CARSON CITY -- It's back to school for most Nevada kids this week - which for the schools, means another year of belt-tightening. According to the Nevada State Education Association, larger class sizes, fewer electives and more supplies provided by parents will be the norm.

However, people are gathering signatures to change that, with a new type of business tax. Lynn Warne, who heads the teachers' union, says a 2 percent "margins tax" would provide more money for schools and ensure that all industries do their part to help finance education.

"It's a much-needed solution, and we feel it's fair that the large businesses - those that post a total revenue of over a million dollars annually - can pay a very small portion of that, 2 percent of their margin, to the schools in the state."

A business group, the Committee to Protect Nevada Jobs, has challenged the Education Initiative, saying there's no guarantee the legislature would spend the money on schools, and that companies should not have to publicly disclose how much tax they pay. Backers of the margins tax need to gather 73,000 signatures by mid-November. If they get them, the idea goes to the Legislature, where it would need a two-thirds majority vote to pass.

Warne says Nevada lacks a stable and predictable income source for education. She says teachers see the initiative as a hopeful note in what is expected to be another tough school year for districts.

"You know, the teachers in the state of Nevada make less than the national average, and what we pay and fund for our kids' education in the state is far below the national average. We need to do better for our kids; we need to do better for our state."

A margins tax could raise $800 million a year. In Warne's view, it is more fair and broad-based than the current state payroll tax, called the Modified Business Tax.