Archive for April, 2011

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Latest Federal Report On ‘Actual’ Jobless Rate Shows Employment Continues To Lag In Nevada

By Sean Whaley | 4:22 pm April 26th, 2011

CARSON CITY – Nevada’s unemployment picture may be improving, even seeing some job growth in March, but a federal report measuring a broader spectrum of the state’s workforce continues to paint a much grimmer picture for those seeking work.

The report through March 2011 using a four-quarter moving average shows Nevada’s unemployment rate at 23.7 percent, highest in the nation. California is second at 22 percent. The national average is 16.5 percent. The report was released Friday.

The quarterly report from the U.S. Bureau of Labor Statistics includes a state-by-state unemployment measure that encompasses discouraged workers and those who are working part time even though they would like full-time employment.

In contrast, the March unemployment rate in Nevada reported by the state Department of Employment, Training and Rehabilitation (DETR) was 13.2 percent, down from 13.6 percent in February. This official rate does not include discouraged and part-time workers.

Both numbers are estimates only.

The labor statistics report shows that Nevada’s broader unemployment rate actually worsened through the first quarter of 2011, up one-tenth of a percentage point from 23.6 percent in calendar year 2010.

By contrast, the national rate declined, from 16.7 percent in calendar year 2010 to 16.5 percent in the latest report. California’s rate also declined, from 22.1 percent in 2010 to 22 percent through March 31 of this year.

Bill Anderson, chief economist of DETR, said the minor change from the 2010 report to the first quarter of this year reflects more of a sideways movement than a further decline. The change is minimal, he said.

“I look at those numbers and I’m starting to see signs of stability,” Anderson said. “We’re starting to see outright improvement in our official unemployment rate, but looking at the broader measure it points towards stability – unfortunately stability at historically high levels of unemployment.”

The “Alternative Measures of Labor Underutilization for States, Second Quarter of 2010 through First Quarter of 2011 Averages,” shows six different jobless rates using different measures. The broadest definition, U-6, includes “discouraged workers,” defined as people who want work but who had not searched for work in the previous four weeks because they believed no jobs were available to them. It also includes “marginally attached” workers, defined as those who had not looked for work in the previous four weeks for any reason.

Finally the measure includes those employed part-time for economic reasons, defined as those working less than 35 hours per week who want to work full time, are available to do so, and gave an economic reason – their hours had been cut back or they were unable to find a full-time job – for working part time. These individuals are sometimes referred to as involuntary part-time workers.

The Bureau of Labor Statistics notes that the broader definition of unemployment is based on relatively small sample sizes at the state level.

Even so, DETR had this to say about the actual unemployment rate when it cited the figure in a release last year: “Use of the alternative measure of unemployment for research purposes is limited since the information is only available for the past five years, so comparisons to past recessions is not possible. But, from a policy perspective, the actual unemployment rate presents a more complete picture of what is currently occurring in the economy.”

“Despite the historic run up in the unemployment rate, the reality of the recession’s impacts on Nevada’s workforce is much worse than presented,” the agency said in reporting the number in August.

Nevada’s March jobless report showed some cause for optimism on the jobs front, however, showing an increase in employment over March 2010, the first expansion in 38 months. Total nonfarm employment in the Las Vegas area increased by 10,100, and is up 0.5 percent from the same month last year. Employment in the Reno-Sparks area increased by a modest 600 jobs, while employment in Carson City was essentially unchanged, adding just 100 jobs. Both areas have slightly more jobs now than they did a year ago.

“Nevada’s labor markets showed signs of life in March, hinting at what may be the beginnings of an economic recovery,” Anderson said in announcing the latest official monthly jobs report earlier this month. “Employment increased on an over-the-year basis for the first time since January 2008, and results of the household survey showed a solid decline in unemployment.”

Anderson said he does not have data to indicate whether Nevada’s recent job growth is in part-time work, which would drive the actual employment rate as reported by the Bureau of Labor Statistics higher.

“That kind of information just simply isn’t available, at least in a ready format,” he said.

Audio clips:

DETR Economist Bill Anderson says the change in the quarterly actual unemployment rate is minimal:

042611Anderson1 :32 state’s labor market.”

Anderson says the number shows stability, although stability at historically high levels:

042611Anderson2 :21 levels of unemployment.”

