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Jun. 16, 2008
Copyright © Las Vegas Review-Journal

SCHOOL FUNDING: Nevadans say let tourists pay

Support strong for raising hotel room tax from 10 percent to 13 percent

By SEAN WHALEY
© 2008 REVIEW-JOURNAL CAPITAL BUREAU
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Graphic by Mike Johnson.

Nevada voters favor increasing the room tax, paid primarily by tourists, to increase funding to the state's public school system, a Review-Journal poll shows.

The idea of increasing the room tax from 10 percent to 13 percent to raise money for education was supported by 58 percent of those surveyed. Another 30 percent were opposed to it, and 12 percent were undecided.

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    • "Voters always like the opportunity to tax somebody else, especially tourists," said Brad Coker, managing partner of Washington, D.C.-based Mason-Dixon Polling & Research Inc., the firm that conducted the poll. "They have no problem going along for the ride on this."

    The odds of the measure passing are pretty good, given the strong level of support, he said.

    Support, or at least neutrality, from the gaming industry would make the proposal even more popular, Coker said.

    "I don't know if the casino industry will fight this tooth and nail," he said. "The room tax is something they will pass right through to their customers. Other proposals were on the table that would have damaged them a whole lot more."

    The proposal to increase the room tax for public education, now expected to be limited to hikes in Washoe and Clark counties, was announced last month as a compromise by the Nevada State Education Association and some members of the gaming industry.

    In exchange for support from some in the gaming community, most notably Wynn Resorts, Harrah's Entertainment and Station Casinos, teachers abandoned an initiative petition to raise the gaming tax instead.

    The language of the advisory ballot question, expected to be in front of voters in the November general election, is still being drafted.

    But gaming industry support is far from unanimous. The chief executives of MGM Mirage and Boyd Gaming Corp. have expressed opposition to the idea.

    The room tax increase would raise between $150 million and $185 million for the 2009-2011 budget. It would be used to offset the need for budget cuts for public education if approved by voters and then the Legislature next year.

    Coker's company surveyed 625 registered Nevada voters by telephone Monday through Wednesday, making sure the number of Republicans and Democrats surveyed reflect voter registrations.

    The results have a margin of error of plus or minus 4 percentage points.

    "I think those figures confirm what we know and have said all along, that education is a top priority of voters in Nevada," said Lynne Warne, president of the teachers association.

    "They are looking for a fix to resolve the funding crisis for K-12 education."

    Warne said the numbers show strong support for the idea, which will only grow when teachers begin to communicate with voters about the need for the increase.

    Alan Feldman, a spokesman for MGM Mirage, said he thought support would be stronger for the measure.

    "If anything, I'm surprised the opposition is so high," he said. "I almost expected more overwhelming support. It may indicate the public's belief we need to do something more broad-based."

    Feldman said the company's concern with the teacher plan is the proposed tax does not raise enough money to address key needs in education, public safety and social services.

    Looking only at the room tax is too narrow, he said.

    New tax revenue should not be earmarked to one program or area of need, either, Feldman said.

    MGM Mirage officials are meeting with business leaders, lawmakers and others to determine if another approach can be devised for the start of the legislative session in February, he said.

    One potential target is the modified business tax, as long as protections for small business can be built in, Feldman said.

    While new revenues are seen as part of the solution to the state's current economic woes, some budget cutting is also in order, he said.

    "There will have to be some belt-tightening. We can't fill the gap 100 percent."

    Contact Review-Journal Capital Bureau reporter Sean Whaley at swhaley @reviewjournal.com or 775-687-3900.

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    Scott Gregory wrote on June 19, 2008 03:27 PM: In regard to school funding: I visit Las Vegas and Mesquite, Nevada, roughly 4 times per year. If the Nevada legislature decides to raise the room rate tax, I will not stay nearly as often as I do now. As with all school funding issues, stop throwing money at whatever problems you may have and utilize the funds that you do have more efficiently. Public education is funded appropriately. The bureaucracy
    associated with educational expenditures needs to be streamlined and the money needs to be spent on the children rather than pandering to the adults involved (unions, benefits, lobbyists, illegal aliens, etc).


