Archive for October, 2009

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Democrats Blast Gibbons on Stimulus Spending, Governor Fires Back

By Sean Whaley | 5:58 pm October 14th, 2009
CARSON CITY – The Nevada State Democratic Party today launched an attack on Gov. Jim Gibbons for failing to get federal stimulus transportation and infrastructure projects out to bid in a timely fashion.

“In his typical inept fashion, Gibbons has landed Nevada at the bottom of another list; the state ranks 46th in the number of transportation and infrastructure projects it has put out to bid,” the release says. “While most states have allocated more than 40 percent of their stimulus dollars allotted for transportation projects, according to a report released last month Nevada has put less than 27 percent of its funding out to bid. And the state has begun work on projects that totaled only 23 percent of the state’s transportation and infrastructure funding.”

Gibbons spokesman Dan Burns rejected the criticism, saying the information was inaccurate when it was brought up several weeks ago and it remains inaccurate now.

“We could have done one large project and spent all the money at one time,” he said. “Instead the state is doing a large number of smaller projects that will benefit more people and create more jobs. Even shovel-ready projects have to go out to bid, get equipment ready and get moving.”

The Nevada Department of Transportation reports that nearly $100 million of the $140 million it has received for transportation projects is now obligated. Of the 18 projects around the state under the control of NDOT, 15 are out to bid.

“The money is spent,” said NDOT spokesman Scott Magruder. “We feel we have met, if not exceeded, the expectation of getting these projects out.”

Other transportation projects are being handled by the counties, and Magruder could not speak to the status of those projects.

The Democratic Party release says Nevada’s Democratic delegation to Congress, led by U.S. Senate Majority Leader Harry Reid, worked to bring $1.5 billion in funding to Nevada through the American Recovery and Reinvestment Act.

But Gibbons “foot-dragging” has put Nevada behind the rest of the nation in putting the stimulus money to use, the release says.

Burns said giving Reid credit for Nevada’s stimulus funding is “pathetic and laughable.” Nevada ranks 50th in per capita spending for stimulus funds, he said.

Burns said critics need to take a “Civics 101 class.”

“They have no idea how this government process works,” he said. “There are rules, regulations, stipulations and strings attached. We can’t do this overnight.”

Gibbons is trying to help as many Nevada residents as possible with the funding by creating as many jobs as possible across the state, Burns said.

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Report Says Serious Deficiencies Remain in Nevada’s Transportation Network

By Sean Whaley | 5:44 pm October 13th, 2009

CARSON CITY – Nearly 60 percent of Nevada’s major urban roadways are congested during peak travel times, a situation that will only worsen without significant improvements to the state’s transportation system, a report released today says.

The state has used a combination of federal and state funding to improve its surface transportation network over the past decade, but many needed road projects remain unfunded, according to the report released by TRIP, a Washington, D.C., based national transportation organization.

TRIP is a nonprofit group that promotes transportation policies that relieve traffic congestion, improve road and bridge conditions, improve air quality, make highway travel safer and enhance economic productivity.

The report, called “Future Mobility in Nevada: Meeting the State’s Need for Safe and Efficient Mobility,” says congestion on Nevada’s urban roadways will worsen as the economy begins to recover.

The report also found that:

- The state’s traffic fatality rate is higher than the national average;

- Twelve percent of the state’s bridges are deficient;

- Thirteen percent of the state’s major roads are rated in either poor or mediocre condition.

Because of these deficiencies, the average Las Vegas area motorist loses $1,481 each year in the form of extra vehicle operating costs due to poor road conditions, lost time and fuel caused by traffic congestion, and the cost of traffic crashes. Reno area drivers are estimated to lose $972 annually in similar costs.

According to the report, a number of needed transportation projects will not go forward without a boost in funding, including expanding portions of I-580 in Reno to six lanes, widening portions of U.S. 395 in Carson City to six lanes and expanding portions of I-515/U.S. 95 and I-15 in Las Vegas to 10 lanes.

