Nevada Teachers Rally to Support Initiative on Profits Tax

RENO — A day after their union filed a business profits tax petition, more than 300 teachers from across Nevada rallied Saturday for the proposed measure, which seeks to improve schools.

The teachers waved placards and cheered after leaders unveiled details of the proposal at the annual meeting of the 22,000-member Nevada State Education Assn.

Union leaders say the demonstration shows Nevada teachers are solidly behind the proposed 4% business net profits tax, despite pleas from Gov. Kenny Guinn to scrap it.

The first-term GOP governor, whose 1998 candidacy was heavily backed by the casino industry, contends that the petition drive would be divisive and destructive.

Ken Lange, union executive director, said his group will rely on public support to overcome Guinn’s opposition. His group’s polls show 60% of Nevadans support the business profits tax, he said.

“The public wants to hear what will make schools better and we think the plan has elements the public will respond to,” he said. “We believe the plan is fair and responsible, and it’ll work.”

The plan would bring in at least $250 million a year in new revenue for raises, more teachers and other education initiatives.

The union maintains that the proposal won’t hurt small companies or drive industry from Nevada. Businesses whose profits are less than $50,000 are excluded, according to the petition filed Friday with the secretary of state’s office.

Businesses could pass the tax to consumers, but the union says that might cost an average family only $7 more a year.

Lange said the association hopes Guinn and legislators embrace the plan eventually.

“We’ve heard the governor say he doesn’t believe in government by petition,” he said. “But he also has said we have a funding problem in Nevada, and this is about the only idea on the table that will generate money.”

Nevada’s state government has a hefty surplus now but could fall as much as $1 billion short of what’s needed to balance the budget by 2009, according to a Guinn administration study.

To qualify the initiative for the ballot, the association must gather 44,009 signatures by Nov. 14.