political(ly toxic). And while the other one has some decent elements, it's just another hodge-podge of patchwork that doesn't really fix the root problem or cure the systemic diseases of regressive taxation & chronic underfunding of our public infrastructure. Both may be better than what we have now, but neither offers a true cure.

Something must change. The status quo in Carson City is no longer just unpalatable. It's now simply unacceptable. And if the Governor and (many) legislators still can't see that, then it's time for We the People to change it.

Priorities

What a day we saw in Carson City. Yesterday, we saw some bizarre misplaced priorities on display there. We saw shock & awe at the Nevada Legislature as actor & filmmaker Nicholas Cage made a surprise appearance there.

“I know investors around the world. I could give you names. Give me six months and I’ll give you a list of names of folks who would love to come to Nevada to make a movie,” he said.

Cage was testifying in favor of Senate Bill 165, sponsored by Sen. Aaron Ford. The measure would provide qualified film producers transferable tax credits worth 20 percent of production costs. Additional tax credits would be given for hiring Nevadans. [...]

“I’m trying to make an investment in the culture of our state,” Cage said. “It’s not just a financial thing; I’m trying to make an investment in the perception of Nevada. I’m someone who travels the world quite often. I’m at work in different parts of the world. I’ve met many people around the world, and I want them to go to the movies and see how beautiful our state is, because it actually works." [...]

Carole Vilardo, president of the Nevada Taxpayers Association, testified against the bill, saying it doesn’t make sense for lawmakers searching for new revenue for education and other services to grant tax credits.

She also criticized the language of the bill itself.

“This is totally open-ended where the laundry list of everything in the world would be open for exemptions,” Vilardo said.

If enacted, SB 165 will offer tax credits for film production here in Nevada. That includes movies and TV shows. At the surface, this looks like interesting job creation legislation. And isn't that what the Legislature is supposed to do?

Honestly, this doesn't seem like a completely bad idea in and of itself. Yet with that being said, SB 165 does come with a $35 million price tag. And it seems so awkward that Nevada may be willing to toss $35 million to the entertainment industry, yet our state can't take care of our own. We're even risking costly law suits because of that.

As we discussed yesterday, something looks wrong here. Why does our state continue to hand out corporate welfare endless tax breaks in hopes of luring this or that company here, yet our "leaders" continually claim "we can't afford" to mend our tattered & torn public infrastructure? What's more important to economic development than good schools, good health care, and good transportation options?

In and of itself, SB 165 doesn't seem so bad. But in examining the big picture, we must ask ourselves what our priorities are. Are we providing our kids with quality public education? Are we ensuring everyone can access the health care one needs? Are we creating the kind of environment that businesses will want to grow in? Are we taking care of our own?

How has the mound of corporate welfare given to Apple helped our state? How has the stockpile of corporate welfare offered to multinational mining corporations helped our state? And how has the sweetheart deal offered to big box retailers and other multinational corporations profiting off our state helped?

Think about it. We must rethink our priorities.

The Deep Hole in Carson City

We've seen this so many times before. Gun safety reform fell because of it. Comprehensive immigration reform is now on shaky ground due to it. And of course, austerity and manufactured crises are all the rage on Capitol Hill thanks to it. Thanks to "tea party" obstructionism, it's incredibly difficult to pass anything in Congress now.

Yet like our new state slogan, Nevada seems to be "A World Away, A State Apart". After all, several Republican legislators in Carson City have come forward and offered to break the logjam on tax policy. In fact, some "tea party" faithful there are frustrated.

[Assembly Member Jim] Wheeler [R-Gardnerville] admits he’s in the minority in Carson City. He laments what he sees as the leftward shift of the Republican Party in response to recent trouncing at the polls.

“Republicans seem to be trying to come to the middle,” Wheeler said. “But people won’t vote for that. People don’t vote for a party that changes its ways. People vote the person who sticks to what they say.

“Now, we have to cater to minorities? Cater to gay marriage? Because the world is changing? That’s true. But American values are not changing.”

No, American values are not changing. However, our understanding of those values clearly has. And funny enough, a Republican has stepped forward to confirm this.

“I try to do what is best for the state of Nevada,” Kieckhefer said on Nevada Newsmakers Thursday morning. “I don’t try to pander to a party of a part or edge of a party.”

