How much money is enough for state?

One year ago today, Nevada’s voters elected a new chief executive to lead our state.

As somebody who participated in that race, I remember it well. Throughout the campaign, voters were subjected to a lot of promises and platitudes, from all sides, on all issues, from all five major candidates. But one candidate won that race, and he won primarily on a single promise, covering a single issue.

Gov. Jim Gibbons pledged to Nevada’s voters — Republicans, Democrats and independents — that he would not raise our taxes. Ultimately, he earned enough votes to win the campaign.

Just weeks into office, at the start of the 2007 legislative session, many lawmakers complained about our state’s fiscal situation. Never mind that we started this year’s legislative session with more than $300 million in surplus revenues, following a 2005 session where we had a surplus of more than $600 million. To some, it wasn’t enough. Will it ever be?

Using data from the National Governor’s Association, Americans for Tax Reform published a study earlier this year on which states had raised or lowered taxes the most from 2002 through 2007. Only four states had raised taxes by more than $1,000 per person during this period. Nevada was the second highest, at $1,110.32.

Still, some say that government simply isn’t spending enough, so we must tax people more. In fact, some of the principals at Wednesday’s budget meeting in Carson City will advocate the same thing. It’s no wonder taxpayers think government is so far out of touch.

Across America, other state governments are committing the ultimate budget blunder. As governments find themselves unable to stop wanting to spend more than they collect, no matter how much they collect, they are raising taxes on an already over-taxed, over-regulated citizenry. Nevada has benefited tremendously from the bad policies of other state governments. See California. Our economic growth, strength and resiliency hasn’t happened by accident. Nevadans are choosing to make their homes here because, unlike other states, we promise low and stable taxes and a more sensible regulatory environment.

Are we prepared to turn our backs on the very model that has worked so well for so long?

Some who will attend Wednesday’s meeting have argued that the time has come again to raise taxes. As the vice chairman of the Senate Finance Committee, I strongly disagree.

While it is true that tax revenues are coming in slightly below expectations, it is also true that demand for government services is coming in below expectations. For example, population growth, school head counts and university enrollments are all coming in below expectations as well.

Today, Nevadans are facing the highest unemployment rate since the months following the terrorist attacks of 9/11. State government spending is already swollen from just five years ago. Home resales are down by a third from just one year ago. We are also entering the holiday season — a time when economists and investors carefully gauge consumer confidence. With all of the media focusing on Nevada’s budget situation, are we prepared to add another financial burden to the dinner-table discussions of Nevada taxpayers by threatening higher taxes?

As a participant in Wednesday’s meeting, I will be well-prepared to argue the contrary.

The doctor’s credo is to do no harm. I would recommend that Nevada’s elected officials also adopt this credo as we enter these important budgetary discussions.

Bob Beers is a Republican state senator representing Las Vegas’ District 6.