Second mining tax bill fails in Senate

CARSON CITY — Senate Democrats on Saturday night resurrected a previously scuttled proposal to raise taxes on mining companies, amending it to limit its impact on smaller mining operations and adding a provision to send $100 million directly to the state’s public schools.

But the effort again failed to win any Republican support and died on a party-line vote.

The move on Assembly Bill 4 came as the Legislature rushed to adjourn its 11-day-old special session, called to deal with a $1.2 billion state budget hole.

The changes in the mining tax bill were intended to sway at least one Republican to support it, because it requires two-thirds support to pass. But the minority held firm and the final vote was 13-8. Democrats had positioned the bill as their effort to meet Republican concerns on mining industry impacts and restore more schools funding.

As the Senate prepared to vote, Assembly Speaker Jason Frierson issued a statement attacking Republicans for opposing the schools funding increase and said lawmakers “need to bring the special session to a swift close.”

“We are firm in our position that any solution should be immediate and real, and further, that the burden should not fall on the backs of families who have been laid off, can’t get insurance and are staying home for Nevada,” he said.

Major budget bill

The Assembly convened shortly before 8:30 p.m. to pass an amended Assembly Bill 3 on furloughs to state workers and cuts to agency budgets. The amended bill halves the number of furlough days, from 12 to six, and restores nearly $139 million to the budget through transfers and reallocations of other existing revenues. The Assembly approved the bill about 9:30 p.m. on a party line vote, 29-13.

But after a lengthy delay, the Senate adjourned until Sunday having not taken up the bill, meaning there will be at least one more day of the special session. Speaking after midnight, Frierson said the Assembly intended to revisit AB3 and funding for underperforming schools, but didn’t want to keep members in chambers for a process that “could take hours.” The Assembly then adjourned until Sunday as well.

The bill restores just more than $81 million to health care and social services, including $49 million to optional Medicaid services that faced elimination. Another $41.5 million covers the cost of the reduced furloughs — $25.8 million — and also reinstates merit pay for state workers and cancels layoffs.

Significant cuts to the state’s K-12 budget, including $70 million from weighted funds for low-achieving students and $31 million for the state’s Read by Grade 3 program, were not restored in the changes. Those two programs specifically were listed in the bill as the top priorities to backfill if the state receives additional federal relief funds.

Assembly Minority Leader Robin Titus, responded in a statement saying that Democrats, who control both chambers of the Legislature and the governor’s mansion, “have shown they are not willing to act in the best interest of Nevadans.

“At this late date, after many hours of work, and without collaborating with Republicans, our Democrat colleagues have chosen to support unions who fill their campaign coffers over Nevada families,” Titus said.

Mining tax proposal

The revised measure, which together with another change in the mining tax would raise $155.6 million, would still have limited the deductions mining companies can claim on their industry taxes to 60 percent. But it would have exempted mining companies with $10 million or less in gross proceeds. Of the 104 mining companies in the state, only 38 gross more than $10 million and would be taxed.

Despite the new limit, the amended bill would raise nearly as much as the previous version.

The Legislature was back in chambers Saturday after not meeting at all on Friday but didn’t convene until 6 p.m. Earlier in the day, Democrats announced they had gained the support Sen. Keith Pickard, R-Henderson, for an amended version of the mining tax bill. But Pickard quickly backed away from it after meeting with his caucus.

“I had every intention of voting for it until I sat with my caucus this morning who showed me a better option,” he said via a text message.

AB4 was first introduced Thursday night and quickly passed out of the Assembly, where Democrats hold a supermajority and can approve revenue increases without any Republican votes.

Contact Capital Bureau Chief Colton Lochhead at clochhead@reviewjournal.com. Follow @ColtonLochhead on Twitter. Contact Bill Dentzer at Bdentzer@reviewjournal.com. Follow @DentzerNews on Twitter.