The report projects that vehicle travel in Nevada will increase by another 70 percent by 2030, further congesting the state’s highways unless significant improvements are made.

This year’s federal American Recovery and Reinvestment Act provides about $201 million in stimulus funding for highway and bridge improvements and $49 million for public transit improvements in Nevada, but TRIP says this is only a “down payment” on needed transportation improvements.

“It is critical that the state adequately fund its transportation system and that Congress produces a timely and adequately funded federal surface transportation program this year,” said Will Wilkins, executive director of TRIP. “Thousands of jobs and the state’s economy are riding on it.”

Much of the information in the report was supplied by the Nevada Department of Transportation. Agency spokesman Scott Magruder said: “Our position is we have far more transportation needs statewide than funding available.”

There is no plan in place at this point on how to fill the gap between need and available funding, he said. In the meantime, the agency will continue to use federal gas tax funds and available ARRA funds to move forward with projects, Magruder said.

TRIP spokeswoman Carolyn Bonifas said the report does not make any specific recommendations on how to bridge the gap between transportation needs and funding.

“Our purpose is to put the information on the table so the governor and Legislature can be ready to make those decisions,” she said. “There are as many solutions as there are states.”

Given Nevada’s current economic condition, getting road projects off the drawing boards and under way would put people to work and help the economy, Bonifas said. It would also ensure a quality transportation system for Nevada that will be critical as the economy recovers and businesses look to relocate or expand, she said.

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Funding for Tax Study Approved Over Governor’s Objections

By Sean Whaley | 11:28 am October 13th, 2009

CARSON CITY – Over the objections of Gov. Jim Gibbons, the Board of Examiners today approved a request to spend $500,000 on a study of Nevada’s revenue structure sought by a bipartisan group of legislative leaders.

The $500,000 figure is not guaranteed to be the final price of the study, an uncertainty that caused Gibbons to vote against the request.

Eight bids have been submitted to lawmakers ranging from a low of $32,200 to $909,861. Six of the eight were for $500,000 or less.

Lorne Malkiewich, director of the Legislative Counsel Bureau, presented the request to the Board of Examiners, saying the actual amount of the contract will be negotiated and approved by the Legislature’s Interim Finance Committee on Nov. 19 if not before.

But Gibbons said it was not appropriate to bring a $500,000 “carte blanche” request to the board. The legislative subcommittee reviewing the eight bids should make a selection and bring that amount to the board, he said.

“It seems to be premature to approve $500,000,” Gibbons said.

The Board of Examiners will meet again before the IFC meeting, and a specific proposal could be approved at that time, Gibbons said.

But the other two members of the board, Secretary of State Ross Miller and Attorney General Catherine Cortez Masto, voted to approve the request. Gibbons is a Republican, while Miller and Masto are both Democrats.

State Budget Director Andrew Clinger informed the board that any amount approved would be a recommendation only, and that the Legislature could appropriate any amount for the study it saw fit.

Malkiewich said lawmakers decided to seek the $500,000 now because of the urgency of the study, which is scheduled to be completed by July 1, 2010. The lawmaker panel is going to review the bids again on Oct. 15.

The $500,000 bid was submitted by The Nevada Consultants Inc., a Las Vegas-based company.

Lawmakers want a study to provide guidance on how to deal with a two-year budget in 2011 that is expected to be as much as $2.4 billion out of balance.

Senate Minority Leader Bill Raggio, R-Reno, the chairman of the panel reviewing the tax study bids, said at a meeting Oct. 7 there is no preordained decision to increase taxes. An impartial study of the state’s tax structure is needed, however, to provide guidance, he said.

His comments were echoed by Senate Majority Leader Steven Horsford, D-Las Vegas, who said the Legislature wants options on how to balance the budget in 2011.

The study is required to be performed by a qualified and independent consultant and will examine the allocation of tax revenues between the state and local governments, the adequacy of revenues and the stability of different tax revenues, among other issues.

A panel of citizens, not yet appointed by the Legislature, will also participate in the study process.

