Elizabeth Crum

Fact:  Democrats control the Nevada State Senate, 12-9.

Fact:  Due to the 2/3 super-majority rule, Nevada Democrats cannot pass a tax increase without the votes of (at least) two Republican senators.

Fact:  No Republican senator would dare to vote for a tax hike without the blessing of Senate Minority Leader Bill Raggio (R-Reno).

Conclusion:  Whether or not Nevada’s citizens, businesses and/or tourists get socked with a huge new tax hike in 2009 pretty much depends on Sen. Bill Raggio.

Action Item:  Call, fax, or email Sen. Raggio and respectfully urge him to oppose tax increases in these, the final days of the 2009 legislative session.

Toll-free Phone: 1-800-992-0973  or  1-800-995-9080
Fax: 1-775-786-1177
Email: wraggio@sen.state.nv.us

Action Item 2:  Forward this post to your friends!

Steve Wynn on Jon Ralston’s Face to Face:  “Anybody who raises taxes now is psychotic.”

It is now the eve of the 75th convening of the Nevada Legislature.  But don’t get too excited, kids!  Tomorrow will be a day of glad-handing and back-slapping and silly grinning.

Anyone waiting for actual state business to be done will have to wait (at least) until Tuesday.  Longer, probably, since the the Dems still have not put forth a comprehensive budget proposal, and it’s going to be more than a 5 minute job to solve our $600 million budget shortfall.

Even then, with the Dem super-majority in the Assembly, the best that minority leader Heidi Gansert will be able to do is convince her team that supporting tax-and-spend policies is bad for their electoral futures.  And if they don’t believe her and choose to join the Dems in a “bi-partisan” action, I’m guessing it’ll be D-Day for them in 2010.

Update: Steve Sebellius has the Democrat “plan” – all two vague-sounding, double-spaced, extra large font pages of it – here.

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Nevada’s most incorrigible tax hater, Chuck Muth, penned a pretty good one today.  Read it for yourself, but here’s a sum-up with a little E!! on the side:

The Silver State’s usual tax-and-spend suspects are crying a river over what amounts to a 10% budget cut (not 15%, not 22%, and not 34%, as has been reported by various hysterical persons who shall go unnamed).

Yes indeedy, 10% is the official figure that Andrew Clinger, the state’s official Budget Director, is officially using in his official correspondence with people.  According to Clinger, Gov. Gibbons’ proposed general fund budget this year “is $632.9 million smaller than last biennium,” a reduction of 9.3 percent. 

So why all the discrepancies, disparities, and dispepsia over huge budget cuts?  Let’s have a little history (and MATH) lesson and see:

2003:  The Legislature increased taxes by more than 3/4 of a billion dollars.  And there were no spending cuts.  Then-REPRESENTATIVE Jim Gibbons criticized then-Governor Kenny Guinn for not cutting 3/4 of a billion dollars from the budget rather than raising taxes. 

2005:  Wonder of wonders, Nevada had a budget surplus of about 3/4 of a billion dollars.  Gov. Guinn put some of the surplus into the Rainy Day Fund and rebated $300 million back to the taxpayers.  The general fund budget was around $6 billion.

2007:  Gov. Guinn is out; Gov. Gibbons is IN.  Gibbons SHOULD HAVE proposed a budget which included the 3/4 of a billion in cuts he’d suggested to Guinn back in 2003, which is to say he should have proposed a budget of around $5.5 billion (allowing for inflation and giving a little leeway and such).  But instead Gibbons suffered from sudden budget amnesia (SBA) and proposed about a billion dollars MORE in state spending.  So the Gibbons budget was nearly $7 billion.

2008:  Astonishingly enough, The Economic Forum projects actual revenues coming into the state coffers at around $5.5 billion.

SO, here we are, 2009:  Looking at the insufficient funds left over from 2007′s budget and faced with having to roll back spending to 2005 levels based on current state revenues.

AND the big-government gurus want the 2009 Legislature to spend NOT ONLY the $7 billion the government already can’t afford, but ANOTHER $1 billion on top of that!   Yes, it’s true:  the spendy spenders are demanding $8 billion in government spending while the state is only taking in $5.5 billion.

AND – here’s the big finish, folks! – the Spenders are calling any talk like the Talk I just talked (i.e. only spending what we are actually taking in), an “irresponsible $2.5 BILLION BUDGET CUT.”

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Any questions?!

Here’s another tired story about how the most helpless people in our society – our disabled, our children, and our disabled children - will be harmed if the Nevada legislature makes any more cuts to the state budget.

(yawn)

The thing about these kinds of stories is that most people don’t dare criticize them because then you’re called a supporter of “unconscionable” acts and a heartless hating hater of autistic kids.

Unless you’re me, and then you dare.

As a general rule, large government bureaucracies run so inefficiently and are guilty of so much over-spending and waste that any run-of-the-mill efficiency auditor could find ways to shave 5 to 10% without much of an impact on anyone.

If you doubt me, check out some of the information on the new Transparent Nevada website.

Like the sum total of the astronomical above-market salaries, overtime, and benfits packages being paid to some state employees.  A few reasonable adjustments and everyone could keep their jobs while the state saves about $100 million.

Or the astoundingly large vendor contracts that exist just here in Clark County.  You cannot convince me that out of the six $100,000,000 – ONE HUNDRED MILLION DOLLAR – contracts, there are no reasonable cost reductions that could be made while still maintaining adequate service levels.