Kieckhefer defended his marriage equality vote as a vote “of my conscience.” [...]

“I have a strongly Republican district but there are a lot of families in the district and it may not be as conservative as you are painting it to be,” Kieckhefer said. “It is a strong Republican district but with the bandwidth of conservatism. I’m not sure that it’s the most conservative district in the state.”

State Senator Ben Kieckhefer (R-Reno) has been making news lately for staking positions (like support for marriage equality) that challenge contemporary G-O-TEA orthodoxy. But then again, that's just it. G-O-TEA orthodoxy is still quite powerful. (And Richard Ziser is threatening to primary Senator Kieckhefer.)

After all, look at the "TEA" fueled revolt against Senator Michael Roberson's (R-Henderson) IP 1 alternative mining tax. And remember, he proposed it to try to fend off IP 1/The Education Initiative! But now, he can't even get the Governor and Assembly Caucus from his own party to consider his plan.

And then, there's Governor Brian Sandoval (R). He offered another serving of "The Sunset Taxes" to fend off any and all kind of serious tax reform (even Senator Roberson's). Yet even with that, the "tea party" balks.

And then, there's the scope of Nevada's tattered public infrastructure. We're facing law suits over chronic underfunding of K-12 public education and mental health care. And that's only just the beginning of the consequences we're starting to feel for not setting up a proper social safety net so we can truly care for our own. Sandoval's "Sunset Solution" only essentially drops a few extra pennies in that deep bucket. And while Roberson's proposal offers more, it's legally questionable and mired in troublesome "triangulation" politics.

So may we finally seeing some Republicans break free from "G-O-TEA" orthodoxy? Perhaps so. That's why the state may be able to pass a workable budget in June while Congress is still stuck in a stalemate. Yet with that being said, Nevada's fiscal and social problems run far deeper than a few extra million dollars that Governor Sandoval wants to toss into the state budget. We still have a very deep hole to crawl out of. The hole in Carson City may not seem as scary as the one in Washington, yet it nonetheless causes us trouble.

Writing on the Wall

Yesterday, Governor Brian Sandoval (R-Denial) received some good news. The Nevada Economic Forum projected $5.85 billion in revenue for the next biennium. Add in the nearly $600 million that Governor Sandoval wants to squeeze out of the Sunset Taxes (again), and the "GovRec" budget is about $44 million under the new projection.

So this is good news... Right?

“It shows we are not recovered,” Sen. James Settelmeyer, R-Minden, said. “We are not doing great.”

“Its peanuts, really,” said Ira Hansen, R-Sparks, referring to the $44 million more that Wednesday’s projections produced. [...]

“The only way we are going to get more for education is to raise revenue,” said Sen. Debbie Smith, D-Sparks, and the chairwoman of the Senate Finance Committee. “It is clear that our current situation is not going to do it.

“The speculation and comments that we have heard, that we will grow our way out (of the recession) so we can better fund education really doesn’t appear to be the case,” Smith said. “So we have to take a hard look about where we are.”

Democrats were expected to propose a new tax package that could include removal of many loopholes in the Live Entertainment tax and tweaking the Modified Business Tax.

“We were kind of treading water until we saw what happened today,” said Smith, speaking of the Forum. “We wanted to see what the extra revenue looked like.”

While they won't publicly admit it, it's starting to look like legislators are realizing that Nevada is indeed in great trouble. The state may soon be slapped with a law suit over inadequate public education funding. In addition, the state is already mired in hot water over the burgeoning mental health patient dumping scandal. Long story short: We're in deep s**t, and $44 million isn't nearly enough to fix decades of chronic underfunding of our public infrastructure.

Yet while the State of Nevada is still struggling, The Strip increasingly looks like Easy Street. Just today, MGM Resorts posted its first overall net profit since 2008. And Wynn Resorts continues to post strong earnings while looking for expansion opportunities.

Yet yesterday, Steve Wynn actually tried to cry poor in Carson City. No, really. See this.



So of course, Wynn won't allow for any gaming tax hike. But of course, that was never really being considered. I guess he's just so paranoid concerned about it that he wants to prematurely kill it by having legislators consider mining tax reform instead. At least on this, his wish is being granted today.