Gibbons vetoed a bill passed by the 2009 Legislature for an appropriation for a revenue study, requiring lawmakers to use their contingency fund instead.

After the meeting, Gibbons said spending $500,000 on a tax study is unnecessary.

If a study is to be funded, do it for the least amount of money possible, he said.

“We don’t have a tax problem in the state of Nevada, we have a spending problem,” Gibbons said.

(This story was updated at 2:08 p.m. on Oct. 13, 2009.)

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Gibbons Makes Two Energy Appointments

By Sean Whaley | 9:43 pm October 12th, 2009

CARSON CITY – Gov. Jim Gibbons announced today his selections to fill two key state positions in the energy field, the newly created commissioner of energy and director of the Office of Energy.

Dr. Hatice Gecol will transfer from her position as director of the Office of Energy to become the commissioner.

“I am pleased to retain the expertise and experience that Dr. Gecol has demonstrated while serving as the director,” Gibbons said. “Her background and planning skills are essential to our future success.”

Gibbons said he is particularly excited about the appointment of Nevada National Guard Chief Warrant Officer Jim Groth, who will take over as the director of the Office of Energy.

“Jim Groth is a can-do kind of guy. Jim has a proven track record of working through bureaucratic red tape and getting things done,” Gibbons said.

Groth presently serves as the Nevada Solar Task Force chairman and is a Nevada Army Guardsman. For the past year and a half, Groth has been serving as the environmental supervisor with the Nevada Army National Guard in Carson City.

In February of this year, Gibbons selected Groth to head the Nevada Solar Task Force which assists military stakeholders in Nevada, state agencies, local governments and commercial businesses with initiatives to develop and implement renewable energy projects. Groth has been instrumental in helping the Nevada National Guard lead the nation in development of solar photovoltaic systems at the state’s Guard facilities.

Groth’s focus in the last year has been the design and implementation of the Guard’s “Super Solar Project,” a 3.4 megawatt project supporting solar electrical energy at the National Guard headquarters in Carson City and at the two largest Army National Guard facilities in the state in Las Vegas. Construction for this project is scheduled to begin in November with system commissioning in March of 2010.

Under Groth’s direction, the Office of Energy will play a major roll in putting into action the 2009 legislation enacted in Senate Bill 358 and Assembly Bill 522 which will stimulate economic growth in Nevada.

Jim Brandmueller, who presently serves as the Energy Efficiency and Energy Conservation Programs manager for the Office of Energy, will be the Acting Director until Groth fulfills his National Guard duties and takes his new position in November.

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Gov. Jim Gibbons Makes New Appointment to the Nevada Athletic Commission

By Sean Whaley | 3:57 pm October 12th, 2009
CARSON CITY – Gov. Jim Gibbons today named Francisco Aguilar to the Nevada Athletic Commission.

Aguilar is presently employed as corporate and communications counsel for The Andre Agassi Foundation for Education and Agassi Graf Holdings. Aguilar’s professional past includes working as senior counsel for Southwest Gas Corp. and as special counsel to the chancellor of the Nevada System of Higher Education. He also serves on the Nevada Community Foundation, the Clark County Housing Authority and the Bond Oversight Committee of the Clark County School District.

“Francisco Aguilar has just the right combination of experience and enthusiasm for the Nevada Athletic Commission,” Gibbons said in a release announcing the appointment. “I am certain he will work closely with the other commission members to serve the best interests of our state.”

“I am proud Governor Gibbons has given me this opportunity to serve on the Nevada Athletic Commission,” Aguilar said. “The commission’s work is important to our state’s economy and to the safety of the participants in the events the commission oversees.”

The five-member Athletic Commission regulates all contests or exhibitions of unarmed combat, including the licensure and supervision of promoters, boxers, mixed martial artists, kick boxers, seconds, ring officials, managers, and matchmakers.

Aguilar’s appointment becomes effective on Nov. 1. He will replace John Bailey on the commission. Bailey’s term expires on Oct. 31.

