Legislative leaders from both parties meet behind closed doors to discuss budget

CARSON CITY -- Feuding lawmakers on Tuesday inched closer toward overcoming a state budget impasse by the June 6 deadline that concludes the 120-day legislative session.

Much of the movement came from Assembly Republicans who assigned eight members to refine their demands for proposed reforms covering collective bargaining, education, prevailing wage, construction defect liability and public employee benefits.

The refinements came after Democrats who control the Legislature put together a 10-page document that highlighted changes they have already made or proposed to laws that Republicans want reformed.

"For my caucus to vote for anything, we have to have some meaningful reforms," said Assembly Minority Leader Pete Goicoechea, R-Eureka. "So far, (Democratic proposals) are kind of token."

The stalemate is over funding for the 2011-13 general fund budget.

Democrats want to spend about $7 billion, a figure that includes proposals to raise $571 million in new taxes and postponement of the June 30 expiration date on about $626 million in existing taxes.

Republicans have so far stood behind a $6.1 billion budget proposed by GOP Gov. Brian Sandoval, who came into office promising to oppose tax and fee increases.

Goicoechea made it clear that any negotiations with Assembly Republicans would be on postponing the expiration of current taxes, not implementing the Democrats' recently proposed 0.8 percent tax on business revenue and 1 percent "transaction tax" on services such as attorneys, haircuts, plumbers and car repairs.

"We are not going to get that done," he said of the new tax proposals. "You have got to be insane to propose a tax now and try to get it implemented."

With less than three weeks to go before June 6, pressure is mounting on lawmakers to avoid ending the session without a budget agreement. That could prompt Sandoval to call lawmakers back to Carson City for a special session shortly before the June 30 end of the fiscal year.

"There is no appetite for coming back. We don't want to come back, they don't want to come back, the governor doesn't want to come back," said Sen. Sheila Leslie, D-Reno. "If you accept that premise, you have to get the job done."

But so far neither Democrats nor Republicans have the votes to get their own way.

Democrats need at least two Assembly and three Senate Republicans to forge the two-thirds voting bloc it takes to raise taxes and overcome a gubernatorial veto. Republicans are in the minority in both chambers and would need at least six Democratic defectors in the Assembly and one in the Senate to pass Sandoval's budget.

Legislative leaders from both parties, the so-called "core group," met Tuesday night behind closed doors.

"I think we are getting a lot closer," said Clark County School District lobbyist Joyce Haldeman, who along with Washoe County School District lobbyist Craig Hulse was called into the meeting to provide information. "I don't want to say anything to upset negotiations because we are at a fragile point right now. But that was productive."

Assembly Republicans have long said they would consider votes in favor of taxes if the proposal was paired with meaningful reforms to reduce government spending in the long term. They've also taken an all-for-one stance within their own caucus, meaning no individual member of the caucus will cast a pro-tax vote unless a majority of nine is in favor.

Senate Republicans have so far stated they won't trade reforms for a tax vote, but on Tuesday hinted negotiation was possible.

After the core group meeting, Sen. Barbara Cegavske, R-Las Vegas, said all 10 Senate Republicans remain against taxes but added "we are listening to everything that is being discussed."

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.