Feeling increasingly cornered, mining industry lobbyists are lashing out in Carson City today. They're decrying "economic populism". And they're claiming SJR 15 will destroy the world if enacted. And of course, reality continues to chime in and suggest otherwise.



Mining industry lobbyists have been working for a long time to quell any possibility of mining tax reform. But when even other parts of the previously united business lobby are breaking away and pointing fingers at mining, we have to notice that writing on the wall. And of course, when Nevada has its back against the wall in struggling to keep up with glaring needs, that writing on the wall becomes even clearer.

Something has to give. Something must change. The state needs more revenue. And the mining industry can certainly afford to pay its fair share.

Of course, this is still far from over. Mining lobbyists continue to fight like help to stop any & all mining tax reform. And the IP 1 "Mod Squad" clusterf**k threatens to complicate what should be a clear cut issue.


Yet with that being said, there's now an opening. The writing on the wall clearly points to it. Will legislators finally take it?

All That Truly Matters

Over the course of this month, we've seen even more tossing & turning in Carson City over matters of tax reform. Some proposals have died gruesome deaths up there, while others received a sudden and unexpected burst of new life. So far this session, we've seen plenty of fascinating twists & turns.

And now, another one is coming... Or maybe not. We just know Senate Democrats will be releasing their own tax reform plan later this week.

Senate Majority Leader Mo Denis says Democrats are putting the final touches on their plan to tweak Nevada’s tax structure to bring in more money for education and other services.

But the Las Vegas lawmaker says they will await final revenues projections due Wednesday from the Economic Forum before introducing their plan in bill form.

The Economic Forum is an independent panel charged with forecasting Nevada revenues for the next two years.

Democrats also have not closed in on how much additional revenue they want to generate. Among things being considered are revamping the state’s live entertainment tax.

Well, at least we can say the Senate Democrats are moving away from Assembly Speaker Marilyn Kirkpatrick's (D-North Las Vegas) revenue-neutral sales tax clusterfuck proposal. I guess that's a start. So what's actually in their plan? We'll have to wait & see, but I wouldn't suggest getting your hopes too high (for this).

And you know what? It's OK. Regardless of what Democratic leaders settle for in Carson City this session, We the People will ultimately decide next year. And that's what has some Republicans in Carson City nervous.

So far, The Education Initiative (IP 1) has strong support among voters despite the "Tea Party, Inc." smear campaign against this initiative aimed at making the largest corporations doing business in Nevada pay something closer to their fair share. (They currently pay a rate just barely above nothing.) Perhaps this is why Senator Michael Roberson (R-Henderson) decided that the best way to beat IP 1 is to join it on the ballot box. At first, it seemed like Roberson hatched up the perfect strategy to triangulate Nevada Republicans into the political sweet spot while tearing Democrats & progressives apart. There's just been one problem with his plan: his fellow Nevada Republicans!



Oh, and there's another problem with this: the law! Despite the constant spin from certain Republican Senators and their media pundit cheerleaders, the fact remains that Governor Brian Sandoval (R), Attorney General Catherine Cortez Masto (D), Secretary of State Ross Miller (D), and several more lawyers who have studied this issue have all determined that Senator Roberson's IP 1 mining tax alternative is unconstitutional. They really can't blame Democrats or their fellow Republicans if/when the courts strike down any further attempts to pursue this.

Yet despite the political and legal controversies surrounding Senator Roberson's IP 1 mining tax alternative, SJR 15 remains. And there are no political hijinks here. It just removes mining industry bailouts from the Nevada Constitution. And all legislators have to do is approve it a second time this year so We the People can vote on it next year. And once voters approve SJR 15 next year, the Legislature will finally have the power to change mining tax rates.

Really, that's all the Legislature needs to do this spring to make real change possible. The Senate has already passed SJR 15 overwhelmingly this session. Now, it's the Assembly's turn.

There will be plenty of gossip in the next few weeks over supposedly grand tax reform plans. But really, it all comes down to just two initiatives. One is already guaranteed a spot on next year's (general election) ballot, while the other just needs one more vote of approval from the Assembly. And regardless of what certain media pundits hyperventilate about any further political positioning in Carson City this year, all that truly matters now is what We the People will be voting on next year.