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Term Limits to Change Nevada Political Landscape in 2010 Election

By Sean Whaley | 3:44 pm October 12th, 2009
CARSON CITY – The November 2010 general election is more than a year away, but a political shift is already in motion as term limits take effect and 17 veteran lawmakers must either leave the Legislature or set their sights on other elective office.

The potential departure of more than a quarter of the state’s 63 lawmakers, some with dozens of years of political experience, could have significant ramifications for the citizens of Nevada.

But the reaction to term limits taking effect in Nevada – more than a decade after they were approved by voters – is mixed.

Supporters suggest that forcing out long-serving lawmakers will bring in fresh blood and new ideas. Term limits will also provide opportunity for newcomers seeking legislative office as a large number of seats will have no incumbents to challenge.

Critics are concerned that the loss of institutional knowledge when veteran lawmakers leave office may weaken the legislative branch of government. The fear is that lobbyists and bureaucrats will become more powerful as newly elected lawmakers  try to grasp the intricacies of the budget process and master complex policy issues.

Janine Hansen, a citizen lobbyist at the Legislature since 1971, said she did not support term limits at the ballot box but is excited about the possibilities now that so many lawmakers will be leaving office next year.

“Our Founding Fathers did not believe in serving endless years in a legislative body,” she said. “Lawmakers are in power too long and the power goes to their heads. They think it is their Legislature and their state rather than responding to the people.”

Hansen, a member of Nevada’s Independent American Party, said term limits may also create opportunities for third-party candidates.

“It is going to be a wonderful year for non-incumbents,” she said. “It will be unprecedented.”

With seven state senate seats being vacated in 2010, a number of opportunities will be available for members of the Assembly to move into the upper house. But it is also possible that members of the Senate may eye an Assembly seat or some other elective office.

Jan Gilbert, a citizen lobbyist for the Progressive Leadership Alliance of Nevada, said she is concerned about the loss of veteran lawmakers because of their knowledge of the issues.

“I do believe it will give lobbyists and staff more power,” she said. “New people can be easily misled. They have to trust that what they hear is true.”

The impending loss of veteran lawmakers such as state Sen. Randolph Townsend, R-Reno, who has extensive knowledge about commerce issues and renewable energy policies, will leave a large void that will be difficult to fill, Gilbert said.

One potential effect of term limits may be a move by groups to use the initiative petition process to get their issues to the voters, she said. If gridlock ensues because there are so many new legislators, it may become a more attractive option for  interest groups, Gilbert said.

Nevada’s longest-serving lawmaker, Senate Minority Leader Bill Raggio, R-Reno, does believe the loss of institutional knowledge of veteran lawmakers will be a negative consequence of term limits. First elected to the Senate in 1972, Raggio is in the middle of what will be his final term.

“The weaker the institutional knowledge of legislators, obviously the more influence lobbyists have,” he said. “The more influence bureaucrats have.”

Raggio said he knows the reasons why various policy decisions were made by the Legislature in the 1970s and 1980s, reasons that will soon be forgotten as long-serving lawmakers are forced to leave office. Many of them will be hard to replace, he said.

Voters put their final stamp of approval on term limits in 1996, amending the state constitution to limit lawmakers to no more than 12 consecutive years in any one political office. But the 12-year clock only started ticking with lawmakers elected in 1998, making 2010 the first year for term limits to kick in. Term limits are also in effect for many local elected officials, the governor and other state constitutional officers.

Jim Wadhams, a lobbyist for more than three decades with a long list of clients, said getting outstanding candidates who can learn the issues quickly will be critical if the Legislature is to handle all of its challenges under term limits.

Term limits are taking effect just as the important processes of redistricting and reapportionment, where new boundaries are drawn for legislators and members of Congress, must be addressed, he said. Add to this complex issue the budget deficit facing the state in 2011, and there is no question but that this will be one of the most challenging sessions in decades, Wadhams said.

Leadership in both the Senate and Assembly will face enormous pressure to get the work done in the 120-day time limit set by the voters for legislative sessions, he said.

