Governor’s Tax Amnesty Program Takes Effect
 

Governor Jim Gibbons signed emergency regulations implementing his tax amnesty program, an effort to bring additional revenue into the state during this difficult economic time.

The Governor originally proposed the tax amnesty program in early May as a method of helping collect additional General Fund revenue owed the state. The regulations received approval from the Nevada Tax Commission in early June and officially took effect today.

“Historical collections from previous amnesty programs tell us the state should collect several million dollars from this one,” the Governor said. “During the recent Special Session, the Legislature relied on at least $4 million from this program to help balance the state’s current budget shortfall, so it’s important the program get up and running.”

In addition to the state share of the collections that will go to the General Fund, school districts and local governments will also receive additional revenue from the increased and new collections.

The program, which runs from today through Sept. 30, waives penalties and interest for delinquent taxpayers owing the state sales and use taxes, modified business taxes and business license fees. All underlying taxes are stilled owed to the state. The Nevada Department of Taxation estimates there is a delinquent balance for these three revenue sources of $76 million.

The two most recent widespread tax amnesty programs generated substantial revenue for the state. The most recent was in 2002 and brought in more than $7.3 million for state and local governments. A similar amnesty program in 1993 generated more than $2.8 million in revenue for state and local governments.

“I truly hope businesses take this one-time opportunity to pay what they owe the state,” the Governor said. “This program should help our immediate needs with a cash infusion, but also our long-term needs by bringing new businesses into the tax system that haven’t already registered.”
 

The Governor Issued the Following Statement:

Today After Signing the Bills From the Special Session

Balancing the Budget for the Remainder of the Biennium

“When I announced my intention to call the Legislature into a Special Session to address an additional state budget shortfall of nearly $275 million, I said I would keep an open mind and give lawmakers all available options when considering how to meet that shortfall. The Proclamation I signed calling the Special Session did just that, and I’m pleased that lawmakers came together to balance this shortfall without increasing taxes.

In the end, the agreement lawmakers reached was very similar to my recommendations. With the discretion I gave them, though, they included some measures that I would have preferred been excluded, particularly reducing the funding for textbooks for our school children. I believe it would be more prudent to have targeted reductions to operating budgets of state agencies and protect these valuable resources. Still, I commend the Legislature for their willingness to make these difficult choices in these tough economic times.

I also believe it would have been appropriate for the Legislature to examine the possibility of bonding the revenue the state receives from the tobacco companies as part of the Master Settlement Agreement. By simply providing the permissive language to sell bonds based on this money, the Legislature would allow further consideration of this concept moving forward, should it be deemed necessary. I believe this option must be kept in mind if our General Fund revenue continues to decline.

I am also committed to getting a handle on our spending practices in this state. During the 2007 Legislative Session, the Legislature and I created a budget, which I signed, that was, in hindsight, simply too large. We have to share the responsibility for this. However, I believe it’s important that we create a stronger cap on state spending that will help us avoid these shortfalls in the future, and that will be a component of my agenda moving into 2009.

Despite the fact that not all my recommendations were adopted, I applaud the seriousness with which lawmakers have taken on the challenge of balancing our budget. Many components of this compromise were only possible by convening the Legislature as a whole, and I thank everyone for taking the time to be a part of the discussion.

At the end of the day, I understand that this is a process that requires compromise. In many ways, the Legislature’s compromise is very similar to the proposal I outlined, and it is in this spirit of compromise that I am signing these bills to balance the state budget for the remainder of the current biennium. These are not easy reductions to state spending, and I appreciate all of those who have worked diligently to ensure a consensus could be reached.

I would also issue a word of caution that this may not be the end of our fiscal struggles. Should additional reductions to state spending be necessary, I commit to continue working with Legislators to find fiscally responsible solutions for the citizens of the State of Nevada.”

Public Comment Period Opens on Governor’s

Climate Change Advisory Committee Report

The final report of the Governor’s Climate Change Advisory Committee is now open for a 30-day public comment period prior to the presentation of the report to the Governor.

The final report is available through the Internet at http://gov.state.nv.us/ClimateSurvey.asp, where public comments can be made. Comments can also be made in writing to the Nevada Climate Change Advisory Committee at 101 N. Carson St., Carson City, NV 89701.

