Archive for January, 2011

« Older Entries
Newer Entries »

Lawmaker Questions Sandoval Plan To Securitize Insurance Tax

By Sean Whaley | 10:55 am January 25th, 2011

CARSON CITY – A proposal in Gov. Brian Sandoval’s budget to raise $190 million in revenue by securitizing the state’s insurance premium tax was called “questionable fiscal discipline” today by Senate Majority Leader Steven Horsford.

Sandoval Chief of Staff Heidi Gansert said the proposal is a “last resort” to be employed if needed to maintain essential services in health and human services and public education.

Members of the Senate Finance and Assembly Ways and Means committees heard details of the plan today during a budget overview by state Budget Director Andrew Clinger.

Horsford said the proposal would obligate future legislatures to pay back the $190 million plus $24.3 million in interest payments to generate the money for the current biennium. Payments of about $53.6 million would be required starting in 2014 through 2017.

Horsford, D-Las Vegas, likened the proposal to a homeowner securing a home equity line of credit to use to pay ongoing expenses rather than home improvements.

“It’s like taking out a second on my house to pay my bills,” he said. “And I think a lot of families that have done that, we have seen the consequences of that approach and it has put people in bankruptcy. How is this proposal by the administration any different?”

Gansert said the decision to seek the securitization was not Sandoval’s first choice, but was included in the budget to protect critical services. The proposal will restore $119 million in cuts to the Department of Health and Human Services, including $54 million to keep personal care services to help senior citizens on Medicaid stay in their own homes.

Gansert said the plan does not raise taxes or take money out of the private sector. It is a last resort and may not be needed if tax revenues come in above the Economic Forum projections, she said.

“The priority of this administration is to allow the economy to recover and to do that we held the line on taxes,” she said. “Is this ideal, absolutely not.”

Sandoval’s $5.8 billion general fund budget, which does not raise taxes or fees, is designed to keep as much money as possible in the private sector to promote job creation, she said.

Clinger noted the plan represents only 3.2 percent of total general fund spending, “so overall it is a very small percentage of total state general fund resources.”

But Horsford said the proposal “kicks the can completely to the next biennium and that is questionable fiscal discipline.”

Audio clips:

Senate Majority Leader Steven Horsford questions the insurance tax securitization plan:

012511Horsford1 :10 any home improvement.”

Horsford says homeowners have gone into bankruptcy using such practices:

012511Horsford2 :20 administration any different.”

Horsford calls the plan questionable fiscal discipline:

012511Horsford3 :07 questionable fiscal discipline.”

Chief of Staff Heidi Gansert says the plan is not the administration’s first choice and may not be needed:

012511Gansert :11 ideal, absolutely not.”

Tags: , , , , , ,
Posted in News | No Comments »

Governor Proposes Major Changes To K-12 System

By Andrew Doughman | 6:06 pm January 24th, 2011

CARSON CITY — Nevada’s primary education system would change dramatically under the proposals Gov. Brian Sandoval delivered tonight in his State of the State address.

He would use student achievement data to evaluate educators, provide merit pay for effective teachers and end extra pay for longevity and advanced degree attainment.

Sandoval would also eliminate full-day kindergarten, class size reduction, early childhood education and the gifted program, among other programs. The catch, however, is a proposal to allot school district “block grants” through which districts could choose the programs they want to fund.

“I believe we have put too many constraints on local school districts,” Sandoval said. “If one district chooses to continue class size reduction, so be it. If another district wants to pursue other programs, we will no longer hold them back. Flexibility, local autonomy and accountability are keys.”

Districts may not be able to continue all programs, though, because the governor’s budget reduces support for these programs by $18.7 million. Total support per pupil drops $270 to $4,918 per pupil, 5.2 percent from the 2011 fiscal year.

Senate Majority Leader Steven Horsford, D-Las Vegas, sent out a press release specifically criticizing the governor’s education proposals. “Tonight Gov. Sandoval offered a budget that would gut public education – and our kid’s futures as a result,” he wrote. “This budget would dismantle public education. I will not accept a budget plan that extinguishes all hope for a new Nevada built on better schools.”

The Nevada teachers union also criticized the block grants proposal. Lynn Warne, president of the Nevada State Education Association, said the governor should not lay out a “menu” of options for services because it offers parents no reassurance of what kind of programs will be available to their children.

“What he’s proposing, we have no idea whether that will help promote student achievement,” she said.

The governor, however, has long held that local governments, those closest to their constituents, best know how to deliver services.

“I’m not going to tell local governments what to do,” he said at a press conference following his speech. “Those are decisions that are better made at the local level.”

At his State of the State address, the governor hosted the controversial former chancellor of the Washington D.C. public school system, Michelle Rhee.

“There seemed to be a lot of overlaps and synergies between the things that the governor wanted to focus on in education,” she said. “We’re convinced now that he’s ready to take this on and we want to make sure we’re marshaling the resources to make sure he’s successful.”

As chancellor, Rhee promoted teacher evaluation systems and promoted merit pay.

She said that her organization, Students First, will be in Nevada as resource for legislators, parents and those interested in school reform.

Sandoval has also proposed a statutory change to allow school districts to sweep $425 million out of reserves slotted for debt obligations and into their general operating budgets.

Such a move would mitigate the governor’s proposed budget cuts, but would be a one-time fix.

Freeing up that money would help mitigate losses in the Local School Support Tax and decreased returns from property taxes. Together these represent a decrease of $440.8 million in local funds for K-12 education.

The governor has also proposed a bill to eliminate district’s minimum textbook expenditure requirement. The governor’s plan drew criticism immediately after he released them, but he’s done one thing his antagonists have not: propose an alternate solution.

“I think we have put together an extremely reasonable and flexible budget that recognizes the needs but also recognizes that there are some sacrifices that have to be made,” he said. “My cards are on the table. I’ve put forward a plan.”

