Nevada Gov. Brian Sandoval said today he will propose continuing the 2009 tax increase to avoid further cutting education and other services when he builds his budget for the next biennium.
Sandoval's stance is in sharp contrast to his budget approach two years ago, when he vowed he would allow the 2009 tax increase to expire as planned.
Sandoval ultimately included that revenue when a Nevada Supreme Court decision threw into question more than $600 million in local government funds he had planned to use to plug the budget hole.
But Sandoval said he doesn't view the extension of the sunsets as a tax increase.
"Let me be clear, as I've said before, the economy is improving, but I believe we must begin this budgeting process with all the information available," Sandoval said in a written statement. "In addition to avoiding further cuts to education, this decision means there will be no need for tax increases in the next session. Nevadans will pay no more than they are in the current biennium."
Sandoval said the revenue, from increased payroll, sales and car registration taxes, as well as an increased business license fee will be needed to meet increasing budget demands, blaming federal mandates the state must meet.
"While taking into account mandatory caseload growth, primarily in Health and Human Services, federal mandates such as the Affordable Care Act, and critical infrastructure needs, my budget instructions will call for "flat" budgets which will rely on some or all of the revenue from the sun setting taxes," he said.
