After Democrat meltdown, dealmaking resumes in Nevada legislature

CARSON CITY – Less than 24 hours after his Democratic caucus tearfully and bitterly gave up on plans to create two new taxes to fund state government, Assembly Speaker John Oceguera, D-Las Vegas, was working the halls of the Legislature to cut a budget deal with Republicans.

Oceguera met Wednesday morning with Sen. Joe Hardy, R-Boulder City, in an effort to find a way "we are going to get out of here," according to Hardy.

Oceguera is looking for Republicans who would agree to delay the expiration date, or sunset, on about $626 million in existing taxes in order to avoid cuts to education and social programs Democrats don’t want to cut.

The problem is, so far, Republicans are either refusing to bargain or offering terms Democrats are unwilling to meet.

Hardy said Oceguera indicated he can find enough Republican takers in the Assembly to agree to the sunset taxes in exchange for long-term spending reforms.

But even if Oceguera can swing a deal, Republicans in the senate have steadfastly refused to trade reforms for taxes of any kind.

"He seems to think they are capable of getting reforms out of their house," Hardy said. "I’m not as optimistic as he is about that."

Senate Republicans say the $6.1 billion budget from Republican Gov. Brian Sandoval is good enough for them.

Oceguera’s latest effort is focused on finding Republicans who don’t like the borrowing and other one-time revenue grabs Sandoval included.

Democrats are especially opposed to Sandoval’s plan to get about $190 million by borrowing against future insurance premium taxes and shifting approximately $250 million from school construction bond reserves to education operation accounts.

"I think there are options to figure out how we get out of here," Oceguera said. "We start with the common goals."

Hardy and other Republicans have said they, too, aren’t thrilled with borrowing money or moving cash from reserves to operations, leaving Democrats some room to offer alternatives.

"If we don’t have to borrow money I would prefer not to borrow money," Hardy said.

Oceguera’s preference is to get some or all of the sunset taxes extended, as Democrats are already upset about giving up on new taxes and not in the mood for caving in completely to Sandoval.

"I think the sunsets are absolutely a part of getting out of this out of here," Oceguera said.

But with just a few days to left to strike a deal and get it to the governor in time to override an expected veto before the 1 a.m., June 7 conclusion of the session, there’s not much time for negotiations.

And even though Hardy and other Republicans dislike parts of Sandoval’s budget, they dislike taxes even more. Democrats would need two Assembly and three Senate Republicans to defect from Sandoval and join the Democrats. So far they don’t have the votes.

"I don’t know how we are closing this budget down without doing (Sandoval’s budget)," Hardy said.