Unspinning the Coming "Mod Squad" Mining Tax FAIL

This morning, we examined why evolving is so hard to do for Nevada Republicans. On one hand, their base wants more ideological "purity". But on the other hand, the rest of the voters have been consistently rejecting what their base demands. So what are Nevada Republicans to do?

Senate Minority Leader Michael Roberson (R-Henderson) seems to be eyeing change regardless of what the "tea party" naysayers say. He may have backslid on marriage equality earlier this week, but Senator Roberson is back on "The Mod Squad Express" as he keeps pushing his troubled IP 1 mining tax alternative. And it's driving Chuck Muth even crazier (than he's already been whenever "Roberson" falls out of anyone's mouth).



Of course, this has Jon Ralston worked into a frenzy. He had Senator Roberson on his show last night, and he was waxing poetic yesterday on the doomed tax initiative. Oh why, oh why, won't anyone else give "The Senate GOP Mod Squad Mining Tax Alternative" a chance?!

Maybe Roberson could have been more inclusive when he first spring the mining tax plan. But the “if Roberson says black, we’ll say white” attitude from Democrats is pure petulance, imputing his announcement only to killing the margins tax the business community abhors (he has been open about that) and giving him no credit for going after mining (as some of them and many of their allies have long wanted to do).

Even if they think Roberson is a shameless grandstander, why not embrace his effort if they really want more money for education? Are they really going to say they are opposed to a mining tax? Are they going to claim they prefer a broad-based solution, which they have yet to provide and, my guess is, will not offer? [...]

I have mentioned before that many people in the building – Democrats, Republicans, lobbyists – don’t trust Roberson. That is his biggest hurdle – and it may be insurmountable. He is a bull in the legislative zoo, and the other political animals are not amused.

Why folks don’t think he is trying to rebrand the GOP while also killing the margins tax, helping fund education and perhaps taking the majority is beyond me. It’s a triple bank shot, but that is what he is up to. It’s the only thing that makes sense.

“I want people to start looking at the Republican Party differently,” Roberson said Wednesday. “We can’t be the party of no, no, no.”

I can't believe this is actually necessary. But since Ralston keeps beating this dead horse, I guess we'll have to do it. So here we go.

First off, the law doesn't seem to favor Roberson. Sure, he got the LCB to write him favorable opinions. But at this point, it's three against one in Carson City as Governor Brian Sandoval (R), Attorney General Catherine Cortez Masto (D), and Secretary of State Ross Miller (D) all declaring his initiative unconstitutional. Why? As we've discussed here before and Amicus Nevada has continued to explain, the Legislature's failure to actually vote on IP 1 (aka The Education Initiative) and propose an alternative by March 15 has created a steep legal hurdle. The LCB opinions have had to find some rather creative ways to stretch Article 19 of the Nevada Constitution to justify continued pursuit of "The Mod Squad Mining Tax".

Yet while Senator Roberson and his allies find new legal arguments for their mining tax alternative, they haven't been able to find any new votes. And while he keeps trying to blame Democrats for this, the fact remains that he can't even get the rest of his Republican Party to back his initiative. He may be a titular Republican leader, but the heart of the party still very much looks to be with Sharron Angle. Nevada's own "Tea Party Queen" appeared in Elko earlier this week to promote her new book, but she also didn't hesitate to talk about her new plan to grow more "tea party" candidates for higher office.



Sharron Angle clearly refuses to go away. And really, why should she? The G-O-TEA base still sides with her on the issues. And on top of that, she may soon find new and previously unlikely allies, as the mining industry has been preparing to declare political war on "The Mod Squad". Oh, and as mentioned earlier, Governor Sandoval has no interest in backing up Senator Roberson on his mining tax alternative.

Perhaps this is why Senator Roberson prefers to deflect blame onto Democrats. It's easier for him to blame Democrats than to admit that the law and the bulk of his party don't seem to agree with him.

Now don't get me wrong. I'm not saying all Democrats have been angels when it comes to preparing a proper state budget. Far from it, I have not hesitated to criticize Democrats when they were wrong. But come on, one can't blame Democratic leaders for keeping their distance from a tax initiative that's legally questionable at best and creating even more chaos within Republican ranks.