Posted in News | 2 Comments »

Gov. Sandoval Proposes Economic Plan To Encourage Private Sector Job Growth

By Sean Whaley | 6:01 pm January 24th, 2011

CARSON CITY – Gov. Brian Sandoval today said he will embark on a multifaceted approach to rebuilding Nevada’s economy by assisting in private-sector job growth, including the creation of a $10 million “Catalyst Fund” to provide one-time incentives to businesses that want to relocate to the state.

Sandoval, who delivered his first State of the State address to a packed Assembly chambers, also wants to double the amount of state general funds invested in the Nevada Commission on Economic Development at a cost of $2.3 million a year.

Economic development was one of the main themes of his address, along with balancing the state budget and education reforms. He received praise for his economic development proposals.

Noting that he developed his plan in cooperation with Assembly Speaker-elect John Oceguera and Senate Majority Leader Steven Horsford, both Democrats, Sandoval said: “I propose a complete overhaul of our state’s economic development program.”

“We propose to redesign the Commission on Economic Development and recommend a 50 percent increase in general fund dollars to run it,” Sandoval said. “A new entity, Nevada Jobs Unlimited, will be a public private partnership existing largely outside state government.

“With a private sector mentality, it will be more nimble,” he said. “And it will be a cabinet-level agency, with the governor joining the lieutenant governor, Senate majority leader, Assembly speaker, and representatives of higher education and other critical stakeholders on the board.”

The new entity will pursue strategies that grow jobs within existing Nevada businesses, as well as recruit companies from out-of-state, Sandoval said.

In the Democrat response, Oceguera said there is bipartisan support for job creation efforts, but that, “we cannot expect businesses to invest in Nevada if we aren’t willing to invest as well.”

Democratic proposals include using public construction money to repair and build an infrastructure for the 21st century and partnering Nevada’s higher education system with emerging technology companies as Arizona and Utah have done.

Oceguera also advocated seeking federal support for a new Interstate 11 connecting Phoenix and Las Vegas, and federal loans to private companies for high speed rail to Southern California.

Sandoval expressed support for both of these transportation projects in his speech.

“A key part of attracting business is to recognize our weaknesses and fix them now,” Oceguera said. “Our ability to grow new jobs paying a decent wage depends on an educated workforce.”

Tray Abney, representing the Reno-Sparks Chamber of Commerce, said he liked both Sandoval’s education reform proposals and his focus on economic diversification.

“Education and economic development are intrinsically linked,” he said. “We need an educated skilled workforce in order to provide the jobs that are coming in this future economy.”

Former Democrat Assembly Speaker Richard Perkins said Sandoval, “had an impossible speech to give” given the economic times.

“If he stays within the constraints of the projections of the Economic Forum, it is really trying to shove 10 pounds in a 5 pound box,” he said. “It is a very, very difficult thing to do.”

Perkins said Sandoval’s economic development plans are “spot on”, but suggested that some of his education reforms may not survive the Legislative process where Democrats are in control.

Another component of Sandoval’s economic development plan is a $10 million “Silver State Works” employment initiative aimed at veterans, unemployment benefit recipients, public assistance recipients and ex-offenders.

A primary goal is to promote a “Work First” culture through employer hiring incentives, on-the-job training and community service. The program is projected to help 10,000 unemployed workers using existing staff resources.

True to his word, Sandoval has proposed a $5.8 billion general fund budget for the next two years that does not raise taxes or fees. Along with the $5.3 billion in projected tax revenue estimated by the Nevada Economic Forum, Sandoval is proposing just over $500 million in additional “revenue reallocations” including $221 million in room taxes that had been proposed to go to teacher salaries but instead would remain in the general fund budget for the next two years.

His plan would also reallocate nine cents of the property tax from Clark and Washoe counties to fund the University of Nevada, Las Vegas, and the University of Nevada, Reno. This transfer would save the state general fund about $121 million.

A final component would transfer $425 million in school district bond repayment reserves to operating expenses for the districts to cover projected shortfalls in sales and property tax revenues, in effect another savings to the general fund.

“When all was said and done, the proposed general fund expenditures in my budget total just over $5.8 billion over the next two years – within 1 percent of general fund spending in 2007,” Sandoval said.

Sandoval has said repeatedly that fostering job creation and growth, not raising taxes on businesses or families, is what is needed to get the state out of the current fiscal crisis.

Sandoval noted in his speech that Nevada’s unemployment rate grew again in December, hitting 14.5 percent.

“In order for Nevada to fully recover, we must focus our energy on job creation,” he said.

To that end, Sandoval is proposing the Catalyst Fund, which will provide incentives to “close deals, finance infrastructure and spur the growth of new jobs.”

“Our future likes in business sectors like technology commercialization, bioscience, renewable energy asset development and defense sector expansion,” he said.

Sandoval cited the company Switch, which developed a two-million-square-foot technology ecosystem campus in Las Vegas, as an example of Nevada’s economic future. The company builds large, secure technology data centers with a telecommunications hub.

“Switch’s vision and innovation are attracting many Fortune 1000 companies to Las Vegas, and they are bringing jobs to Nevada,” he said.

Following the address, Switch founder Rob Roy, who attended Sandoval’s address, said it is time for Nevada to “take a step, really, onto the stage with the rest of America in terms of economic development.”

“We have absolutely put the right man into office to take those things now and really go forward and do some serious economic changes for Nevada,” he said. “We’ve got to move our economy away from just what we’re used to in the past.”

Sandoval’s budget also includes $3 million to help residents of rural Nevada use broadband access to start and grow businesses and telecommute.

Audio clips:

Sandoval says he is proposing a new economic development entity to help create jobs:

012411Sandoval1 :13 be more nimble.”

Sandoval says the entity will grow jobs in existing businesses as well as recruit businesses from out-of-state:

012411Sandoval2 :14 coordination and accountability.”

Sandoval says Nevada needs to attract new business sectors to Nevada:

012411Sandoval3 :11 defense sector expansion.”