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Lawmakers Set To Release First Maps In Redistricting Process

By Andrew Doughman | 12:15 pm April 26th, 2011

CARSON CITY – State legislative Democrats plan to be the first to reveal their proposals for redrawing political boundaries of Nevada’s Assembly and Senate this Thursday.

Democrats will introduce maps of the proposed boundaries and then debate their suggestions together with Republicans in the Assembly chambers during the evening, said Speaker John Oceguera, D-Las Vegas.

The unveiling of the maps represents the first public look at what promises to be a contentious debate about the state’s political districts.

Sen. David Parks, D-Las Vegas, said that the first maps will most likely show districts that reflect the Legislature’s current size of 21 Senators and 42 Assembly members.

As such, the maps should reflect a shift of one Senate seat and one or two Assembly seats to Clark County, reflecting the growth in population in that county. The Senate map may also show changes to the state’s two dual-districts, which Parks and others have earlier said will likely go extinct with this round of redistricting.

Senate and Assembly Republicans have not yet said whether they will join Democratic leadership in presenting proposed redistricting maps on Thursday.

“At this point we don’t have any maps to bring,” said Assembly Minority Leader Pete Goicoechea, R-Fallon.

Oceguera said he expects the Legislature to unveil and debate proposed Congressional maps sometime next week. Those maps will show the addition of a fourth Congressional district added to Nevada due to population growth during the past decade.

The proposed districts could affect many Nevadans. People currently living in predominantly Democratic districts could find themselves drawn into predominantly Republican districts. Rural Nevadans could find their voices drowned out by being in a largely urban district.

Nevada’s Legislature must redraw the boundaries of its political districts every 10 years with the release of U.S. Census Data.

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Bill Removing Mining Industry Eminent Domain Privileges Passes Assembly, Heads To Governor’s Desk

By Andrew Doughman | 8:17 pm April 25th, 2011

CARSON CITY – A bill removing the mining industry’s right to take private land heads to the governor’s desk after passing in the Assembly this evening.

Senate Bill 86 gained early bipartisan support when Sen. Michael Roberson, R-Las Vegas, joined the bill’s sponsor, Sheila Leslie, D-Reno, in criticizing a corporation’s ability to take land from a private citizen.

The bill passed the Senate 21-1 and the Assembly 41-1 with two rural legislators from the Elko-area, a mining community, voting against the legislation.

But Assemblyman John Ellison, R-Elko, later said that he does not support eminent domain rights in any situation. He said he voted against the bill by mistake.

Gov. Brian Sandoval has not said whether or not he will sign the bill into law.

The bill arriving at the governor’s desk is among the least controversial of several proposals relating to the mining industry.

Progressives in Nevada have argued for removing the mining industry’s special provisions in Nevada’s constitution and reducing the amount of allowable tax deductions for the mining industry.

The mining industry has also come under fire after it was revealed that the state had not been auditing the industry’s tax deductions and that state regulators may have had a cozy relationship with mining lobbyists.

Senate Bill 86 also removes the same eminent domain privileges for the state’s now-defunct sugar beet industry.

 

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U.S. Rep. Joe Heck Gives Praise To Gov. Sandoval For Budget That Does Not Increase Taxes

By Sean Whaley | 7:28 pm April 25th, 2011

CARSON CITY – U.S. Rep. Joe Heck praised GOP Gov. Brian Sandoval in remarks to the Nevada Legislature today for proposing a budget that does not raise taxes, saying it is the way to an economic recovery.

Heck, R-Nev., also expressed appreciation for Republican lawmakers who so far this session have supported Sandoval’s no new taxes or fees position during the lengthy review of his two-year, $5.8 billion general fund budget.

Heck, a former state Senator, narrowly defeated incumbent Rep. Dina Titus, D-Nev., in the 2010 general election to represent District 3 in Southern Nevada.

Rep. Joe Heck, R-Nev., speaks to the Nevada Legislature today/Photo: Andrew Doughman, Nevada News Bureau

Heck said job creation is the way for Nevada to grow its way out of its fiscal problems, and he pointed to the state of Virginia as one that dealt with a large budget deficit by cutting spending, not raising taxes.

“In fact, a number of states have begun to recover more quickly,” he said. “It is because they listened to small businesses, they listened to the people who create jobs and they reduced government spending without increasing taxes. They did this to inspire confidence and establish predictability.”

Virginia has created nearly 100,000 new jobs since early 2010, Heck said.

