What The Nevada Constitution Requires

Originally posted in a LVRJ Forum

For every dollar the government taxes it spends ~$1.10. Everybody knows that except the Socialists who lurk in RJ Fora.

The Nevada Constitution *requires* the state to fund a small number of functions

1. The three branches
2. Prisons and juvenile hall
3. Assorted bureaucracies (ie AG, Sec of State, Treasury)
4. One public school per district (18 statewide)
5. Three UNR applied science departments (Mining, Agriculture, and Engineering)
6. Institutions for mental and physical disabled
7. A militia (to repel invasion from CA)

While personal income taxes and a lottery are off-limits, the Constitution still gives the Legislature plenty of leeway in deciding how to pay for its obligations. In the case of public education (K-16) perpetual funding was provided through interest-bearing Trusts and an ongoing share of proceeds from fines like traffic tickets. For the few remaining things the General Fund burden is not severe. Probably no more than $100M/yr.

Small, Constitutional minimum government.

Unfortunately, the crooked politicians relentlessly expand government. BIGGER and bigger government requires HIGHER and higher TAXES to fund it. When revenue and spending growth are the same, nobody notices. However when spending growth (inevitably) *exceeds* revenue growth the politicians scream "GAP!" and boost existing taxes to maintain balance.

A "crisis" occurs when existing taxes have reached their economic maxima. The politicians must scramble to find a new source of revenue -- usually "small" at first. With the budget back in balance spending growth continues unabated. Then in a few years, when *that* source has maxed-out they look for yet another. And so on and so on.

The tax-&-spend vortex of death.