Roy says it is time for Nevada to push ahead on economic development:

012411Roy1 :06 of economic development.”

Roy says Sandoval is the right man for the job:

012411Roy2 :10 changes for Nevada.”

Roy says Nevada has to move its economy away from the status quo:

012411Roy3 :07 it’s very exciting.”

Abney says economic development and a quality education system are linked:

012411Abney :11 this future economy.”

Perkins says Sandoval has a tough job trying to live within available revenues:

012411Perkins1 :18 thing to do.”

Perkins says Sandoval’s economic development proposals are on target:

012411Perkins2 :03 are spot on.”

Tags: , , , , , , , , ,
Posted in News | No Comments »

Psst: They’re Always Watching: New Lawmakers Get Education On Dealing With Media

By Andrew Doughman | 6:05 pm January 21st, 2011

New state legislators got the low-down this past Friday about how to deal with the press. The theme woven throughout the legislative training seminar was one of transparency.

“They’re lurking,” said Barry Smith, executive director of the Nevada Press Association, while addressing about 20 new legislators in the Assembly chamber. “Being able to watch all the (legislative) hearings and click through the channels, there are eyes on you all the time.”

Smith pointed out that while many new lawmakers probably encountered the media during their campaigns, the press at the capitol is a different beast.

Ben Kieckhefer, a newly-elected Republican senator from Reno, noted that reporters were using Twitter at that very moment to comment on the goings-on at their seminar.

With reporters able to tune in and Tweet out the news, the press at the capitol could be more omnipresent.

“It’s a different world with Twitter and Facebook and all the jazz,” said Bob Fisher, president of the Nevada Broadcasters Assocation.

Smith also cautioned legislators that they should remember the cameras that broadcast hearings are always running.

“They can tell whether you’re playing solitaire or not,” he said.

During these next few weeks, new legislators will be getting used to new homes, new offices and hundreds of new faces. The training session regarding the press was the last class for the newcomers; they’d been in various classes for three days straight. All of this to ensure that they’re ready for day one.

As the last day wore down, Fisher told legislators they should be aware of the different types of journalists they’re likely to encounter.

“There’s a spectacular difference,” he said. “It is so far between a journalist who has the opportunity to write opinions and share opinions … from a reporter who is coming in and asking you a question about a legislation that you are supporting.”

Like all relationships, Smith explained, the relationships between legislators and the press must be built on trust.

The national reporter who calls a legislator about a bill and is only looking for a good quote doesn’t care about trust. That reporter will never talk to that legislator again.

It’s a different situation when the local reporter sees and talks to legislators everyday, Smith said.

In that situation, legislators were taught about the various gradations between “on the record” and “off the record.”

When the session ended late Friday afternoon, legislators turned out for dinner. Walking out of the Assembly chamber next to this reporter, one new legislator jokingly said that he would have to be “careful” after listening to all that advice.

Tags: , , , , , , , , ,
Posted in News | No Comments »

Nevada’s Unemployment Insurance Fund Could Be Insolvent Until 2018

By Andrew Doughman | 2:08 pm January 21st, 2011

CARSON CITY – Nevada’s unemployment-insurance benefit fund could be in the red until 2018 as the state continues to borrow from the federal government to keep sending unemployment checks.

To make matters worse, a report today shows a 0.2 percentage point jump in the unemployment rate from 14.3 percent in November, 2010 to 14.5 percent during December.

The state’s Employment Security Council had already raised the unemployment tax rate on businesses from 1.33 percent in 2010 to 2 percent this year to help account for the fund’s deficit. But the tax won’t help pay down the millions of dollars in loans immediately.

“Even with this rate increase, the state will continue borrowing funds to pay benefits,” said Cynthia Jones, Employment Security Division administrator.

Assuming that the average tax rate remains at the 2 percent threshold, Jones said she expects the loan repayment to end in 2018.

Gov. Brian Sandoval, however, has said that he would support the expiration, or “sunset,” of any recent tax hikes.

The Employment Security Council annually recommends a rate based on the financial position of the unemployment benefits trust fund, the impact of any rate change to businesses and the balance of revenue versus expenditures.

Dale Erquiaga, the governor’s senior adviser, said that he’s unsure whether the governor would want to cut the rate back the lower 2010 rate.

Doing so, however, would most likely push the 2018 projection for loan repayment further into the future.

Meanwhile, the federal government is asking states to begin paying interest on the money they’ve borrowed. The loans began accruing interest this month, and the first payment is due this September. For every year that the states still owe money, the rate of that increase will jump 0.3 percent until the loan is paid off.

The state government was able to defer interest payments last year because of provisions in the American Recovery and Reinvestment Act of 2009. But starting this month, those federal loans begin to accrue interest at a rate of 4 percent, said Mark Mathers, senior deputy state treasurer.

In order to pay the interest, lawmakers could authorize a separate, special tax for that purpose. They could also follow state Treasurer Kate Marshall’s idea to levy a bond that would help pay off the interest, thus softening the burden for state businesses.

The governor, however, has promised again and again that he will not increase taxes. Although businesses would become subject to the federal tax this September, the governor said at a Jan. 19 press briefing that $60 million would be allocated to cover the interest payments through the upcoming biennium.

That money, however, would come out of the general fund. This would leave less money for health care, education and other vital state functions in the general fund.

Regardless of whether the employer-rate decreases or increases and leaving unanswered the question of who picks up the tab for the interest payments, the fact remains: Nevada owes the federal government $645 million.

“That financial cost will be with us for several years,” Erquiaga said. “That will be with us, arguably, for the whole time we’re here.”

Tags: , , , , , , , , , ,
Posted in News | No Comments »

News Site Launched By Reno Public Broadcasters Will Focus Solely On Nevada Legislative Session

By Sean Whaley | 1:52 pm January 21st, 2011

CARSON CITY – Northern Nevada’s two public broadcasters have teamed up to create something new: a website dedicated solely to coverage of regular and special sessions of the Nevada Legislature.

