
A major fight between gaming companies and teachers appears to be over — at least for now. Tuesday, all sides are reacting to a plan to raise room taxes for tourists instead of raising taxes on casinos. That plan could bring millions to Nevada schools.
Eyewitness News spoke exclusively with Steve Wynn and superintendent Walt Rulffes Tuesday. Teachers and casinos are finally seeing eye to eye.
The teachers have been gunning for higher taxes for casinos for months. But this new compromise calms the waters — and surprisingly — makes nearly everyone happy.
When it comes to gamesmanship and intense negotiations, you can't find much better than mogul Steve Wynn. “This isn't a question of us being afraid of one tax. This is a question of leadership,” he said.
The teachers union and the school district need money badly. Superintendent Walt Rulffes says more cuts could be coming. “It's been suggested that we be prepared to deal with another round of cuts in excess of $100 million,” he said.
The question is: should the resorts have to pay more for education? For Wynn, it's better to negotiate than get hit where it hurts with higher taxes.
“That would have involved tens of thousands of layoffs, disasters for purveyors, the construction industry,” said Wynn.
So Wynn called in someone to keep the peace and come to a consensus: assembly speaker Barbara Buckley.
“Let's put the good of the state first, and let's talk about solutions,” said Buckley.
Buckley talked to the teachers and casinos every day over the last week. After the dust settled, the teachers backed off their plans for a big tax hike. Instead — room taxes will go up by three percent.
Wynn has no worries that tourists can foot the bill. “It does not, and will not, based upon my 40 years of experience, impact occupancy or visitation to Nevada,” he said.
This way, tourists pay a few more bucks for a night's stay. Wynn keeps his profits, and Rulffes gets nearly $200 million a year for schools.
“At the 11th hour, both parties felt was a win-win,” said Rulffes.
And for Wynn, the gamesmanship continues — and finally there's a compromise worth fighting for. “And the trick is how to do it without taking two steps forward and five steps backwards,” he said.
So far, only Wynn, Station Casinos and Harrah's have signed off on the deal. MGM-Mirage is not onboard just yet. Tuesday, they issued a statement asking for more accountability for teachers.
Senate majority leader Bill Raggio has some reservations but that he's willing to listen. Supporters hope to have it voted on in November and then ratified by the legislature in February. Wynn said he was confident all the Las Vegas resorts will eventually sign on.
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