    jk in colorado wrote on June 16, 2008 10:58 PM: You all seem to be very critical of the illegal aliens. So am I. My grandparents came over here from Poland in 1918 on a really slow and overcrowded boat. What’s that Senator’s name, uh, Dirty Harry Reid, the Majority Leader. What is he doing about the problem? He is a disgrace. Vote him out, and while you are at it, get a Sheriff like Sheriff Joe. Problem taken care of. Funding for education, healthcare and corrections and Law Enforcement will all be reduced. THINK PEOLE OF NEVADA!!!


    wynn nighman wrote on June 16, 2008 08:44 PM: I live in Cleveland and paid $ 206 round trip airfare to Vegas in March, in April it was $ 218, but my July trip is off the wall at $ 597. I could care less about a small room tax increase.Your people need to get ready for massive layoffs,due to our governments blindness, and inability to be proactive.(Think (9-11). I LOVE Vegas and will miss my MONTHLY trips to your VERY FINE CITY for well over 20 years. See you again when this insanity is over !!! Wynnvegas@hotmail.com


    John O'Neill wrote on June 16, 2008 08:22 PM: Ye p, we need more more more cash! we are teachers and our schools need cash!
    Could be that ILLEGAL ALIENS are the cause for the increased costs associated with goverment schools.
    VOUCHERS! CHOICE! FREEDOM!
    enforce employment laws and the illegals will go away with the need for ever increasing education and welfare budgets!!!!!!!!!!!!!!!!!!!


    Shirley wrote on June 16, 2008 08:22 PM: Go ahead and tax the tourist some more, you just may kill the goose that lays the golden egg!


    Jim shoes wrote on June 16, 2008 07:42 PM: Before you start biting the hand that feeds your economy (ie: Tourist) Nevadans should start looking on how you elect and let stupidity and greed run your money into their pockets.
    Raise your room taxes and i for one will start a internet campaign against Las Vegas. Your schools, you elected, your problem. Vegas is a Demoncratic city and it shows it has no backbone in elected officials but GREED.


    Jon Fair wrote on June 16, 2008 05:52 PM: As a tourist I have been comming to Las Vegas for 20 years and stay about a month each year. We live in Virginia and usually drive out and back. It used to be a very reasonable winter vacation. Now it seems every one is trying to fleece us. Hotels, food and now taxes. This cuts subsantially in to the gaming budget, and now the high gas prices it is even worse. You better try to find a way to entice more tourists. There is a lot of gaming a lot closer and now cheaper than Las Vegas. Quit skimming the tourists.


    roger wrote on June 16, 2008 02:28 PM: Bottom line, this place is a disaster. The economy is in shambles and nobody has the appetite to pay more for anything right now. But I have to ask, how is the school system funded right now? Isn't a good part of it from property taxes? Well if that's the case you can expect the dollars coming from property taxes to decrease, along with the values of all our homes. And some money from casino revenue taxes? And we hear gaming revenues have gone down what 5 months in a row? Houses are not selling so where are all the 5000 people moving here every month living? I'll tell you where, rental units. Do those residents contribute to the school system budget? Speaking of property values, anyone see the CNNMoney report where someone is predicting property values in this city will drop about 50%? Nice.


    dixiem wrote on June 16, 2008 11:53 AM: hmmmm - let's see - the casino industry is providing employment to the ILLEGAL immigrants who are dumping their ILLEGAL pablos and marias into a school district that doesn't even have enough funding to provide a decent education for the kids of U.S. citizens. So I would have to say - YES - the casino industry should be paying more taxes to fund the educations of their ILLEGAL immigrant employee's anchor babies. Better yet - the federal govt should be Raiding AND Fining the casinos that are providing employment to these ILLEGAL immigrants, DEPORT the ILLEGALS back to their country of origin (with their anchor babies), and FUND THE SCHOOL DISTRICT with the fines collected.
    That alone should substantially reduce the $900+ million state deficit funds.


    Jack wrote on June 16, 2008 10:58 AM: I disagree with raising any tax any more to pay for a failed school system. Already I spend several hours a week and thousands of dollars per year of my money to educate my children. This is due to the complete incompetance of our school system here.
    Our students test scores and our standing in nationwide tests of the education system show that despite several bond issues over the past 15 years, we are getting garbage for our money. I do not pay an employee more for poor performance, I pay less or get rid of them. No more money for these thieves from any source.


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