Las Vegas NowGovernor Flips on Furloughs

Governor Flips on Furloughs

Midnight debates, secret plans, and last minute deadlines. When you hear terms like that you know the state legislature is coming close to the end. It ends on June 1, 2009.

Now all eyes are on a major $800 million tax plan that may drastically alter how your company does business. Lawmakers are playing a delicate chess match right now trying to cut everywhere they can without destroying vital services.

Now at the end, the compromise has turned to taxes and a big increase some are calling necessary. Large companies are going to have to pay nearly double for payroll taxes. Smaller companies will get a break though, their payroll tax will be rolled back slightly.

We all, however, will be paying more in sales tax. That will be a bump of point 3 to 5-percent. Businesses will see their license fees double as well.

The proposals come after weeks of backroom meetings designed to quell any worry on both sides of the aisle.

Right now the bill is expected to pass both houses, be vetoed by Governor Jim Gibbons and then brought back next week for an override.

Republicans like Assembly Minority Leader Heidi Gansert say taxes were inevitable, but she still does not support the entire proposal. "I believe that no matter what, there was going to be some sort of hole. So I don't know that we could get around," she said.

One other idea would be to require mandatory furlough days for state workers. Just 19 days ago, Gibbons brought up the idea and said he would support the program. He thought it would be a good alternative to a big paycut. "I would prefer that. If you're going to ask somebody to take a lower salary, give them something for it. Give them a day off," he said.

That was just over two weeks ago. Now the governor has changed course, saying in a press release, "In execution, furloughs raise a number of problems."

Read Gov. Gibbons Letter on Furloughs

He sent 19 pointed questions to lawmakers from his Human Resources Director, saying the governor's 6-percent pay cuts still would be better. Still more to come here as the clock ticks toward June 1st.