“Yes, there were painful reductions to programs people cherished, but I would trade the criticism resulting from cutting or eliminating a handful of programs if it meant 100,000 more jobs in Nevada right now,” he said. “People want a paycheck, not a government check.”

In comments to the press after his remarks, Heck said unemployment is “the root of all evil” in Nevada.

“We need the jobs,” he said. “And burdening businesses, burdening individuals with higher taxes, is not going to create jobs.

“I think you’ve got to exhaust every possible opportunity to rein in those programs that have lost sight of their original mission, or aren’t accomplishing what they were intended to accomplish and that means cutting,” he said. “Every program means something to somebody.”

Heck acknowledged it is difficult to grow the economy and attract high end businesses without a good educational system.

“You’ve got to concentrate on what generates a result,” he said. “That is why career and technical education needs to be funded and funded well.”

Education spending needs to focus on the skills needed to diversify the economy, Heck said.

Heck also said in his remarks to Sandoval and lawmakers that the federal government has to get its spending under control or tax increases will be inevitable.

“We must work together to return government spending to responsible levels,” he said. “That means making difficult decisions to bring government in line with the private sector, it means demanding accountability and performance, and it means forcing government to do more with less. That’s what our families have done.  It is what our businesses have done and it is what our government must do.”

Heck also praised Sandoval and Lt. Gov. Brian Krolicki for focusing on economic development and job creation in the legislative session, issues that have the support of Democrats as well.

“Many have talked about Nevada’s potential to be a leader in renewable energy, and I agree,” he said.

That is why Heck said he supported the continuation of the federal loan guarantees for renewable energy projects.

“But we must also look past the energy production side of the equation,” he said. “We must have serious discussions about bringing the research and development as well as the manufacturing components of this industry to Nevada. That is where the sustainable, good-paying jobs will materialize. I will continue to support research and development tax credits, work to streamline the bureaucracy to access Nevada’s lands that remain under federal control, and expedite the federal permitting process while protecting the environment and maintaining safety.”

Audio clips:

Rep. Joe Heck says states that are beginning to recover balanced their budgets without raising taxes:

042511Heck1 :19 without raising taxes.”

Heck says budget cuts are painful but necessary:

042511Heck2 :17 something to somebody.”

 

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Governor Sandoval Rebuffs Democrats’ Request For Public Hearings On Ensign Replacement

By Andrew Doughman | 3:57 pm April 25th, 2011

CARSON CITY – The answer from Gov. Brian Sandoval is no.

Today the governor’s senior adviser, Dale Erquiaga, rebuffed a proposal from state Democratic legislators to hold public hearings and a public review process in selecting a replacement for resigning U.S. Sen. John Ensign, R-Nev.

“I think the law and tradition are clear, this is an executive decision,” Erquiaga said at a press briefing this afternoon. “We appreciate the Assembly’s and Senate’s advice, but it’s not relevant to the current decision.”

Erquiaga said the governor has just two criteria for an appointment: the appointee should have a political ideology similar to Ensign’s and be qualified enough to “start work right away.”

The governor should select an appointee to the U.S. Senate by the end of this week, Erquiaga said. That decision would come ahead of May 3, the day Ensign officially resigns.

Assembly Democrats today argued for a one week period to allow candidates to declare their intention to be considered to replace Ensign. Under their proposal there would be an additional one week period when the governor would hold public hearings equivalent to public job interviews for the candidates.

“A question of public importance requires, I think, an open and transparent debate,” said Speaker John Oceguera, D-Las Vegas.

A similar vote in the Senate today provoked a party-line vote with Republicans arguing that both state law and the state’s constitution are clear that the governor should make an executive appointment.

Even one Senate Democrat seemed upset with the measure, which he said has “nothing to do with the work of this body.”

“We have so much to do,” said Sen. Mark Manendo, D-Las Vegas. “Really that [measure] has nothing to do with what we should be doing here. … It sounds like the constitution is pretty clear the governor gets to make an appointment.”

Oceguera’s statement echoes the reasoning Democrats have used to debate the governor’s proposed general fund budget in large, public hearings. Erquiaga praised the Legislature for efforts to “obtain additional information and have an open discussion.” But he said not all decisions are matters of public debate.

“You can’t even compare them. The budget process is always done in committee … that’s the budgetary process, that’s not an executive appointment,” Erquiaga said.

