There was big news coming out of Carson City this week. On Wednesday, the Economic Forum, which forecasts how much tax revenue lawmakers will have for the budget, convened and announced they will have just slightly more money than their last report in December.
So what does that mean?
It means Governor Sisolak doesn’t have enough money to fulfill his promises.
According to the Guinn Center for Policy Priorities, Sisolak is short $107.5 million if he is going to pay for his promised 3 percent cost of living pay increase for teachers and a 2 percent merit pay raise.
With teachers threatening to go on an illegal strike if they don’t get what they want, we are on the brink of a crisis.
If he is going to pay for his promises, Sisolak is faced with either cutting spending elsewhere in the budget, raising taxes, or raiding the rainy day fund.
Considering how much he fears letting down his supports in the teachers union, it seems far-fetched to believe he will buck other special interest friends.
In addition to his promises on spending, he also promised he wouldn’t raise taxes. Would he be willing to renege on his vow to the taxpayers to keep his word to financial backers of his campaign?
If he is determined to keep his promises, that leaves the rainy day fund.
We all remember what happened when the Great Recession wrecked Nevada. There was nothing in the rainy day fund, which led to draconian cuts. Do we want to risk that again?
Senate Minority Leader James Settelmeyer doesn’t think so. On the same day as the Economic Forum released their report, Settelmeyer dropped a bill to protect the rainy day fund.
If passed, Settelmeyer’s bill would only allow funds to be taken out of the rainy day fund if the account has more than 6.25 percent of allocated spending in the state budget.
It’s a great concept, but it will take some work to even get it a hearing. Democrats are in a bind, and raiding our reserves may be their only way out of it.
That’s why we need to get on the phone and demand legislators take this bill up. We’ve seen what can happen when we apply pressure to legislators—just look at the Sanctuary State bill.
We can make a difference.
Thank a Republican…
As part of the tax increase package passed in 2015, the payroll tax must be automatically decreased if revenue from that tax, Commerce Tax, and an excise tax on banks exceeds projections by 4 percent.
That happened last October, so the payroll tax is supposed to reduce.
This was a promise lawmakers in Carson City made to Nevadans, and they owe it to the taxpayers to see to it that the reduction happens.
But with Sisolak and Democrats scrambling to find money to pay off the promises they made to their friends, they are determined to stop the reduction.
Every single Republican Senator has indicated they will not vote to kill the sunset of the tax.
This is huge.
Right now legislative attorneys are determining whether the 2/3 majority needed for tax increases applies to sunsets. While you would think an increase on what the law states the tax should be automatically triggers the 2/3 rule, there is a possibility the lawyers will side with the Democrats.
But if they do say 2/3 of the Senate must vote to stop the sunset, then Democrats would need just one Republican to vote with them.
See? I told you this was huge.
Please take a minute and call or email Republican Senators and thank them for holding strong on the promises lawmakers made.
Keep Up the Pressure…
Rumors are going wild in Carson that Democrats don’t have the votes to change how we elect the President.
We’ve been beating the drum relentlessly—some say it’s been overkill—to raise awareness of the bill in the Legislature that would allocate our electoral votes to the winner of the national popular vote.
Our pressure is getting to Carson City Democrats, so let’s keep our foot on the gas.
Call or email Senators and urge them to vote NO on A.B. 186.
There is less than a month left in session and we have plenty of opportunities to leave our mark.
We’ve got to kill A.B. 186.
We’ve got to stop the greed driving some to irresponsibly raid our rainy day fund.
And we’ve got to hold legislators to their promises and allow the payroll tax to reduce as required by law.
If you have any questions or concerns, please do not hesitate to reach out.
Email me at firstname.lastname@example.org, or call me at 515-512-0858 and I would be more than happy to help you out.
And as always, if there are any other urgent matters before my next update, I will be sure to let you know. In the meantime, please forward this email to your fellow Nevada Republicans. It is crucial we keep people updated on what is going on in Carson City if we are going to ensure Republican voices are heard during the legislative session.
Thanks for all you do,
Josh SkaggsLegislative Affairs Director, Nevada Republican Party