Nevada lawmakers brace for in-house sequester
Along with having to explain deep cuts in federal services to their constituents, Nevada lawmakers are bracing for a hit in their own operations if the automatic budget sequester is not averted by the end of the week.
While the exact amounts remain uncertain, the House Administration Committee in December advised members to expect effective cuts of at least 11 percent through September. Now two months later, that figure could be higher.
Office allowances this year for House members from Nevada range from $1.3 million to $1.4 million, meaning cuts could be from $145,000 upwards from funds not already spent.
Lawmakers and staffers would not identify specific cuts they are pondering, but they are believed to include reductions in office mailings, staff travel and training.
Untouchable: anything affecting casework.
To be avoided: staff furloughs.
Piecing an operation from scratch in a new district, freshman Rep. Steven Horsford planned for the sequester when he took office in January.
Horsford, D-Nev., “was able to plan for the worst-case scenario when establishing a base budget so there won’t be pay cuts or layoffs because we’re currently under budget,” spokesman Tim Hogan said.
Likewise, Democratic Rep. Dina Titus said, “From the beginning, I knew the office could be faced with budget cuts from the sequester and planned conservatively with these potential cuts in mind. My goal is not to furlough any of my staff.
“I have carefully gone through my office budget cutting certain expenses in order to maintain a focus on our top priority, constituent service.”
Uncertain how much will need to be cut, Rep. Joe Heck, R-Nev., had not yet put together a specific response, spokesman Greg Lemon said. Heck would “certainly look to avoid staff furloughs,” Lemon said.
Senate cuts likewise are uncertain, with rumors they could range from 5 percent to 15 percent. Sens. Dean Heller and Harry Reid are given $3 million apiece to pay staffs and run their offices in Washington and Nevada.
Reid, the Senate majority leader, has access to an additional $2.6 million to operate his leadership office that included a payroll of 26 as of October, according to Senate records.
Additionally, Reid and Sen. Mitch McConnell, the Republican leader from Kentucky, pay their chiefs of staff and 18 other senior advisers out of a $4 million shared consultants account.
Also, Reid last year shared a $53,900 expense allowance with eight other leaders and Vice President Joe Biden, who also serves as a Senate officer.
A spokeswoman for Reid, D-Nev., offered no information on what cuts he might be contemplating.
“As for contingency plans we are always watching the budget and looking for ways to save and tighten without affecting the work on behalf of constituents,” Kristen Orthman said.
A spokeswoman for Heller, R-Nev., said his staff will be untouched by the sequester and constituent services will be unaffected.
If the purpose of the sequester was to inflict pain, it’s unclear how much the Nevada representatives might feel in the end. Congressional pay, which is $193,400 for Reid and $174,000 apiece for Heller and the House members, is not affected by the sequester.
Plus, all the incumbents were under budget last year and returned office money to the Treasury.
Heller’s surplus was $802,313.
Reid returned $307,943 from his personal office and $156,006 from his leadership operation.
Out of his $1.4 million office fund last year, Rep. Mark Amodei, R-Nev., said he returned $155,000 to the Treasury. He said his goal “is to provide the greatest possible service to constituents at the lowest possible cost to taxpayers.”
— Steve Tetreault
TALKING ABOUT TAXES
In the middle of KVEG’s Hot 97.5 playlist — which ranges from R&B diva Alicia Keys’ “Girl on Fire” to 50 Cent’s rap hit “I Get Money” — an ad recently popped up talking about taxes.
In the radio spot, a man talked about how awful it was that Marilyn Kirkpatrick wants to tax haircuts and other services. Don’t be fooled, the man said, this is an income tax in a state that’s not supposed to have one.
Kirkpatrick is the speaker of the Nevada Assembly, a Democrat from North Las Vegas who has said she wants the Legislature to seriously look at tax reform. She has listed a tax on services as one option to broaden the sales tax base, which now is focused on goods except for food and medication.
Other Democratic leaders and some Republicans have mentioned a services tax as a possible compromise, too, although some Democrats are looking for more revenue and Republicans want a “revenue-neutral” scheme.
Either way, Republican Gov. Brian Sandoval has warned he would veto any attempt at increasing taxes this year.
The radio ad, which might be a sign of things to come as tax talks heat up in Carson City, never discloses who paid for it. And the radio station refused to say who sponsored the ad as well.
“We don’t comment on our clients,” said Will Kemp, a highly successful Las Vegas attorney who also happens to own Kemp Broadcasting, which owns KVEG’s Hot 97.5. “We just take the money and run their ads.”
Kemp is famous for winning major cases, including a record $500 million in punitive damages for a Henderson couple involved in the hepatitis C infection case. Lawyers fees are just one of the services that could be taxed, depending on how a services tax is designed and what services might be included or exempted.
Kemp, however, said he hasn’t taken an interest in what’s happening with taxes or at the Legislature right now since he is still deeply caught up in ongoing hepatitis C cases.
“To be honest, I can’t even say if the ad has really run, since I haven’t heard it,” Kemp said.
Since it doesn’t focus on a political candidate or raising money, the ad doesn’t have to disclose its backer.
The Nevada secretary of state’s office said, “The Elections Division does not believe that NRS 294A.348 requires an advocacy group to be named because the ad is not referencing an election or soliciting contributions.”
The ad urged listeners to call Kirkpatrick and tell her they don’t want a services tax.
One concern, foes argue, is that Nevada’s status as a tax friendly state could be hurt by tax reform.
As 50 Cent raps in “I Get Money” — “I ain’t came to get a little bit. I’m trying to get it all.”
— Laura Myers
FEISTY HARRY
U.S. Sen. Harry Reid was a bit feisty with the capital press corps during a brief question-and-answer session Wednesday following his address to the Nevada Legislature.
The 73-year-old said: “Sure, why not,” when Reno Gazette-Journal reporter Ray Hagar asked if he was going to run for re-election in 2016.
“Just asking,” the reporter responded somewhat contritely.
Hagar then asked Reid if Gov. Brian Sandoval will run against him in his re-election bid, and Reid said he did not know.
(For the record, Sandoval reiterated on Thursday that he is running for re-election as governor in 2014 and has no plans to challenge Reid.)
Asked if Sandoval would be a worthy contender Reid said: “Oh sure, everybody’s worthy.”
Asked if he could beat Sandoval, Reid said: “I don’t get involved in fights that I don’t have to.”
“But you’re a boxer,” Hagar said in response.
“But I’m not stupid,” Reid said, prompting a laugh from those in attendance.
In his remarks, Reid also called for the repeal of term limits for state lawmakers, which were approved by Nevada voters in 1996.
It would take an amendment to the state constitution to repeal term limits, a time-consuming process.
“In my view, arbitrary term limits purge a part-time legislature of full lifetimes of experience,” Reid said. “I urge you to reverse this, which denies our constituents the right to select their own leaders. Elections are the only term limits Nevada needs.”
— Sean Whaley
Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760. Follow him on Twitter @STetreaultDC. Contact Laura Myers at lmyers@reviewjournal.com or 702-387-2919. Follow @lmyerslvrj on Twitter. Contact Capital Bureau reporter Sean Whaley at swhaley
@reviewjournal.com or 775-687-3900.
