With the big work done, Legislature expected to adjourn Monday

CARSON CITY — With a critical Assembly vote Sunday approving Gov. Brian Sandoval’s controversial new gross receipts tax, all of the moving pieces were falling into place to ensure that the 2015 legislative session will adjourn by midnight today.

The new levy on the state’s largest businesses with revenue of more than $4 million a year will raise much of the money needed to fund Sandoval’s ambitious education reform package that was also seeing favorable votes on Sunday. When combined with other elements of his tax plan, it will raise an estimated $255 million a year.

The new tax was supported by the gaming and mining industries but opposed by retailers and the trucking industry.

With the approval of the new “commerce” tax, Sandoval has accomplished what other governors tried to do and failed, most notably Kenny Guinn in 2003. Critics said that with the new formula in place, it will be easy for future legislatures to expand the tax to cover more businesses.

Efforts by a GOP anti-tax block in the Assembly to reject Sandoval’s tax plan failed when the measure received 30 votes, two more than the two-thirds needed for approval. There is no question but that the Senate will support the plan as well.

It was becoming clear that Sandoval will end up with virtually every major objective he outlined in his State of the State address in January thanks to the Republican-controlled Legislature, including two controversial school choice measures called vouchers by critics.

As a result, Sandoval’s $7.4 billion two-year general fund budget, along with a big increase in public education funding, is on its way to final approval. If given a final OK, the state general fund would represent a 13 percent increase over the current $6.5 billion spending plan.

Total state funding for public education would climb by about $400 million to $2.85 billion, a nearly 16 percent increase over the current budget.

Sandoval’s education plan includes expanding all-day kindergarten to all schools at a total cost for the program of $140 million over two years, $100 million to help English language learners, and accountability measures such as Read by 3, requiring students to master reading by the third grade or be held back. Failing schools could also be taken over by charter agencies through an Achievement School District.

‘SYMBOL’ OF ACCOMPLISHMENTS

Senate Finance Chairman Ben Kieckhefer, R-Reno, said the education funding bill, which passed the Senate on Sunday, is a symbol of what lawmakers accomplished in the session.

The main budget bill won’t be voted on until today after sitting for 24 hours for review.

While Sandoval might be enjoying the broad support for his proposals from the Legislature, others will also benefit from the Legislature’s work this session.

It won’t be too many months before ride-hailing companies such as Uber and Lyft will be able to operate in Nevada. The state budget also includes 75 new positions for the DMV to fully staff its crowded offices to reduce long lines in Las Vegas.

The University of Nevada, Las Vegas, will get $29 million to establish a new medical school with the first class starting in the fall of 2017. The university also won approval to spend nearly $50 million on a new hotel college building.

State employees will get the first cost-of-living raises they have seen in six years. While modest, the 1 percent raise on July 1 and another 2 percent on July 1, 2016, will help offset increased contributions workers will have to make to their retirement plan.

Kevin Ranft, a lobbyist for AFSCME Local 4041, called the raises a long time coming, and he thanked lawmakers and Sandoval for including them in the final budget.

“Thank you for hearing the voices of the state employees,” he said.

Clark County’s crowded schools will also benefit from the session. A bill passed early on allowing the school district to roll over bonding authority has allowed construction to start on seven new elementary schools that are expected to be ready by the fall of 2017. More schools will be built in coming years as a result of the new law.

NOT MUCH LEFT TO DO TODAY

With most major issues either resolved or on their way to final approval, there isn’t much left on the Legislature’s plate to finish on Day 120.

Supporters of a bill requiring parental notification for a minor to have an abortion kept pushing for a vote on Assembly Bill 405, but none appeared in the offing. The same was true for Assembly Bill 487, a “campus carry” gun bill.

While it was dubbed “the session of the gun” because of the many Second Amendment-related measures, the 2015 session might more accurately be called the session of taxes.

In addition to Sandoval’s new commerce tax, lawmakers were in the process of revamping the state Live Entertainment Tax to cover more events at a 9 percent rate, including the Electric Daisy Carnival, NASCAR and Burning Man. The effect of the changes on total revenue from the tax is not yet clear.

The bills enabling Uber to operate also include a 3 percent tax on rides, including taxis, that could bring in $70 million over two years.

The state’s “sunset taxes” that will bring in about $400 million in general fund revenue with a package of continuing levies were also approved and made permanent. They were known as sunset taxes because they were set to expire June 30. The package also includes a whopping 125 percent increase in the cigarette tax, from 80 cents a pack to $1.80 that will bring in an additional $200 million.

Total new and continuing general fund taxes total about $1.1 billion to the general fund and more for public education.

Fears that the new GOP majority in the Assembly could lead to a stalemate over taxes, resulting in a repeat of the 2003 session when multiple special sessions were needed to finalize the budget, did not materialize.

But the 25-member GOP caucus, divided into two camps on taxes, did generate some memorable theater over the past four months, most notably when Assemblywoman Michele Fiore, R-Las Vegas, told colleague Chris Edwards, also R-Las Vegas, to “sit your ass down” during debate on a bill.

Contact Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Follow @seanw801 on Twitter.