SessionAccess.org is now live and will provide frequent, in-depth coverage and quick updates on developments from Carson City during the session. The collaborative effort between KUNR (88.7 FM, NPR) and KNPB (Ch. 5 TV, PBS) comes with a commitment from each station to on-the-ground reporting in Carson City.

“By combining our coverage efforts, SessionAccess.org will have one of the best-staffed news organizations covering the legislature in Carson City,” said KUNR News Director Brandon Rittiman. “This allows us to avoid duplicating our efforts and cover a broader swath of topics during what promises to be one of the most heated sessions in Nevada history.”

The site will also offer relevant stories from other Nevada news outlets.

“SessionAccess.org will be a valuable hub for two kinds of users,” KNPB News Director Michael Hagerty said. “Political junkies who want to focus solely on news from the Legislature will find it useful and so will average citizens who want to be informed and have complex issues explained in everyday language.”

Sessionaccess.org will provide coverage of the state-of-the-state address and events leading up to the 76th legislative session.

It’s the goal of both stations to keep this project going through all future regular and special sessions of the Legislature.

Tags: , , , ,
Posted in News | 1 Comment »

Year Of Dramatic Campaign Spending Increases Marks Anniversary Of Citizens United Decision

By Andrew Doughman | 12:54 pm January 21st, 2011

One year later, the impacts of the U.S. Supreme Court’s decision in the Citizens United case are plain to see.

On Jan. 21, 2010, the court ruled that corporate and union donations to political candidates cannot be limited under the First Amendment.

The impact?

During this past Senatorial election, Democratic-incumbent Harry Reid and Republican challenger Sharron Angle together spent about $44 million on their campaigns. Including outside spending, that number is probably above $50 million.

That’s compared to about $8 million spent during the 2004 and 2006 Senate races, when campaign financing laws were still on the books.

At the Congressional level, Democrat Dina Titus and Republican Joe Heck battled it out this year, spending a combined $4 million in a contest Heck ultimately won. That’s actually less than the $4.65 million spent in the 2008 race between Titus and Republican-challenger Jon Porter. But outside spending in the 2010 race accounted for an extra $4.5 million in 2010 compared to $1.8 million in 2008.

In a 5-4 decision, the Supreme Court struck down a provision of those financing laws in Citizens United v. Federal Election Commission.

In striking parts of the Bipartisan Campaign Reform Act – better known as the McCain-Feingold Act – the court allowed corporate donors to give unlimited amounts of money to political candidates or to spend independently on behalf of candidates.

The spending numbers above only track the spending declared by candidates, excluding money spent on their behalf. In the Reid-Angle race, many of the donors to Angle’s campaign were individuals, whereas Reid raked in donations for corporations.

Following the ruling, President Barack Obama said the ruling “gives the special interests and their lobbyists even more power in Washington … while undermining the influence of average Americans who make small contributions to their preferred candidates.”

His 2008 Republican opponent, Sen. John McCain, also criticized the decision. Along with Sen. Russ Feingold, D-Wisconsin, McCain had been a sponsor of the campaign reform law, the provisions of which the court struck down.

Former state Senator Bill Raggio, in an interview on the Nevada NewsMakers program on Jan. 13, also questioned the high level of spending on campaigns in general and in the Reid-Angle race in particular: “I think the money that is spent on campaigns, particularly this last campaign season, was obscene. In just this state alone, $50 million between these two candidates for the U.S. Senate.

“I certainly want to support free speech and the ability of people to back candidates and to fund candidates, but I think there should be some reasonable limit. It may be something that has to be self imposed by individuals or candidates or groups, but I think it was obscene.”

Other groups, however, praised the ruling. The National Rifle Association and the U.S. Chamber of Commerce had both supported Citizens United during the trial. The Cato Institute, a conservative think tank, also issued a statement in support.

“To make campaign spending equal or nearly so, the government would have to force some people or groups to spend less than they wished. And equality of speech is inherently contrary to protecting speech from government restraint,” the statement read.

To mark the one-year anniversary of the decision, Citizens United released a celebratory statement today. Their lead counsel in the case, Theodore B. Olson, said that the decision is the “most important in history.”

“What that decision said is that individuals, under the First Amendment, cannot be inhibited, cannot be restrained, cannot be threatened, cannot be censored by the government when they wish to speak about elections and the political process,” he said. “What could be more important than that?”

One year later, the rancor aroused by the decision appears not to have quieted.

Republicans are pushing for removing more campaign financing restrictions while Democrats are lining up to propose a constitutional amendment to limit corporate spending.

Tags: , , , , , , , ,
Posted in News | No Comments »

Coalition Calls For Tax Hike To Fund Public Construction Projects To Create Jobs

By Sean Whaley | 5:46 pm January 20th, 2011

CARSON CITY – A coalition of construction industry groups today advocated for a tax increase to fund public works projects around the state to help put people back to work.

The Building Jobs Coalition presented its proposal, called the “Creating 100,000 Jobs” report, in press conferences in both Las Vegas and Reno.

The proposal will likely face significant challenges, however, with Gov. Brian Sandoval’s vow not to raise taxes, and from critics of Nevada’s prevailing wage law.

Described as a working draft, the coalition notes that the current economic downturn in Nevada has required the private sector to cut 179,400 jobs. The construction industry has cut its workforce by more than 50 percent.

The white paper offers five strategies to turn this around, the first being the creation of a Nevada Job Bonds Support Fund, a stable, dedicated revenue source for capital construction projects.

One option lawmakers should consider for creating such a fund would be a tax increase, either a one-quarter of a cent sales tax, a ten cent property tax levy, or an “infrastructure” surcharge imposed on all licensed vehicles, the coalition says.

Assuming $100 million in annual proceeds, this would increase bonding capacity to $1 billion over 20 years, enough to support 11,500 jobs and break ground on the hundreds of millions of dollars in state and local projects that have been on hold due to lack of funding but that are ready to build, the coalition says.