Wadhams said that while it may be true that lobbyists will have more power because of their knowledge of the legislative process, new lawmakers are more likely to rely on their own legislative staff for guidance rather than the capitol lobbying corps. Wadhams also noted that most of the Legislative staff live in Northern Nevada, far from the challenges and issues facing Las Vegas.

“It’s too soon to say whether term limits are good or bad,” he said. “There are probably elements that mix both ways. But new lawmakers will have to pay attention. They won’t have two or three sessions to settle in.”

Lawmakers Termed Out in 2010

Sen. Mark Amodei, R-Carson City

Sen. Terry Care, D-Las Vegas

Sen. Maggie Carlton, D-Las Vegas

Sen. Bob Coffin, D-Las Vegas

Sen. Bernice Mathews, D-Reno

Sen. Randolph Townsend, R-Reno

Sen. Maurice Washington, R-Sparks

Assemblyman Bernie Anderson, D-Sparks

Assemblyman Morse Arberry, D-Las Vegas

Assemblywoman Barbara Buckley, D-Las Vegas

Assemblyman John Carpenter, R-Elko

Assemblyman Jerry Claborn, D-Las Vegas

Assemblywoman Ellen Koivisto, D-Las Vegas

Assemblywoman Sheila Leslie, D-Reno

Assemblyman Mark Manendo, D-Las Vegas

Assemblywoman Kathy McClain, D-Las Vegas

Assemblyman Harry Mortenson, D-Las Vegas

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Gaming Revenue Down Again In August

By Sean Whaley | 4:22 pm October 8th, 2009
CARSON CITY – It could almost be considered good news.

For only the second time in the past 11 months, Nevada casinos reported a single rather than double-digit decline in gaming win, this one coming in August compared to the same month in 2008.

Nevada’s statewide casino industry reported a win of $847 million in August, a 9.3 percent decline from August 2008 when the win was $934 million, according to a report released today by the Gaming Control Board.

It was the 20th straight month of revenue decline for Nevada’s biggest industry.

While a single-digit loss was encouraging, Frank Streshley, control board Tax and License Division chief, cautioned that the casino industry is expected to continue to suffer for several more months before an anticipated turnaround sometime in the first half of calendar year 2010.

Baccarat, a card game preferred by high end players, saw a 48.5 percent increase in win by casinos in August to $109.5 million. Without this play, likely the result of international players drawn to the Las Vegas Strip due to a weak dollar, the Nevada gaming win would have been off by double digits yet again, Streshley said.

“I can’t say we’re at the bottom, not with a 9 percent decline,” he said. “Again it’s not double-digit. Without the baccarat play it definitely would have been. So we still have a ways to go.”

The revenue report shows the gaming win in Clark County in August was down 6.7 percent to $708 million. On the Strip, the win was off by 9 percent and totaled $450 million.

Two Clark County markets, both with new properties, were the only two regions in the state to show an increase in gaming revenue. North Las Vegas, where Station Casinos Aliante Station opened in November 2008, saw gaming revenues up 22 percent to $22 million. The Boulder Strip area, where the M Resort Spa Casino opened in March, saw an increase of nearly 22 percent to $63 million.

The numbers were even bleaker in other areas of the state.

Washoe County saw a nearly 21 percent drop to $74 million, while the South Lake Tahoe market was off nearly 29 percent to $22 million.

For Washoe County, it was the 26th straight month of revenue declines. The August win for the county is the lowest for any August since 1989, Streshley said.

For the South Shore Tahoe market, the August win was the lowest since the board started keeping monthly statistics in 1983. In August of 2000, gaming win in this market was $44.1 million.

One factor to consider in analyzing the August report is that the three-day Labor Day weekend fell entirely within September this year, Streshley said.

Overall it was a tough summer, he said. For June through August, revenues were off 11.9 percent.

The continued decline in gaming revenue will keep the pressure on Gov. Jim Gibbons and the Legislature to deal with lower than anticipated tax revenues. A special session of the Legislature is a possibility if revenues don’t show some sign of recovery or at least stability by later this year.

