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ERIN NEFF: Higher taxes the only real answer

Several events Tuesday amplified the state's budget issues so well, it's hard to imagine anyone still holds the belief that growth pays for itself and we can cut our way out of deficits.

The Las Vegas Valley Water District argued it needed to raise rates to help Nevadans "conserve" water. Watching water bills jump drastically could lead residents to use less water.


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  • But district General Manager Richard Wimmer made it clear during a meeting of the board of directors Tuesday that the increased revenue generated by the higher rates (expected to be about $65 million) won't be used for anything specific.

    Valley water boss Pat Mulroy then deflected a question about the planned rural pipeline, saying the rate money can't be used for capital projects.

    At some point, someone's going to pay for the pipeline -- the projected cost will be hitting the Bs (that would be billions) of the state's transportation shortfall.

    Assuming the district shoves half of the new revenue into reserves, that's money available to help leverage bonds to tap into White Pine County's water and pump it here.

    The average water bill increase, effective right around tax time, will be 23 percent. A citizen's committee convened to study the pricing suggested the rates be raised three times to avoid a single whopping increase.

    Some in the "environmental community," as County Commission Chairman Rory Reid labeled them, suggested rates go even higher. If a 23 percent increase is a carrot for conservation, whatever would constitute the stick?

    This rate increase wasn't couched in terms of raising revenue, but rather as a way to spur people to use less water. Just imagine the bill when that revenue actually does become necessary.

    Elsewhere Tuesday, state lawmakers met to again consider how to pay for the growing transportation needs of the north and south. The deficit between projected revenues and the amount needed projects will cost to build now stands at an impressive $6 billion.

    State Transportation Director Susan Martinovich told an interim legislative panel Tuesday that lawmakers must find $450 million in each of the next eight years to pay for bridges, road widening and alternative routes.

    That's $450 million the 2009 Legislature won't be able to cobble together with existing funds. The governor will use rainy-day funds to offset the current budget shortfall, and there's no end in sight to the downturn in sales tax receipts.

    So as much as no one likes the big "T" word, there's no real alternative any more if we hope to pull together that much cash each year and do things such as widen Interstate 15, the lifeline of our tourist economy.

    Yet lawmakers sit in fear of the Promise Keeping governor who won't permit taxes on gas, truck hauling miles or even toll roads. Transportation consultants came up with several ways to address a $3.8 billion deficit back in 2005. But the no-taxing governor and a feckless Legislature did the barest minimum to address the issue. Now the transportation deficit is a legitimate beast which will only keep growing.

    Here in Clark County, the road picture is no better.

    Sales tax revenue is down so sharply that the Regional Transportation Commission doesn't have enough money to fund interchanges and bridges needed to complete the Las Vegas Beltway. The price tag is a mere $1.4 billion. Chump change compared with the state deficit, but damning to the Clark County coffers, which have been hit not just by the dip in tax revenue, but also by the 2007 Legislature's "solution" to the green tax fiasco and, ironically, to the effort by lawmakers to put down $1 billion on the state's road deficit.

    The local transportation solution appears to be a long-term bond in an economy where Warren Buffett needs to insure the bond insurers.

    No matter where you look, the state's infrastructure needs are crippling local and state governments. And that doesn't even include education, health care or social services, which all continue to be ranked so low that Nevada can keep its derisive label as the Mississippi of the West.

    Lawmakers of both parties insisted taxes aren't possible in this economic climate and with this governor.

    Yet there was state Sen. Bob Beers, a Republican up for re-election this year, telling the Review-Journal he's the one to represent Las Vegas in Carson City because "a small group does want to kick Nevada families when they're down by raising taxes."

    Could he mean Democrats? Or Republican state Sen. Dennis Nolan, who's calling for a bipartisan tax plan to solve the transportation mess? Surely he can't mean his Democratic opponent, Allison Copening, a PR official with the Las Vegas Springs Preserve, who announced she'll run against Beers this year.

    It's much easier to rail against taxes than to provide solutions.

    Contact Erin Neff at (702) 387-2906, or by e-mail at eneff@reviewjournal.com.

