Gov. Sandoval Says He Will Seek Property Tax Support For Higher Education System
CARSON CITY – Local governments would lose some property tax revenue to help fund higher education, and college students could face higher fees, in Gov. Brian Sandoval’s budget to be unveiled Jan 24.
Sandoval, in an interview on Jon Ralston’s Face to Face television program, said both elements are in consideration as his $5.3 billion general fund spending plan is finalized in advance of the 2011 legislative session.
Sandoval said he is considering taking nine cents of the property tax to help fund the state’s community college system.
Sandoval faces a major funding gap between existing spending on state programs and education and available revenue. There have been indications for several weeks that closing that gap will rely in part on shifting some of the cost of running some programs to local governments.
Diverting property taxes to higher education would involve such a shift, since the revenues now are used exclusively to pay for local government and public education. The Nevada System of Higher Education is now funded primarily through the state general fund.
Sandoval said he will not raise taxes or fees to balance the budget.
“We’re only going to spend the money we have,” he said.
Sandoval rejected any suggestion that such moves are “hidden” tax increases, noting that different programs are paid for from different pots of tax money. The question is which pot of money is the best choice to provide the various services, he said.
“The people of this state are paying approximately $20 billion and it’s all going into different buckets, and some buckets are better than others,” he said. “And we’re moving the money where it is most appropriate. There is no doubt about it that the university system is an economic engine in this state and that they provide a great benefit, UNLV and UNR, for the local communities. So we feel that it is appropriate for that property tax to go to the universities.”
Sandoval said any decision to raise student fees will be up to the Board of Regents.
Sandoval also confirmed he is looking at efficiencies in state government to save money where possible.
He also confirmed there will be salary reductions, but said massive layoffs of state employees will not be part of his spending plan.
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