Gaming taxes, a major source of state general fund revenues, are off 7.85 percent for the first three months of this fiscal year and total $153 million.

The forecast for this revenue source was a decline of 4 percent for this fiscal year, but Streshley cautioned that the target could still be hit if the industry rebounds in the second half of the fiscal year.

State Budget Director Andrew Clinger said the August report doesn’t change the budget picture one way or the other.

“We’re down about $7.5 million in gaming revenues so far,” he said. “It’s nothing too alarming at this point. We still have to wait until we get the final first quarter numbers and then we will make a decision.”

Those first quarter numbers are expected by the end of November.

With sales tax revenues included, the state is off by about $10 million from its projections so far this fiscal year, which began July 1. As to whether a special session of the Legislature will be needed, Clinger said it will depend entirely on how severe the shortfall becomes over the next few months.

But any decisions on how to balance the budget will include the Legislature, either in a special session or in cooperation with the Legislature’s Interim Finance Committee, he said.

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Legislative Panel Delays Selection of Consultant for Revenue Study

By Sean Whaley | 3:17 pm October 7th, 2009
CARSON CITY – A legislative panel today decided to seek clarifying information before selecting a proposal to study Nevada’s revenue structure.

Eight proposals were submitted by an Oct. 1 deadline from organizations both within Nevada and across the country.

However not all of the proposals, which range in cost from $32,200 to $909,861, were complete in providing all of the information sought by a working group of the Legislature’s Interim Finance Committee. Lawmakers directed staff to seek itemized costs for six of the eight proposals that did not provide the details.

The panel will meet again Oct. 15 to move forward, either by selecting one proposal or by ranking them in order of preference for the full IFC to consider.

Senate Minority Leader Bill Raggio, R-Reno, chairman of the working group, said he would prefer to recommend a single proposal, although that decision will be made by the entire eight-member panel, five of whom are Democrats.

A tax and revenue study is needed, but it must be free of bias if it is to serve any useful purpose, he said.

“There have been a lot of studies, but they all have some special interest that is funding them or directing them, and that is what I don’t want to see,” Raggio said. “I want to see an objective study that has at least some credibility.”

The decision by the Legislature to study the tax issue does not automatically mean there will be a push for a tax hike in 2011, Raggio said. But the next Legislature will face enormous challenges, given the fact that a $2.4 billion funding shortfall over the current budget has already been identified, he said.

The shortfall estimate is derived from a variety of factors, including tax increases approved in 2009 that are set to expire in 2011 and one-time federal stimulus funding that won’t continue into the next budget cycle.

The legislative working group did recommend that no more than $500,000 be spent on the study, but Senate Majority Leader Steven Horsford, D-Las Vegas, also a member of the working group, said the decision ultimately will rest with the full 24-member IFC.

The working group can negotiate with any of the submitters to bring the cost down, he said. There are also a number of proposals below $500,000 from contractors who may very well be able to produce the type of study lawmakers need to move forward.

“This is not an exercise in spending money,” Horsford said. “We want to pick the most qualified contractor who can evaluate our options for the upcoming legislative session.”

The costliest proposal was submitted by the Center for Regional Studies at the University of Nevada, Reno. The other proposal in excess of $500,000 was for $544,082 from the Center for Tax and Budget Accountability based in Chicago, Ill.

The Board of Examiners, made up of three executive branch officials including Gov. Jim Gibbons, will also vote on the proposal, including the contract cost, next month. But Legislative Counsel Brenda Erdoes told the working group that the IFC has the ultimate authority to determine how much should be spent on the study.

Funding for the study was rejected by Gibbons in the 2009 legislative session. The Legislature is instead using funds available in its contingency fund.

The study is required to be performed by a qualified and independent consultant and will examine the allocation of tax revenues between the state and local governments, the adequacy of revenues and the stability of different tax revenues, among other issues.

A panel of citizens, not yet appointed by the Legislature, will also participate in the study process.