So just keep this in mind next time some media pundit for Republican Senator tries to deflect blame for the failure of the tax initiative that was never to be.

Senator Roberson's $600 Million Question

Last night, we got word of Senator Michael Roberson (R-Henderson) finally unveiling his IP 1 alternative mining tax initiative. Today, it's finally been revealed. Here's Ralston with his take.

On the day marking the two-thirds point of Session '13, state Senate Minority Leader Michael Roberson and five of his GOP colleagues plan to unveil a $600 million a biennium net proceeds tax on mines, sources confirmed.

The so-called Education Priority Initiative from the folks I have affectionately dubbed the Dirty Half-Dozen would be promoted as a way to reduce class sizes by hiring teachers, fund English Language Learner programs and set up a stabilization fund dedicated to education. The mining tax would be earmarked only for education funding.

The tax would take effect in November 2014 and assumes passage of SJR 15 (taking mining taxation out of the Constitution where net proceeds is capped at 5 percent). I also understand that the tax would apply to operations with net proceeds exceeding $4 million a year, and the operations would still be obligated to pay above that to local entities mandated under the current law. That's clearlly designed to remove any argument this would harm local governments and school districts.

Clearly, Ralston is excited by this. However, there are two major problems. And Ralston himself knows what they are.

One is the law. At best (for Roberson, that is), the Nevada Constitution is unclear as to how legislators can propose an alternative to a citizen's initiative, especially when the Governor would rather not. At worst, Governor Brian Sandoval (R), Attorney General Catherine Cortez Masto (D), and Secretary of State Ross Miller (D) are all correct in finding Roberson's proposal unconstitutional.

The other problem is the politics. As we've discussed before, Roberson's proposal has led to yet another major division among Nevada Republicans. While Roberson assembled a Senate GOP "Mod Squad" of six to support it, Governor Sandoval, the other Republican Senators, the bulk of Republican Assembly Members, and the "tea party" activist base of the party have all aligned against it. Roberson desperately needs Democrats for this to have any chance of passage, but Democrats so far look to be keeping their distance from any proposal to ratfuck harm The Education Initiative that's already legally qualified for next year's general election ballot.

So where are Senator Roberson and his tax initiative supposed to go from here? Right now, that's the $600 million question.

Finally, Status Quo May Be No More.

This week looks to be another hectic one in Carson City. History is already being made everywhere we look in the Nevada Legislature. So it's understandable that some matters are being overlooked during such a busy time.

However, this is also important. After all, we're about to talk about the state's budget. And we're about to talk about "The T Word".

Back in February, we heard plenty of banter on "revenue-neutral reform". But today, that doesn't look to be going anywhere. Why not? Basically, people just didn't like it.

But with just 41 days left, Speaker Marilyn Kirkpatrick, D-North Las Vegas, said any effort to pass a services tax is dead and sounded less than optimistic about the chances of any kind of broad-based business tax making it to a vote.

Kirkpatrick blamed a flurry of press reports on the services tax for its demise.

“You killed it,” Kirkpatrick told a Sun reporter last week. “You got all the Democrats against me on it before I even had a chance to explore it, so I didn’t even explore it.”

The idea of expanding Nevada’s sales tax to services such as legal advice, accounting and hair dressers was originally introduced in Nevada by a Democrat last session. But in the past two years, Republicans around the country have launched an effort to move away from income taxes and toward consumption taxes such as a services tax.

Actually, Speaker Kirkpatrick, the media themselves didn't kill it. Lack of public support killed it. And perhaps the fact that it was just plain bad policy had a hand in killing it as well.

And then, there's this. Last month, Senate Minority Leader Michael Roberson (R-Henderson) leaped ahead of Kirkpatrick, and even seemed to lurch to the left of her at first (??!!), with his wild & crazy IP 1 alternative mining tax proposal. In the wake of that, whatever momentum was left for "revenue-neutral" sales tax extension dissipated quite quickly. Of course, it didn't take long for this to run into serious legal & political roadblocks. Yet despite that, Roberson at least succeeded in completely reshaping the contours of the Nevada Legislature's tax debate.