Pat Pusich, a Reno architect and the coalition’s co-chairman, said: “Without a comprehensive plan for exploiting its strengths and correcting its deficiencies, Nevada could find its position as an attractive place to live, work, invest and conduct business usurped as the nation’s economy heals.”

Senate Majority Leader Steven Horsford, D-Las Vegas, offered this statement on the proposal: “With nearly 15 percent of Nevadans looking for work, creating jobs is the top priority for everyone in our state. Any ideas to create jobs are welcome and needed. I’m thrilled that this collection of industry leaders has taken the initiative and I’ll be looking at their ideas closely.”

Sandoval on Wednesday reiterated his intent to veto any legislation that contains a tax increase, saying the Nevada business community cannot afford it.

Businesses are doing their fair share, and “they are doing whatever it takes to keep people employed,” he said. But talk of potential tax increases on the part of the Legislature is a concern in the business community, Sandoval said.

“They appreciate my position but there is a legislative session coming up,” he said. “So they are going to be watching very closely to see what the tax policy in this state is going to be.”

Specifically in response to the proposal, the Sandoval administration today said:

“The governor supports the goal of job creation, but believes it is best accomplished by private sector growth. The strategy of spending public money we don’t have may yield short-term gains for some, but do long-term damage to the economy as a whole.

“Since this is the first we’ve heard of the proposals, we are reviewing them with interest. The governor’s top priority is building and fostering a business environment which creates new jobs without adding to the tax burden or spending money Nevada doesn’t have.”

Sen. James Settelmeyer, R-Gardnerville, said the requirement that most public works jobs pay the prevailing wage is another concern with the proposal.

He cited a water quality project on the Carson River that Douglas County officials wanted to pursue with Question 1 bond funds approved by voters in 2002 for parks, water and wildfire needs. The project could have been done for $119,000, but because it exceeded the $100,000 threshold for capital projects, it fell under the prevailing wage law. The final estimated cost was $185,000 and there wasn’t enough money to do the project, Settelmeyer said.

The prevailing wage is set by an annual survey of both public and private construction projects. But with most of the projects in recent years being public works that must pay the prevailing wage, the surveys are skewed and labor rates are going up, he said.

“If we want to put people back to work, I’d rather put two guys back to work for $40 an hour each than give one guy $80 an hour, Settelmeyer said. “I’d rather help two families.”

It’s not right that prevailing wage rates are being pushed up each year while state workers are asked to take a pay cut, he said.

Settelmeyer, formerly a member of the Assembly, protested Nevada’s new prevailing wage rates along with several colleagues when they were announced last year by the Labor Commissioner, but the rates were allowed to take effect.

The Legislature, in a special session in February 2010 called to erase an $800 million shortfall, approved legislation removing a sunset on a voter-approved Clark County tax hike to use for bonding purposes for public works jobs.

The coalition says it is working with key lawmakers to pursue its proposals in the upcoming session.

Some of the projects the coalition says are ready to build include a new county jail for Churchill County at a cost of $50 million, and flood control improvements on the Muddy River in Clark County at a cost of $40 million to $50 million.

Members of the coalition include the Associated Builders and Contractors, the Builders Association of Northern Nevada, Electrical Workers Local 401, the National Association of Minority Contractors and many others.

Audio clips:

Gov. Brian Sandoval says the business community cannot afford a tax increase:

012011Sandoval1 :26 keep people employed.”

Sandoval says the business community is waiting to see what the Legislature does regarding taxes:

012011Sandoval2 :19 going to be.”

Sandoval says he will veto any budget with a tax increase:

012011Sandoval3 :06 will veto it.”

Tags: , , , , , , , ,
Posted in News | 1 Comment »

Gov. Appoints New Director For Nuclear Agency

By Andrew Doughman | 10:29 am January 20th, 2011

Gov. Brian Sandoval has appointed a veteran administrator to keep up the fight against placing nuclear waste at Yucca Mountain in Southern Nevada.

Joseph C. Strolin, formerly a planning division administrator for the Agency for Nuclear Projects, has agreed to be acting director of the agency until the governor can find a permanent director.

Strolin had retired in 2009, after which he consulted for the agency on a part-time basis.

During his career, Strolin helped compile more than 200 reports on the socioeconomic, transportation and risk effects associated with the proposed waste site.

Sandoval, who named Strolin to the position Wednesday, said Strolin’s four decades of service will be “extremely beneficial” as the state continues to fight against the site.

In a press release yesterday, the governor’s staff noted that Strolin will not take his consulting pay or his retirement benefits while serving as acting director for the nuclear projects agency.

Sandoval appointed the former director Bruce Breslow to lead the Department of Motor Vehicles.

Strolin’s appointment comes as the state of Nevada continues its legal fight against the proposed Yucca mountain site.

Posted in News | No Comments »

Nevada Think Tank Says Fundamental Budget Reform Needed

By Sean Whaley | 2:00 am January 20th, 2011

CARSON CITY – Nevada’s budget process is broken and needs fundamental change to bring about reasonable spending and improved performance in public education and the delivery of other government services, a free market think tank says in a new report.

The report, released today by the Nevada Policy Research Institute, says Nevada needs to move to performance-based budgeting. Policy makers also need to give agency administrators more authority over spending in exchange for measurable performance improvements.

Nevada’s current “baseline” budgeting process, where every program is carried forward every two years with spending increases factored in for inflation or caseload growth, has helped bring the state to its current financial crisis, says Geoffrey Lawrence, deputy director for policy at NPRI and author of the report, “Better Budgeting for Better Results.”

The current process has generated spending requests from agencies totaling $8.3 billion for the upcoming two-year budget even though general fund revenues are projected to bring in only $5.3 billion.

Lawrence says in the report: “. . . an inherent flaw in the baseline budgeting method is that it incorporates an implicit assumption of perpetual spending increases for all programs, even if they’re obsolescent, and even during years when revenue growth is insufficient to fund those assumed increases.”