A report is due to the Interim Finance Committee by July 1, 2010.

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Employment Security Council Leaves Unemployment Insurance Rate Unchanged

By Sean Whaley | 4:08 pm October 6th, 2009

CARSON CITY – The Nevada Employment Security Council voted today to recommend no change in the unemployment insurance tax rate for 2010 after hearing from business and labor representatives who said any increase would cost jobs and further slow the state’s economic recovery.

The council, a panel of nine representatives of the public, labor and business, voted to leave the average rate charged to Nevada’s employers for the cost of providing unemployment benefits at 1.33 percent in 2010. The decision runs counter to a recommendation by Gov. Jim Gibbons to reduce the rate to 1.0 percent.

Other options on the table were increases in the rate to as much as 2.33 percent.

The final decision will be made Dec. 7 by Cynthia Jones, administrator of the state Employment Security Division. Jones said barring any major developments between now and that date, she expects to adopt the rate recommended by the panel. Jones said she was not rejecting Gibbons‘ recommendation, but rather accepting the recommendation of the council.

Dan Burns, spokesman for Gibbons, said the governor was disappointed that the council did not provide the tax relief he recommended last week, but was pleased the rate was not increased.

“Now is the time, if you want to create jobs, to take some of the burden off of the employer no matter how small,” Burns said.

By leaving the rate unchanged, the state will have to borrow as much as $1 billion between now and the end of 2010 to cover the cost of providing unemployment benefits, Jones said. There is the potential for interest payments on the borrowed money beyond 2010 as well, which could not come from the unemployment fund, she said. The only other time the state borrowed money for the fund was in 1974 when the tax rate charged to businesses was 2.7 percent.

Employer and employee representatives who spoke to the panel said borrowing from the federal government was unfortunate but necessary.

“I’m here to ask you not to increase the unemployment tax rate paid by our employers,” said Veronica Meter, representing the Las Vegas Chamber of Commerce. “Our state economy and the businesses that operate in it are in difficult circumstances.”

The 2009 Legislature already raised business taxes on the state’s largest employers, she said.

“Your actions today do not take place in a vacuum,” Meter said.

Ray Bacon, representing the Nevada Manufacturers Association, said his membership has been hit hard along with every other employment sector in the recession that has its starting date now pinned to Dec. 2007.

“Go as lightly as you possibly can.” he told the panel.

Danny Thompson, representing the Nevada State AFL-CIO, made a similar plea, saying unemployment rates in the building trades in the Reno area are now at 65 percent in some cases. When the CityCenter and the McCarran International Airport expansion projects are finished, there won’t be any construction jobs in Las Vegas either, he said.

“I don’t think we’re at the bottom yet and we’ve never been at a place we are today,” he said.

Paul Havas, chairman of the panel, said the state is in a difficult economic situation that has not been seen in at least decades.

“The Employment Security Council finds itself in uncharted waters, and the task before us is critical,” he said at the start of the meeting. “We must work towards the goal of reestablishing the trust fund solvency, while at the same time keeping in mind the impact on Nevada business during this period of economic turmoil.”

The panel was told by agency staff that predictions for the future of Nevada’s economic recovery are difficult to make with any certainty.

Bill Anderson, the chief economist for the agency’s Research and Analysis Bureau, said last year the prediction was for an unemployment rate of 8.6 percent this year. Instead it is 11.3 percent on average, hitting 13.2 percent in August. The original forecast was for 44,000 new jobs through 2011. Instead, 75,000 jobs have been lost in 2009 alone.

Anderson said he does not believe there will be any job growth in Nevada until 2011, although 2010 won’t see as big a loss in jobs as has been seen this year. While some job growth is expected in 2011, the unemployment rate will not see any immediate declines to the more traditional 4 percent to 5 percent range, he said. The unemployment rate in 2011 is expected to average more than 12 percent.

“We think a lot of the deterioration is behind us but we’re going to spend a considerable amount of time more or less treading water,” Anderson said.