And that, in turn, revived political fortunes for SJR 15 and mining tax reform. In February, SJR 15 looked to be near death. But now, there's tremendous pressure for the Assembly to act soon following the Senate's resounding 17-4 passage of the bill to take the mining industry's tax policy bailouts out of the Nevada Constitution.

And then, there's The Education Initiative. Funny enough, Roberson constructed his mining tax alternative for the expressed purpose of defeating the actual IP 1. But instead, his and other Republicans' case for restoring social safety net funding can now benefit The Education Initiative since it's the one tax reform initiative left standing. Who could have guessed defeat would soon open the path to victory?

It's been a wild and crazy ride so far for tax reform during the 77th session of the Nevada Legislature. And it still has another six weeks to go. Perhaps there may be more surprises. Or perhaps the Legislature will settle for the status quo again. Yet even if the latter occurs, it may ultimately be temporary. Whatever comes out of the Legislature by June, we'll finally have the chance to vote on real reform next year. And that's real progress.

Finally, Shortchange No More?

Back in January, we looked at the burgeoning campaign by powerful Southern Nevada interests to redo the state budget in a way that redirects money south. So far, there's been some success as the higher education finding formula will likely be changed. And with the threat of SB 322 clearly being felt, Clark County is already receiving 80% of state transportation project funding this year.

So there's already progress underway in redirecting state funds. Yet even with this, the Nevada Legislature's Southern leadership still seek more.

“If Southern Nevada gets a cough, the whole state gets a cold, and if you think about that analogy, when things don’t go well in Southern Nevada, everybody else feels the repercussions, as well,” Assembly Speaker Marilyn Kirkpatrick, D-North Las Vegas, said.

“Fair” can work like this: Behold, northern counties, as legislators shift money to Clark County, the most economically important county in the state.

“We want to be fair to everyone, but part of being fair to everyone is being fair to the south,” Senate Minority Leader Michael Roberson, R-Henderson, said.

And we know the facts & figures behind their rhetoric. Clark County has over 70% of the state's population. And Clark County funds over 80% of the state's budget. Yet despite this, Clark County is "lucky" to muster just over 50% of state investment.

Again, some changes are now underway. And there will certainly be even more in the works by the time sine die approaches. Yet with this being said, there are even more areas where Southern legislators see inequities that must be fixed.

One such area is K-12 education. In Clark County, many can't even access full-day Kindergarten. Clark County schools have also been struggling to properly provide required English Language Learner (ELL) programs. This is why Senate Majority Leader Mo Denis (D-North Las Vegas) has pretty much threatened to do whatever it takes to secure more funding for Clark County schools. It's now just a matter of how much backup he will get from Kirkpatrick & Roberson.

Southern leaders also caution that more needs to be done, even on higher education & transportation funding. Just a couple sessions worth of more money can't make up for historic funding inequities and continuing drawbacks in current funding formulae. So what can be done? And how does that happen?

This is why many education activists have called for not just funding formulae fixes, but also more revenue to actually make it work. And this is why The Education Initiative will be going to voters next year.

Yet this year, legislators have not been ignoring the demand for restoring revenue. And in particular, Southern legislators have been noticing how Clark County funds over 80% of the state's budget, only to get about 50% back. This is why we've been hearing more calls for mining tax reform, even from some previously unlikely sources. After all, why should Las Vegas Strip casinos do nearly all the heavy lifting (as in tax collecting) while rural Northern Nevada mines pay mere pennies on the dollar for all the gold they strike?

We're just over halfway through the 77th session, so there's not much time left for legislators to agree to some dramatic overall of "GovRec" (Governor Brian Sandoval's proposed budget). Is there enough time to secure more funding equity now? Or is there at least time to lay more of a foundation for future major reforms?

There's not much time left, but there's also not much patience left.

Senate Passes SJR 15 (Again).

Last week, we saw a breakthrough. Just weeks after facing near death, SJR 15 was resurrected in an unanimous Senate Revenue & Economic Development Committee vote. Today, the resurrection continued as the full Senate voted 17-4 in favor. Only Senators Barbara Cegavske (R-Spring Valley), Pete Goicoechea (R-Eureka), Don Gustavson (R-Sparks), and James Settlemeyer (R-Minden) objected.