“If lawmakers adopt the more aggressive reform proposals offered here, they will realize more than $3.5 billion in potential savings through simple changes in policy design or implementation measures – and do so without negatively impacting the quality of government services,” he says.

Gov. Brian Sandoval said Wednesday he had not seen the NPRI study but that he embraces the concept of performance-based budgeting. Just rolling up costs on existing programs every two years doesn’t work, he said.

“That’s part of the reason where this budget deficit figure came from,” he said.  “You’re going to see a different approach with regard to . . . performance indicators that I think will be refreshing.”

Despite the gulf between budget requests and revenue reality, Sandoval has said he will balance the state general fund budget without tax or fee increases. But increased fees for college students, which would have to be approved by the Board of Regents and which the NPRI report supports, and the use of some local taxes to fund state programs, are expected to be part of his budget solution.

Sandoval will unveil his budget on Monday in his state-of-the-state address.

Assembly Speaker-elect John Oceguera, D-Las Vegas, had not yet reviewed the NPRI report either. But in an email statement provided via his office, Oceguera said all workable ideas are welcome to help solve the state’s financial problems.

“At this stage of the process we can’t rule anything in or out,” he said. “We have to see what the governor proposes. We have to take a close look at the budget and figure out what’s working and what’s not working. We have some big decisions to make.”

While moving toward the objectives outlined in the NPRI report would require the Legislature to give up some of its broad authority over how agencies and the education system spend their tax dollars, other states have done just that, Lawrence said.

Both Washington state and Iowa have implemented budgeting reforms under Democratic leadership, he said. Nevada’s Legislature is controlled by Democrats. Sandoval is a Republican.

“All lawmakers should be able to get on board with that because what they perceive as priorities may differ, but everyone wants to know that when you allocate funding towards a specific project that you are going to get results for it,” Lawrence said.

In the report, Lawrence says performance-based budgeting was developed by Washington Gov. Gary Locke and resulted in a general fund spending reduction of $2 billion.

This new budgeting process would require lawmakers to identify a prioritized list of broad policy objectives, agree on the proper methods for evaluating progress to the objectives and tie funding to successful achievement of the objectives.

Lawrence says one method of getting state administrators to embrace this process is to use Iowa’s “Charter Agency” model, where officials are charged with meeting performance goals in exchange for greater flexibility in how they spend their funds.

Under this model, an agency director might chose to use the services of a private-sector payroll company than the state Personnel Department, he said.

“There definitely is a case to be made that the incentive structure within the bureaucracy needs to be changed significantly in order for government to more efficiently realize the Legislature’s own priorities,” Lawrence said.

Many of the specific recommendations contained in the report are likely to get a mixed reaction from lawmakers, such as ending the class-size reduction program in the lower elementary grades and eliminating all-day kindergarten in Clark County. The study says the programs have not resulted in improved student performance.

The proposal also recommends changing Nevada’s collective bargaining law to allow local governments to reduce public wages to bring them more in line with the private sector. This one proposal would account for much of the savings identified in the report, anywhere from $656 million to $2.7 billion.

Still other suggestions, such as establishing a tax credit program for private school tuition that the study suggestions could save $1 billion over a decade, would require major legislation.

Lawrence said these are just suggestions for lawmakers as they begin the 2011 session, and that the change to the budgeting process, with other accompanying reforms, are the focus of the report.

“Nevada lawmakers should approach the 76th legislative session knowing that a wide range of options are available that would allow them to improve the efficiency with which state services are delivered,” Lawrence said.

Audio clips:

Geoffrey Lawrence of NPRI says the budget reforms in the report should be welcomed by all lawmakers:

012011Lawrence1 :25 Legislature’s own priorities.”

Lawrence says state agencies need incentives to improve:

012011Lawrence2 :16 results for it.”

Gov. Brian Sandoval says the current budget process has helped create the budget gap:

012011Sandoval1 :06 figure came from.”

Sandoval says he is pursuing improved budget performance indicators:

012011Sandoval2 :10 will be refreshing.”

Tags: , , , , , ,
Posted in News | 1 Comment »

Gov. Sandoval Seeks $60 million From Cash-Strapped General Fund For Loan Repayment

By Andrew Doughman | 6:27 pm January 19th, 2011

CARSON CITY – Gov. Brian Sandoval has proposed spending an estimated $60 million to repay interest on hundreds of millions of dollars in federal loans.

That $60 million would come out of the general fund, said Dale Erquiaga, the governor’s senior adviser. This would leave less money for health care, education and other vital state functions in the general fund.

The state has been borrowing federal money to pay unemployment benefits and now has to repay interest on its loans.

The recession had caused unemployment benefit payouts to quickly outstrip unemployment tax collections, leading Nevada to borrow $645 million from the federal government. Meanwhile, Nevada continues to lead the nation with a 14 percent unemployment rate.

State government was able to defer interest payments last year because of provisions in the American Recovery and Reinvestment Act of 2009. But starting this month, those federal loans begin to accrue interest at a rate of 4 percent, said Mark Mathers, senior deputy state treasurer.

The first bill is due this September.

This leaves the upcoming legislative session as the likely window during which the government will craft a plan to pay its bills.

If the state fails to act, businesses become subject to the Federal Unemployment Tax Act, which levies a 0.3 percent tax on businesses to repay outstanding interest. This tax increases in 0.3 percent increments annually until the interest is paid off.

“You’re basically locked into the federal mechanism for how the advance is retired,” Mathers said.

This would be on top of unemployment taxes that increased from 1.33 percent to 2 percent for most Nevada businesses beginning this year.

The Las Vegas Review-Journal reported that this tax will bring in $410 million in unemployment tax revenue during 2011.

That money can help the unemployment benefits fund back to solvency, but it cannot pay off interest on the state’s debt to the federal government.

In order to pay the interest, lawmakers could authorize a separate, special tax for that purpose. They could also follow state Treasurer Kate Marshall’s idea to levy a bond that would help pay off the interest, thus softening the burden for state businesses.