Public comments will be posted to the Climate Change Advisory Committee Web site at the close of the public comment period. All public comments will also be presented to the Governor along with the report on Friday, Aug. 1, 2008

Governor Announces Staff Changes
 

Governor Jim Gibbons today announced several changes to his staff, including the departure of Chief of Staff Michael Dayton and Chief Operating Officer Dianne Cornwall.

Other changes include the appointment of General Counsel Josh Hicks as the Governor’s new Chief of Staff, the appointment of Mendy Elliott as Deputy Chief of Staff, the elevation of Press Secretary Ben Kieckhefer to Communications Director and the departure of Nick Vander Poel, Director of Boards and Commissions.

Gibbons praised the hard work and dedication all departing staff members have shown him during his time as Governor. Dayton intends to return to private sector government affairs work, an area where he achieved great success prior to becoming Chief of Staff. His resignation will be effective July 18.

“Mike has been a loyal, trusted and dedicated Chief of Staff,” the Governor said. “The opportunity for Mike to serve in state government over the past 18 months has given him the ability to work closely on some of the most important issues confronting our state, including transportation and energy. He has a strong passion for public policy issues and I am confident that he will have a great career when he returns to the private sector. My staff and I will continue to seek his valued advice and guidance.”

Dayton said he’s thankful for the opportunity to have served the people of Nevada, but also looks forward to his return to the private sector.

“Nevada has many fine and hardworking state employees and I was honored to work with them on confronting the challenges facing our state,” Dayton said. “I am very appreciative of the relationships that I established with department heads, as well as gubernatorial staffs around the nation. Finally, I would like to thank the Governor for the valuable experience I gained in my roll as chief of staff, and I wish the Governor and his staff well.”

Cornwall will be replacing Mendy Elliott as Director of the Department of Business and Industry.

“Dianne is an incredibly talented leader and manager, and she will be a perfect fit for the Department of Business and Industry,” the Governor said. “Dianne helped lead my office through our successful 2007 Legislative Session, has managed the day-to-day operations of my Cabinet and been the point person in my office for most state business. While her departure is a loss to my office, her vast experience in both government and business makes her a perfect person to lead B and I.”

Cornwall said she’s looking forward to the challenge of leading a state agency, particularly one as critical to the future of our state as Business and Industry.

“It is the people and businesses of Nevada that have ultimately built our great state into what it is today,” Cornwall said. “As the head of the state agency that regulates these businesses, I will work diligently to ensure the best interests of the people are looked after. It will be a tremendous challenge considering the ongoing growth of Nevada, and I look forward to taking it on as the next logical step in my career.”

Elliott will be joining the Governor’s staff as Deputy Chief of Staff after running the Department of Business and Industry for the first 18 months of the Governor’s term.

“During Mendy’s tenure at B and I, she has shown tremendous leadership and management skills, and I’m glad she will now bring that skill set to my office,” the Governor said. “She has accomplished a great deal there, and she is turning over an excellent department.”

“I’ve had a 20-year working relationship with the Governor and I’m pleased he has the faith in me to help champion his efforts for our great state,” Elliott said. “Nevada is fortunate to have a Cabinet comprised of very talented and dedicated individuals, all of whom I am looking forward to working with closely.”

Vander Poel has decided to seek opportunities outside the Governor’s office and will be moving to a position as a Program Director at the Nevada Commission on Economic Development.

“Nick has done an absolutely tremendous job ensuring our boards and commissions are filled with talented people,” the Governor said. “He will be a great asset to Economic Development.”

After serving as General Counsel and Deputy Chief of Staff, Hicks will be taking over as Chief of Staff and working with Dayton during his transition back to the private sector.

“I’m very happy that Josh has agreed to serve as my next Chief of Staff,” the Governor said. “This is a logical progression for him and I have every confidence he will do a great job.”

Similarly, elevating Ben Kieckhefer to the position of Communications Director recognizes the work he is already doing and is, according to Governor Gibbons, “a well-deserved promotion to an excellent member of our staff.”

In announcing the changes, the Governor emphasized the logical progression of turnover within governors’ administrations.

“Working for the Governor of any state is a high-stress job that requires just about everything a person has to give,” Gibbons said. “I fully respect the demands this type of work puts on people, which is why turnover is a normal part of any administration. I again thank everyone who has worked with me for their service to the state of Nevada, and I appreciate the willingness of those moving up to take on the challenge.”