If the rate recommended by the panel is adopted, it will raise about $313 million in 2010, but the expected payout will be in excess of $1 billion, creating a shortfall and the need to borrow from the federal government in the near term. The state fund is expected to run out of money later this month, requiring the initial borrowing of $264 million this year alone.

Jones said the unemployment benefits must be paid, either by setting the state tax rate higher or by borrowing. But there is a statutory obligation to pay the benefits, she said.

Jones said any borrowed money ultimately will have to be paid back, but business representatives said that should occur after the economy recovers and business can afford to pay the higher rates needed to erase the debt.

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Washoe County District Attorney and Sheriff Announce Intent to Run for Re-election in 2010

By Sean Whaley | 2:49 pm October 5th, 2009

Washoe County District Attorney Richard Gammick and Washoe County Sheriff Mike Haley both announced today their intention to run for new four-year terms in 2010.

A Nevada native from Elko, Gammick was first elected to the position in 1994 after serving for 10 years as a deputy district attorney and chief deputy district attorney.

Haley is in his first term as sheriff, having served previously as under sheriff for the Washoe County Sheriff’s Department. He has served in various positions in the department since 1980.

Both officials announced their political intentions on the Nevada NewsMakers program.

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Lowden Joins Race Against Reid

By Nevada News Bureau Staff | 9:47 am October 1st, 2009

Nevada businesswoman, philanthropist and former state senator Sue Lowden officially entered the campaign for the United States Senate in Nevada today, joining a crowded field of GOP challengers to Democrat Sen. Harry Reid – including Danny Tarkanian, Sharron Angle and Mark Amodei. Lowden announced her candidacy one day after her resignation as Chairman of the Nevada Republican Party became official.

“Higher deficits and higher taxes will not bring jobs back to Nevada,” Lowden said in a press release. “As a U.S. Senator, I will fight to create jobs. I will do so by working to keep our taxes low, our health care decisions in the hands of patients, and our federal government accountable to those who fund it.”

Washington Post blogger Chris Cillizza of “The Fix” wrote today that Lowden immediately became “the highest-profile candidate in an increasingly crowded field hoping to unseat” Reid, adding that “her entry into the race gives Republicans a credible alternative to the Majority Leader.”

Nevada Democrats wasted no time taking aim and firing at Lowden. In a pre-emptive press release put out on Wednesday afternoon, Phoebe Sweet, the party’s Communications Director, issued a “report card” giving Lowden an “F” on Party Building, Ethics, Organization and the 2008 Election while head of the Nevada GOP.

“In 2007, Gov. Jim Gibbons handpicked Sue Lowden to chair the Nevada Republican Party, touting her leadership as the key to turning the party around,” said Sweet. “Now that she’s resigning more than two years later, what do the Republicans have to show for it? The Nevada GOP is broke, disorganized and demoralized from electoral defeats and from watching their governor, lieutenant governor and junior U.S. senator mired in scandal.”

Jen Harrington, a consultant on the Lowden campaign, responded. “The fact that they attacked Sue before she was even a candidate clearly shows they’re running scared,” Harrington said.

The bio on Lowden’s campaign webpage (www.SueLowden.com) notes that prior to moving to Nevada she was an elementary school teacher in New Jersey, the second runner-up in the 1973 Miss America pageant, and traveled with Bob Hope to Vietnam as a member of the USO.

After moving to Las Vegas in the early 1980s, Lowden worked as reporter and anchorwoman for KLAS-TV in Las Vegas. She entered politics in 1992 when she ran for the Nevada State Senate and defeated Jack Vergiels, who at the time was the Nevada Senate Majority Leader.

While in the Legislature, Lowden served as the Senate Majority Whip and Chairman of the Senate Taxation Committee, where she earned a reputation as a solid fiscal conservative. Her work in office earned her the Guardian of Small Business Award from the Nevada chapter of the National Federation of Independent Businesses (NFIB).

Lowden has been married to her husband Paul for 26 years, has four children and one granddaughter.

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