The governor, however, has promised again and again that he will not increase taxes. Although businesses would become subject to the federal tax in September, the governor said at a press briefing today that he would include the payments in the state’s budget instead.

“I met last fall, immediately after the election, with Sen. (Harry) Reid to have a discussion if we could have some relief on the interest of the unemployment costs,” Sandoval said. “The answer was ‘no.’ So we had built that into our budget.”

Nevada’s unemployment benefits reserves stood at $757.5 million during August, 2008, but the state quickly drained these funds as the recession worsened.

“It went negative when we hit the recession, and we had to pay more benefits than we anticipated,” said Mae Worthey, public information officer with the state’s Department of Employment, Training and Rehabilitation.

The fund currently pays out regular unemployment benefits to 50,000 Nevadans.

As ProPublica has reported throughout this month, 30 states have borrowed more than $40 billion as their obligations to pay unemployment benefits have failed to keep up with revenues.

They reported that the repayment bill is arriving at a particularly bad time as states face a collective $82 billion budget shortfall and continue to have to pay out unemployment benefits on top of the interest.

Posted in News | No Comments »

Sen. Harry Reid Talks Tough On Deficit

By Andrew Doughman | 7:50 pm January 18th, 2011

Driving down debt and reining in federal spending might not be two things people normally associate with Sen. Harry Reid, but that’s what he spent most of this time addressing on television tonight.

“We cannot sustain the spending of this country,” the Democrat said. “We cannot wind up being a Greece or an Ireland and default on our debt.”

Reid spoke on journalist Jon Ralston’s Face to Face television program, where he highlighted the budget surplus he helped create under the Clinton administration. He also downplayed a 2006 vote against raising the debt ceiling under the Bush administration.

Congress will first have to vote whether or not to raise the nation’s debt ceiling, a measure that used to spark no controversy. A rejection to raise the debt ceiling could endanger the country’s ability to borrow money, and could even cause it to default.

Reid said that Congress would first have to vote to lift the debt ceiling above its current $14.3 trillion limit before it embarks on any serious debt reduction.

He said, however, the he is optimistic that Republicans and Democrats can agree on how to drive down the debt.

Reid’s television appearance marked the end of a busy day in Nevada for the Senator. He used the visit to announce his priorities for the new session of Congress.

As reported in the Las Vegas Sun, Reid listed creating clean energy jobs, improving Nevada’s education system, modernizing transportation infrastructure and investing in small businesses among his priorities.

Earlier in the day, he toured a Las Vegas solar panel manufacturing plant and spoke about green jobs and renewable energy.

“We’re going to be able to be energy independent within the immediate future,” he said.

Reid noted that Nevada will be well-poised to export its renewable energy by 2020, when California has established it must supply one-third of its power from renewable energy sources.

Reid also said that he hopes Congress will tackle comprehensive immigration reform and make modifications to the health care law.

“The (health care) bill we passed is not perfect,” he said. “We have a lot of things we can do to help make it better.”

He recommended removing some of the reporting obligations the new law mandated for small businesses, which he said were too burdensome.

On the education front, Reid implored Gov. Brian Sandoval to “step back from election statements” and make tough choices and fund education properly.

Tags: , , , , ,
Posted in News | 2 Comments »

Washoe County Commission Picks Former State Lawmaker Brower To Fill Raggio’s Senate Seat

By Sean Whaley | 12:28 pm January 18th, 2011

The Washoe County Commission today selected former state Assemblyman and U.S. Attorney Greg Brower to replace retired GOP state Sen. Bill Raggio in the 2011 session of the Nevada Legislature.

Brower, the first applicant interviewed for the remaining two years of Raggio’s term in Washoe District 3, said he was seeking the seat purely as a public service. Brower said he agrees with GOP Gov. Brian Sandoval that the upcoming two-year state general fund budget must be balanced with existing revenue.

“The governor is right,” he said. “We can, we must balance the budget without raising taxes.”

Brower was selected after the commission performed a dozen interviews in a public meeting in Reno. Candidates, who also included former state Treasurer Patty Cafferata and former Tax Commission Chairwoman Barbara Smith Campbell, were interviewed in alphabetical order.

Brower served in the state Assembly for two terms in 1999 and 2001. He lost re-election to Sharron Angle.

Candidates had to live in the district and be Republican.

Brower was the unanimous selection of the four commissioners who voted. Commissioner Bonnie Weber had to recuse herself because her husband, businessman Michael Weber, had sought the appointment.

Commissioner David Humke, himself a former GOP member of the state Assembly, said: “We can’t have a 12-way Senate appointment. We can’t even have a two-way Senate appointment. I honestly believe that the experience and the qualifications that Mr. Brower bring are the top for this appointment.”

Commissioner Bob Larkin, a Republican who ran in the Washoe 2 Senate race but lost in the primary, said he most appreciated Brower’s comments that he would work across the aisle with Democrats.

“In this very contentious period of our country, we simply cannot have someone that is not willing to go across the aisle and say, ‘hey, let’s work this out,’ ” he said. “Not sacrifice principle, not sacrifice basic tenets.”

In commenting on his selection, Brower said: “I can tell you that I will not let you down. I look forward to working with each and every one of you. I just look forward to rolling up my sleeves and getting to work.

“There is a lot of very difficult work to do,” he said. “As I’ve tried to explain to you, I think I’m up to it.”

Raggio announced earlier this month he was stepping down after 38 years in the state Senate due to mobility problems. Raggio had served as the leader of the Senate Republican Caucus for decades before being replaced as minority leader for the 2011 session after endorsing U.S. Sen. Harry Reid’s re-election bid. Reid is a Democrat.

Raggio did not suggest a replacement, saying only he would like to see the commission appoint someone who is willing to work with Democrats in solving the huge budget crisis facing the state.

The Washoe County Republican Party had endorsed Brower and Cafferata.

