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Page 54

Nevada

Bob Miller, Democrat

Legislature: Divided

Took Office: 1/89

Grade: B

Bob Miller was lieutenant governor in 1988 when then-

governor Richard Bryan won a U.S. Senate race.  Miller

served the remainder of Bryan's term and was elected to two

full four-year terms in 1990 and 1994.  He is not eligible

to run for a third consecutive term.  Miller has presided

over Nevada during a period of rapid economic expansion.

Since 1988 the state's population has grown by more than

half a million, an increase of 56 percent--the largest in

the nation and about twice as large as the increase in the

next fastest growing state, Arizona).  Economic growth has

primarily been fueled by Nevada's status as one of only five

states with no personal and no corporate income tax.  Many

new Nevadans are refugees from neighboring California and

its high taxes, stifling regulations, and congestion.  Since

pushing through a huge tax increase in 1992--which included

a sales tax hike, a gas tax hike, and new business taxes--

Miller has resisted calls for further tax hikes.  Of further

assistance to the taxpayers, a referendum passed in November

1996 requires that all tax hikes be approved by a 2/3 super-

majority of the legislature.  However, that has not slowed

the flood of new revenues the state's surging economy is

pouring into Carson City.  And Miller has not been particu-

larly reluctant to spend that revenue windfall.  In 1997 he

pushed through a $2.9 billion budget for the 1997-99 bien-

nium, increasing spending by 15 percent over the previous

biennial budget.  Big spending increases were approved for

higher education, mental health, and an expanded class-size

reduction program.  Miller also won approval for Family-to-

Family, a new program designed to teach child-rearing skills

to new parents through free home visits.  From 1990 to 1996

Nevada led the nation in the growth of its bureaucracy,

which expanded by 5.6 percent per year compared to the U.S.

average of 1.5 percent.  When Miller's 10-year reign as gov-

ernor comes to an end next year, Nevada's economy will be

much larger than when he began, but so will state govern-

ment.

Score

Grade

Rank

Overall Fiscal Policy Score

51

B

19

Spending Score

59

B

16

Revenue and Tax Rate Score

48

C

26

Amount

1.3%

Average Annual Change in Real Per Capita Direct General Spending through 1996

-0.3%

Average Annual Change in Direct General Spending Per $1,000 Personal Income through 1996

-2.7%

Average Annual Recommended Change in Real Per Capita General Fund Spending through 1999

-1.0%

Average Annual Change in General Fund Spending Per $1,000 Personal Income 1996-98

2.2%

Average Annual Change in Real Per Capita Tax Revenue through 1997

0.4%

Average Annual Change in Tax Revenue Per $1,000 Personal Income through 1997

-3.4%

Average Annual Recommended Change in General Fund Revenue Per $1,000 Personal Income through 1999

-1.7%

Average Annual Change in Real Per Capita General Fund Revenue 1996-98

1.2%

Average Annual Recommended Tax Changes as % of Prior Year's Spending through 1999

0.0

Change in Top Personal Income Tax Rate, proposed and/or enacted (% points)

0.0

Change in Top Corporate Income Tax Rate, proposed and/or enacted (% points)

0.0

1998 Combined Top Income Tax Rates (Personal plus Corporate) (*0.5)

0.75

Change in Sales Tax Rate, proposed and/or enacted (% points)

7.8

Change in Gas Tax Rate, proposed and/or enacted (cents per gallon) (*0.5)