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    igspot wrote on February 22, 2008 09:04 AM: Erin says, "it's much easier to rail against taxes than to provide solutions". How completely idiotic. How about "it's much easier to raise taxes then to provide solutions"? or "it's much easier to raise taxes than to cut spending" or "it's much easier to raise taxes than have a brain"? Actually, the real question the Erin's and her ilk cannot even ask is.... "has all this tax raising we've been doing ever worked out or does government have an insatiable appetite for money, regardless of good times or bad?"


    helen weils wrote on February 22, 2008 06:00 AM: Erin Neff is a dork.


    douglas wrote on February 21, 2008 09:39 PM: if you lads think that developers dodge financial responsibility, i shoulda' saved my last email exchange with the sun editor. i pointed out that casinos should ante-up for exactly those infrastructures that directly benefit their *for profit* businesses. that doesn't include funds for some/any union, teachers' or otherwise. but it does mean extending, upgrading highways that ease access to their properties. that could include the widening of 15 down to the state line. and it for sure should include some significant participation in the new ramps adjacent to and serving for example, the south point casino.

    the response from the editor/part owner of a casino was self-serving, to be polite.

    as to chastising the r-j for providing the perch for this columnist, could be a concession to some "fairness doctrine". an under-informed, token spokesperson might satisfy eeoc regs. otoh an informed, talented leftist might better broadcast the marxist party line.


    ralph wrote on February 21, 2008 07:11 PM: Erin, please read the comments below. How much does a state tax increase effect your personal world? Not much I would think, so go ahead and send your cash to them voluntarily if you so wish. The rest of us real taxpayers do not want anymore legalized theft then we already have.

    Additionally Erin, your lack rudimentary economic knowledge is breathtaking. If water rates would increase dramatically, consumption could go down? Of course it would... you get a F for using "could" instead of "would". Any graduate of econ 101 would know that. Here's my advice for the water weenies. Instead of having an army of public employees running around looking for water waste, writing silly notices, running ads on TV, and essentially wasting all your time and money with dumb-A progams, simply raise rates. When my bill gets too high, I'll take my own lawn out, water less, drain my pool, or whatever it takes. So will everyone else. Case closed. It's not rocket science and rasing taxes is NOt.. I repeat NOt.NOt..NOt..NOt..Oh, did I say NOt...the answer. So don't ask anymore.


    Publius wrote on February 21, 2008 02:43 PM: The reason that growth is not paying for itself is easy: It's because those that facilitate the growth- County Commission, Cities of Henderson, Las Vegas, NLV, etc.- ARE NOT DEMANDING THAT GROWTH PAY FOR ITSELF!!

    Those that want to grow (developers, etc.) should be held responsible for funding the additional impacts that their growth will have in the valley. But that won't happen as long as we elect people to the offices that maintain all discretion with regards to growth, yet also reap the (cash) rewards of said growth. Guess what? When growth pays its fair share, there's no money in it for the politicrats. Nor will the profit margin be so large in the developers' bank accounts.

    Responsible growth IS growth that pays for itself. I ask any registered voter here, do we have responsible growth?


    Common Sense wrote on February 21, 2008 02:17 PM: If you financed your business the way the gov't finances the water district, you'd NEVER go broke.

    You'd just force your customers to give you more money.


    Businessman wrote on February 21, 2008 02:11 PM: If I ran my business the way Pat Mulroy runs the water district I would have been way past broke a long time ago.


    howard wrote on February 21, 2008 01:09 PM: Why doesn't the RJ just use this headline for everything thing she writes? Every column is either lets raise taxes or democrats good, republicans evil. It's a miracle she keeps her job just repeating the same garbage over and over.


    oldlawdawgb wrote on February 21, 2008 11:55 AM: So what, exactly, is your point, Erin? To say "I told you so" enough times that people will actually find your rants relevant? Your economic thinking is so two dimensional that it gives me a head ache just to read you anymore, but this boarders on pure vitriol -- unless you are calling for tax increases before the need and degree thereof are even defined. Is it that you FAVOR tax increases, Erin, or that you wish to get ahead of a fairly obvious issue in order to scream to us how "right" you have been all along? You are shrill and obnoxious, Erin -- a columnist who beats up just to beat up since the situation Gibbons faces is 180 degrees from what it was when he made his no tax pledge, but who offers no meaningful alternatives of her own since being "right" and saying "I told you so" is all you care about when, in fact, nobody has really been arguing with you since your attacks have all been based upon changed circumstances. What a completely shallow sense of victory you have, Erin, but I suppose you feel a supreme need to finally be "right" about something.


    Rick Wheeler wrote on February 21, 2008 08:55 AM: I see that OUR elected officials, that are the board members of the LVVWD, want to reduce our consumption of water, thus eroding our way of life (especially for our long time residents with nice big lawns), and for what end? So that more people can move here. Well, really, it is so more $$$$ keeps coming into politicians' coffers and into the pockets of their buddies in the development business.

    Yep, our own elected officials, both republican and democrats, are taking water from Peter to give to Paul.

    Stop reelecting these people! BTW, Nevada could save millions of dollars by not giving tax money to non-profit groups (like Beers, -"moderate financial conservative"- voted to do in 2007).

    Erin, the people wanted Gibbons and no new taxes! Get over it. If you don't like it here, move.

    I am.


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