Board of Regents Chairman Calls For Tax Increases

By Andrew Doughman / Nevada News Bureau
A prominent education official has called for tax increases to offset the proposed higher education budget cuts in Gov. Brian Sandoval’s budget.
James Dean Leavitt, chair of the board that governs Nevada’s higher education system, said today that he would like the Legislature to use a “revenue enhancement” to offset every dollar the governor proposes to cut from the system.

He said that the Legislature should maintain the level of funds that it appropriated to Nevada’s higher education system during the 2010 special session.
Sandoval’s budget recommends a $162 million reduction in state spending for the next biennium. Chancellor Dan Klaich, who oversees the Nevada System of Higher Education, said yesterday at a legislative budget subcommittee hearing that a 73 percent tuition increase would be necessary to offset that decrease.

Leavitt said the universities and colleges of this state have already taken three successive years of cuts and any further cuts would have a “cataclysmic impact” for the state. While acknowledging the need for spending accountability, he said the system should be properly funded.

“That means coming up with new revenue from any and all sources,” he said. “What’s unfortunate is that we look at any revenue enhancement as a burden and … not a public good.”
Leavitt is the chair of the Board of Regents, the governing body that determines how to spend the money the Legislature appropriates to it. The Board of Regents oversees all of the state’s universities and community colleges.
He condemned the proposed budget cuts at a town hall meeting at UNLV earlier today.
Sandoval, however, has said repeatedly that he would not support a tax increase and would veto any bill containing one.
The governor has also repeated a mantra that government agencies should make each dollar go further.
“You have to have money in order to invest money,” said Dale Erquiaga, the governor’s senior adviser, at a press conference yesterday. “All investors know, when you only have a finite amount of money, you have to make your money work harder, and we believe the budget does that.”

Leavitt, however, said that there’s “tremendous support” for properly funding higher education, partially because there’s a direct public benefit from the system.
Yesterday, Klaich came close to voicing support for a tax increase.
“I’m not sure that the people of Nevada don’t want taxes to support education,” he said. “I don’t just accept the fact that our friends and neighbors don’t want to support education by means of enhanced revenues.”
Other higher education officials have been less supportive of any spending increases. Mark Alden, a member of the Board of Regents, said that new taxes should be the last resort.
He said he needs more time to study the budget and look at every way to cut expenses first. If further evaluation proves the higher education system needs more funding, he said he would support a “modest business tax.”
Today, Senate Majority Leader Steven Horsford, D-Las Vegas, responded to the proposed higher-education budget cuts with a letter slamming the governor’s plan.
Speaker John Oceguera, D-Las Vegas, has also criticized the governor’s proposed cuts to both the K-12 and higher education budgets.
“We all understand that we will not be able to turn around this economy without a well-educated workforce to attract new businesses, yet the governor is proposing draconian cuts to education funding,” he said in a statement released earlier today.
Democrats in the Senate and Assembly have, however, thus far proposed no plan of their own to counter the governor’s.
Erquiaga yesterday challenged Democrats to present their own plan.
“The governor has put his cards on the table,” Erquiaga said. “The other side is talking about the hand they hold.”
The people of Nevada will get to weigh in with their thoughts regarding revenue and budget cuts at tomorrow’s budget, town hall meetings in Reno and Las Vegas.

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