Otherwise, "The Senate GOP Mod Squad" joined with all the Senate Democrats to pass the bill. It now moves onto the Assembly. And as long as it passes there (again), it moves onto the 2014 general election ballot for final approval.

So why again is this important? Take a look at this again.

• Trans-national mining conglomerates took $8.76 billion in gold from Nevada in 2011, and paid a total of $104 million to the state general fund under the mining tax, an effective tax rate of 1.187%. In 2010, they mined $6.64 billion in gold, and paid $71.7 million in taxes, an effective tax rate of 1.079%. (Nevada Department of Taxation)

• Mining does pay sales tax and they pay certain property taxes —but not on the value of the mine or their mining claims. Renters, the unemployed, and minimum wage workers also pay sales and property taxes. But gold mining is different, so it should be taxed differently. Once that gold is gone, it’s gone forever. The money will be in Canada and other foreign countries, leaving Nevada with clean up costs and massive pits.

• Three of the five largest mines in Nevada are foreign-owned. The second largest mine in the world, and the most profitable mine in the world, is owned by Barrick corporation, based in Canada. This single mine will exceed $1 billion in profits in 2012, having reaped $500 million in the second quarter and $313 million in the third quarter of 2012 alone.

• Barrick pays next to nothing in taxes on the huge windfall profits from the world’s most profitable gold mine—paying a mere 1% on gross production value in taxes to Nevada’s General Fund in 2010, according to the state’s 2010-11 net proceeds of minerals tax (NPOM) bulletin.

As we've discussed before, SJR 15 takes the mining industry's current tax rate and deductions out of the Nevada Constitution so that our legislators have more authority over future mining taxes. That's all. Yet because that's SJR 15, mining industry lobbyists have fought hard to shoot it down this session (after exasperation over the status quo finally convinced most legislators to pass it the first time in 2011).

However, the story isn't over quite yet. The Assembly must now pass SJR 15 (again). Then in November 2014, voters must provide final approval. And actually, that's what likely scares the mining industry the most.

So this story may be far from over... But the mining industry already fears the ending. We'll have to see if the Assembly moves us closer to that happy ending.

What a Day This Has Been

Whoa, what a day this has been! SJR 15 not only got a(nother) hearing today, but it also passed out the Senate Revenue & Economic Development Committee unanimously! Oh yes, that's right. Ruben Kihuen (D-Las Vegas), David Parks (D-Paradise), Michael Roberson (R-Henderson), Mo Denis (D-North Las Vegas), Greg Brower (R-Reno), Debbie Smith (D-Sparks), and Ben Kieckhefer (R-Reno) all voted for SJR 15!

So how did it happen? For one, the mining representatives did a great job... Of making the case for mining tax reform!





As you can see above, Brower & Roberson were quite irritated with the "non-answer answers" coming from the mining industry's mouthpieces representatives testifying today. They wouldn't answer on how much their clients actually pay. They wouldn't answer on whether they'd sue for lower taxes if SJR 15 passes. They wouldn't even answer on what their official position is on SJR 15!

And in case that wasn't potent enough, Democratic & progressive activist Marla Turner testified today. Not only does she have her own amazing reputation, but she's also the stepdaughter of the late Assembly Member Marvin Sedway. In 1989, he railed against the many bailouts the mining industry enjoyed at the time. Marla was there to remind legislators of what actually happened in 1989... And why it matters in 2013.



In 1989, the mining industry agreed to SJR 22, the constitutional amendment that set up the current tax scheme. It did so only to fend off much more sweeping tax reform, such as a new extraction tax. While mining lobbyists do a song & dance routine on how little much their clients pay and what SJR 15 supposedly will do, they wouldn't be so fearful of SJR 15 if they didn't think it would undo the worst parts of the SJR 22 deal in 1989... The one that Steve Wynn (??!!) warned the Nevada Legislature of that year.

By the way, Roberson cited that very speech from Wynn at the hearing today.

Don't be mistaken. What happened today was truly historic. For perhaps the first time ever, the Nevada Legislature may finally stand up to the mining industry and impose fairer taxation! Democratic & Republican legislators are leading the charge on this. And Governor Sandoval is increasingly being boxed into a corner on this.

Oh, what a day this has been.