THE
HEARTLAND INSTITUTE
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Chicago, IL 60603 http://www.heartland.org
Taxes, Education
Clash in Nevada
Author: Chris Atkins
Published: The Heartland Institute 11/01/2003
The state of Nevada is in
the midst of a constitutional tug-of-war pitting Silver
State taxpayers against the state’s education
bureaucracy. For the moment, the state’s top court has
given the edge to the bureaucracy.
The conflict stems from
the inability of Governor Kenny Guinn to secure a tax
increase to pay for his school spending plan. The state
constitution requires that the state fund education ...
and it also requires a two-thirds supermajority in each
house to pass tax increases. While the Governor was able
to persuade the legislature to pass the education budget
earlier in the Spring, he could not garner enough votes
to raise the taxes to pay for it.
After two special
sessions, Guinn sued the legislature in the state
supreme court, asking for an order to force the
legislature to fund education.
“(T)he Legislature has
failed to comply with the mandatory, non-discretionary
provisions of the Nevada Constitution requiring it to
fund education and balance the budget,” Guinn said in a
brief filed with the court.
On July 10, by a 6-1
vote, the state supreme court obliged and went one step
further, ordering the legislature to pass a tax increase
by a simple majority vote instead of the two-thirds
required by the constitution. It reasoned, among other
things, that the substantive education provisions of the
state constitution should be given more weight than the
procedural supermajority requirement.
“The two-thirds
supermajority provision, as passed, created the
potential for an absolute budgetary stalemate in the
Legislature,” the majority ruled in Guinn v.
Legislature. “[J]udicial resolution of the
constitutional conflict was necessary, so that the
Legislature could perform its constitutionally mandated
duties.
“To avoid an impasse
harmful to public education,” the court continued, “we
held that the Legislature could suspend the
supermajority rule in favor of a vote by simple majority
... in order to fulfill its obligations to fund
education and balance the budget.”
Also in a 6-1 ruling, the
court declined on September 17 to rehear its decision.
Carole Vilardo, executive
director of the Nevada Taxpayers’ Association, was
disappointed with the court’s decision. “Denying the
rehearing was not a surprise to me, but it was a
disappointment, particularly in light of the fact that
in the original decision they provided a remedy that had
not been asked for.”
Dissenting Opinion
Justice A. William Maupin
issued the lone dissent to the majority’s ruling. “(T)he
people of this state had every right to make it more
onerous for the Legislature to create new revenue
streams for the operation of government,” he wrote.
Tim Sandefur, a fellow in
the College of Public Interest Law at the Pacific Legal
Foundation, which filed an amicus curiae brief in the
case, agreed with Maupin: “The Court erased an entire
clause of the state’s constitution--a clause added by
the people in two separate elections, by overwhelming
majorities.”
John Eastman, director of
the Claremont Institute Center for Constitutional
Jurisprudence and professor of law at Chapman University
School of Law, questioned the court’s conclusion that
the Nevada constitution contains substantive education
guarantees. “The Nevada Constitution mandates that the
state support one school in each district for six months
per year--a minimal constitutional obligation that was
easily met by the existing funding.” An attorney,
Eastman represented 15 legislators who petitioned the
Nevada Supreme Court to re-hear the case.
The sufficiency of
education funding is the purview of the legislature,
said Eastman, not the courts. “Prioritizing between
education and other governmental services is the essence
of legislative decision-making,” he explained.
Sandefur agreed with
Eastman’s separation of powers concerns. “There are at
least four centuries of traditional common law
protections for the Legislature’s right to decide when
to tax or not to tax the people,” he noted. “But rather
than reining in their spending appetites, Governor Guinn
and the majority of the State Legislature wanted to tax
the people even more. When they found that they didn’t
have the votes, they simply decided to change the rules,
and the Court went along. The whole point of having a
Legislature and Constitutional procedures is so that you
don’t have arbitrary rule.”
Dangerous Precedent
The legislators
represented by Eastman sought reconsideration of the
decision because of the dangerous precedent its ruling
could set for Nevada and other states.
In California, which has
education and supermajority constitutional provisions
similar to Nevada’s, the state superintendent of public
instruction has already threatened a similar lawsuit
because of the budget stalemate in Sacramento.
“I cannot in all good
conscience stand by and watch political conflict disrupt
the education of the children of California,” said
Superintendent Jack O’Connell. “While the circumstances
in Nevada were clearly different than what we are facing
here in California, the heart of the argument that
funding education ought to take precedence over a
procedural requirement rings true.”
California managed to
pass a budget before O’Connell’s threatened lawsuit
commenced, but the threat gave credence to concerns that
the precedent set in the Nevada case could extend beyond
that state’s borders.
“Usually, when government
does something rash, the proper solution is a political
campaign. But in this case, the non-political branch
made a sudden and undemocratic change in the clear
governing procedure of the state, and in the process
violated Nevadans’ right to have their votes count and
to have their Constitution obeyed,” commented Sandefur.
Tax increases may not be
the only unpleasant outcome from the Nevada supreme
court’s decision. Eastman fears something more important
is at stake: “Constitutional government, and the right
of the people to government by consent, is in peril.”
Chris Atkins is director
of tax and fiscal policy for the American Legislative
Exchange Council.
For more information ...
The full text of the
Nevada supreme court’s decision in Guinn v. Legislature
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