Nevada Assembly Gets Governor's Transportation Plan

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CARSON CITY (AP) - The Nevada Assembly's Republican leader says he'll introduce Governor Jim Gibbons' proposal to fund road construction projects by diverting entertainment, room and vehicles sales taxes - even though the plan won't survive as is.

Assembly Minority Leader Garn Mabey says the bill will contain the governor's late-developing plan, but he doesn't expect it to remain as is.

Gibbons has vowed not to raise taxes to pay for Nevada's burgeoning transportation needs, and cover an expected shortfall of at least five (b) billion dollars for highway funding by 2015.

The governor's plan would reallocate Las Vegas-area room taxes and statewide vehicle sales taxes and live entertainment taxes.

Using that revenue, the state Transportation Department could sell two-point-five (b) billion dollars in bonds and begin work on highway construction projects.

The tax-reallocation plan has come under fire from gambling and business interests, who have said that raiding funds used to promote tourism in Nevada is shortsighted and will hurt the economy.

Copyright 2007 by The Associated Press. All Rights Reserved.