Brower is currently a partner in the Snell & Wilmer law firm. His practice is focused on complex civil and white collar criminal litigation, as well as corporate investigations and administrative law.

Brower joined the firm in 2009 after approximately two years as the U.S. attorney for the District of Nevada. As Nevada’s chief federal law enforcement officer, he supervised all federal criminal prosecutions and all civil litigation involving the United States in Nevada.

Audio clips:

Washoe Commissioner David Humke says Brower is most qualified of the candidates to serve in the state Senate:

011811Humke :22 for this appointment.”

Commissioner Bob Larkin says he appreciates Brower’s willingness to work across the aisle:

011811Larkin :16 sacrifice basic tenets.”

Brower says he will not let the people of Washoe County down:

011811Brower1 :15 thank-you very much.”

Brower says there is a lot of work to do:

011811Brower2 :07 up to it.”

Tags: , , , , ,
Posted in News | No Comments »

Retired State Sen. Bill Raggio Opposes Full Home Rule For Local Governments

By Sean Whaley | 2:07 pm January 17th, 2011

Retired state Sen. Bill Raggio said in an interview aired today that he does not favor granting local governments complete home rule because of the potential for tax disparities between more affluent communities and those with fewer resources.

Raggio, in the second of two interviews aired on the Nevada NewsMakers television program with Sam Shad, said the Legislature has kept taxes, and tax increases, consistent across the state.

Giving local governments that power could result in inequities, he said.

“If you give absolute home rule, take away what is called Dillon’s case, then you’re going to find raising taxes, you’re going to have disparity,” Raggio said. “And we’ve tried to keep taxes consistent, and the rate of taxes consistent, so I think it would create some serious disparities around the state.”

Raggio, a Republican who announced his resignation earlier this month in the middle of his final term in the Senate, served longer in the upper house than any other lawmaker in state history, first winning election in 1973. He cited mobility problems as the chief reason for his retirement.

The Washoe County Commission will pick among 13 candidates on Tuesday for a replacement to serve in the 2011 session, which is expected to be one of the most contentious in state history.

The 2009 Legislature authorized an interim study of home rule, examining the feasibility of increasing the powers of local governments. The final report of the study recommended only modest changes, however.

Audio clips:

Retired State Sen. Bill Raggio says granting complete home rule to local governments would lead to tax disparities:

011711Raggio1 :13 to have disparities.”

Raggio says the Legislature has tried to keep taxes consistent:

011711Raggio2 :09 around the state.”

Tags: , ,
Posted in News | No Comments »

Gov. Sandoval To Pursue Constitutional Change For School Choice

By Sean Whaley | 2:02 pm January 14th, 2011

CARSON CITY – Gov. Brian Sandoval will seek a constitutional amendment in the upcoming session of the Nevada Legislature to allow for public tax dollars to be used in a school voucher program that would include religious schools, a staff member said this week.

Senior Adviser Dale Erquiaga, in a briefing with the media on Thursday, said a voucher bill submitted by former Gov. Jim Gibbons will be rewritten by the Sandoval administration. Sandoval intends to pursue the constitutional change, he said.

Changing the Nevada constitution is a complex process that would take as many as six years to accomplish, including voter approval.

“We will carry a voucher bill, . . . but our voucher bill will be a proposed constitutional amendment,” Erquiaga said. “We think the voucher program ought to cover all schools and they way they’ve done it, proposed to do it, would not be quite as comprehensive.”

Erquiaga did not elaborate on Sandoval’s school voucher plan.

There is currently a provision in the Nevada constitution that prohibits using public tax dollars for religious purposes.

Article 11, Section 10 of the Nevada constitution is a provision called a Blaine Amendment dating back to statehood, which prohibits the expenditure of public funds for “sectarian purposes.”

Courts have rejected voucher school programs in other states because of these Blaine Amendments.

Repealing the Blaine Amendment would require the Legislature to pass Sandoval’s proposal in two consecutive legislative sessions and then have it go to a vote of the people, which could not occur before 2014.

A handful of state lawmakers have tried and failed over the years to establish a voucher plan for Nevada students, giving parents a share of their taxes spent on public education so they can pick a school that best meets the needs of their children.

While other states have had some success, such measures have gone nowhere in Nevada. Two bills were introduced in the Assembly in 2009 to begin such programs. Neither bill got a hearing.

Gibbons tried without success in the 2010 special legislative session to get a hearing on a school voucher proposal that would have changed state law, not the constitution, and so not have required a vote of the people.

The proposal would have provided 75 percent of the local school district’s pupil support to licensed private schools, with no automatic exclusion for religious schools. The constitutional prohibition was to be avoided by a determination of the amount of religious instruction. If a religious-based school spent 25 percent or less of its time on religious instruction, then it would be argued the 75 percent state support would go to the academic instruction portion of the curriculum.

Critics were skeptical that such a law would withstand a legal challenge.

But the measure submitted by Gibbons prior to leaving office, Senate Bill 71, would exclude “faith-based” private schools from participating in the voucher program.

Erquiaga said Sandoval also will address the collective bargaining issue in his state-of-the-state address on Jan. 24, but he will not call for the complete elimination of the law as proposed by the out-going Gibbons administration in Senate Bill 41.

There is another collective bargaining reform bill, Senate Bill 78, requested by the City of Reno, that seeks reforms to the collective bargaining process, Erquiaga said.

Audio:

Sandoval Senior Adviser Dale Erquiaga says a school voucher plan including religious schools is part of the governor’s 2011 agenda:

011411Erquiaga1 :08 quite as comprehensive.”

Erquiaga says Sandoval will propose a constitutional amendment so religious schools can be included:

011411Erquiaga2 :08 proposed constitutional amendment.”

Erquiaga says Sandoval will seek reforms to Nevada’s collective bargaining law, but will not seek complete repeal:

011411Erquiaga3 :16 elimination of it.”

Tags: , , , , , , ,
Posted in News | No Comments »

« Older Entries
Newer Entries »