It’s all about identifying and reducing inefficiency and waste - not cheating the poor kids out of their speech therapy classes.

The LVSun reports that Assembly Speaker Barbara Buckley wants to put two cents from every dollar of state revenue into the Nevada’s rainy day fund. Says the Sun:

Buckley said Wednesday that in the upcoming legislative session, she will propose a “forced savings account” into which 2 cents of every “new dollar” of state revenue would be deposited. New dollars would be any money that comes in above existing revenue levels.

Taking the pennies from new dollars would prevent this system from siphoning funding from existing programs, she said.

Having talked with state Sen. Bill Raggio, R-Reno, and Democrat Steve Horsford, the state Senate’s new majority leader, among others, Buckley said she has not “found one person who does not think it’s a good idea.”

It’s also been reported that (1) Democratic Sen. Bob Coffin has suggested a “temporary” tax that would cease when certain savings goals are met, and (2) our “no new taxes” governor Jim Gibbons has said he might agree to approve a temporary new or increased tax if it has an expiration date.

If Coffin’s plan flies and Gibbons signs off, I guess we’ll have to call him the ”no new taxes unless you pinky swear they won’t last forever” governor.

Whoa, I almost missed this part of the story!  Check it out:

Bob Loux, Grand Propaganda Poobah for Nevada’s Nuclear Waste Policy Office, didn’t just redistribute funds in the form of unauthorized 2008 raises.  Apparently he’s been over-paying himself and his staff for years.

According to figures released by the governor’s office yesterday, Loux over-paid himself and his staff (i.e. exceeded his budgeted salary amount) for fiscal year 2007 by 6.69 percent.  This year, he exceeded his budget by 12.06 percent. And for next year, he was planning to exceed by 18.99 percent.

As for his personal salary, Loux was budgeted to be paid $114,088 this year but jacked up his salary more than 27 percent to $145,718.  He was budgeted to be paid $114,088 again next year (due to the statewide salary freeze) but set himself up to rake in $151,542 instead. 

Here’s the kicker:  These raises look to be about more than just the immediate extra cash.  Turns out Loux is eligible to retire on October 8, 2008.  And his already generous retirement package will/would reported be based on his ending salaries for his final three years of service. So it sure appears as if Loux was jacking up his salary in an effort to rip off taxpayers for higher retirement benefit over the next twenty or thirty years.

Assemblyman Morse Arberry was right on Tuesday.  Bob Loux shouldn’t just be fired; he ought to be prosecuted and thrown in jail.  AND stripped of his inflated retirement benefit.

(Hat Tip to Chuck Muth’s News and Views.)

Chuck Muth of Citizen Outreach has filed a complaint with the District Court of Carson City asking for the removal of Bob Loux – executive director for the Nuclear Waste Project Office of the Agency for Nuclear Projects for the State of Nevada – from office for malfeasance as provided for in NRS 283.440.

According to NRS 283.440, “Any person now holding…any office in this State…who is guilty of any malpractice or malfeasance in office, may be removed therefrom as hereinafter prescribed in this section.” 

According to a September 9, 2008, story by Cy Ryan of the Las Vegas Sun, Mr. Loux gave “himself and his staff an unauthorized 16 percent pay raise,” well above levels set by the Legislature for his office. 

On September 10, 2008, Brendan Riley of the Associated Press reported that Mr. Loux “apologized to the lawmakers’ Interim Finance Committee” (IFC) at the hearing on September 9, 2008, “for giving himself and other agency staffers unauthorized pay increases of up to 16 percent.” 

According to the AP report, Mr. Loux’s agency falls under the governor’s office, but Mr. Loux ”didn’t report the pay increases to the governor and instead signed the paperwork needed to authorize the higher pay.”

The raises came to light at the IFC meeting because Mr. Loux had overspent his budget – which in itself is malfeasance in office per NRS 353.260 (copy attached).

According to the statute, “It is unlawful for any state officer, commissioner, head of any state department or other employee, whether elected or appointed, to expend more money than the sum specifically appropriated by law for any such office, commission or department.”

Mr. Loux admitted to the IFC that he both overspent his budget and personally approved the unauthorized pay increases. “I take full responsibility for all of these errors,” Mr. Loux said.  “They were done by me.”

In an official letter to Mr. Bob Loux calling for his resignation, Nevada Gov. Jim Gibbons noted that a review by the Budget Office discovered that “there has been a history of salaries in (Mr. Loux’s) office paid well over the amounts budgeted” and that “increases have been made without my approval and in violation of NRS 223.085.”

According to a report by Ed Vogel in the September 11, 2008, edition of the Las Vegas Review-Journal, Mr. Loux’s “salary manipulation” resulted in Mr. Loux receiving a salary of $151,542 per year – well in excess of his authorized, approved and budgeted salary of $114,088.

In addition, the Budget Office review referenced by Gov. Gibbons shows that Mr. Loux’s willful and unauthorized actions resulted in salary increases for every member of his staff in excess of 27 percent higher than budgeted for Fiscal Year 2008, and in excess of 32 percent higher than budgeted for Fiscal Year 2009.  In one case, one employee was scheduled by Mr. Loux to receive a salary increase next year which would have been more than 50 percent higher than budgeted.

According to Mr. Vogel’s story today, Mr. Loux has rejected Gov. Gibbons’ request for his resignation, saying “I am not going away.”

We’ll soon see!!