Assemblyman Lynn Stewart, R-Las Vegas, echoed Erquiaga in his call for the governor to follow precedent set in law and in Nevada tradition.

“I think we ought to keep the system that’s effective for both parties, Democrats and Republicans, since 1864,” Stewart said.

The Democrats proposal, Assembly Concurrent Resolution 8, seems to preempt a likely Sandoval appointment of current U.S. Rep. Dean Heller, R-Nev. If Sandoval appoints Heller to the Senate, that would mean Heller’s seat would become vacant and a special election would have to be called to fill it.

“Any appointment that creates a vacancy in another office which necessitates a subsequent special election will cost Nevadans hundreds of thousands of dollars of taxpayer money at a time when severe cuts to education and essential services are under consideration,” the resolution states.

Secretary of State Ross Miller said this past weekend there are a number of costs associated with an election: printing up ballots, sending out ballots, securing locations for voting, programming voting machines and staffing the polling locations. He said, though, there is no “generic price tag” for an election.

Sen. David Parks, D-Las Vegas, said that the public should have a chance to ask questions of potential appointees, suggesting a question seemingly designed for Heller.

“Should we spend tax money on a special election at a time when the governor has asked us for shared sacrifice? We’ll only know the answer to critical questions like this if they are asked,” he said.

Senate Republicans, however, reiterated Assembly Republicans’ comments that past governors have had no controversy in appointing replacements for resigning member of Congress.

 

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Tea Party Express is Back on the Job in Nevada

By Elizabeth Crum | 12:47 pm April 24th, 2011

They’re BAAAACK…

Yes, Dear Readers, the Tea Party Express (TPX) is once again attempting to influence Nevada state politics in ways some say make little pragmatic sense and even (I would wager) contradicts what some folks on their Nevada mailing list are hoping happens in the coming weeks.

Exhibit One, a recent TPX missive suggesting that Governor Sandoval should appoint a placeholder (rather than Rep. Dean Heller) to John Ensign’s soon-to-be vacated Senate seat:

FOR IMMEDIATE RELEASE: April 22, 2011
CONTACT: Levi Russell at Levi@FrontlineStrat.com or (509) 979-6615

TEA PARTY EXPRESS CALLS FOR CONSERVATIVE ‘PLACEHOLDER’

Grassroots group asks Governor to avoid forcing a Special Election

The Tea Party Express (www.TeaPartyExpress.org) today called on Nevada Governor Brian Sandoval to appoint a distinguished Nevadan as an interim appointment to the vacant U.S. Senate seat so voters can have an unbiased final say in the elections of 2012.

Under Nevada law the Governor must appoint a successor to replace Senator John Ensign, who announced his resignation from the U.S. Senate as of May 2nd.  Speculation is that Sandoval is interested in appointing Congressman Dean Heller to the vacant Senate seat.

Such an appointment would create a House vacancy at an inopportune time as the Congress is addressing the serious debt and excessive spending of the federal government.  In addition, because Nevada has not had experience with Special Elections, it is an uncertain process to select a replacement to Heller.

Since historically around the country, appointed U.S. Senators have fared poorly in efforts to get re-elected in their own right, it makes more sense for the Governor to appoint a conservative Nevadan to fill out the remaining term of Senator Ensign, rather than put an appointed Senator in great jeopardy of not winning re-election in 2012.

The Tea Party Express suggests that distinguished Nevadans such as former Governor Bob List and former Treasurer Bob Seale would make outstanding interim appointments.  They could serve with great distinction for the next two years, and Nevada would be continuously represented in the House and Senate without the disruption of a Special Election.

Some have suggested the law be interpreted or changed so that political party caucuses would be used to select nominees.  We are opposed to any process that favors political insiders over the views and interests of the conservative voters of the state.

For further information or to schedule an interview, please contact Levi Russell at Levi@FrontlineStrat.com or (509) 979-6615

Huh…?

I hate to rain on anyone’s Tea Party Parade, but many TPX contentions regarding the possible outcomes of a party-chosen vs. primary-elected candidate are highly questionable. Where to begin…

First, assuming Governor Sandoval appoints Dean Heller to the Senate, Nevada special election rules dictate that he will then set a special election date (to occur within six months) for the open House seat. Once that date is chosen, there will be either a “free for all” primary election for all parties, or — as TPX points out — the parties will nominate candidates according to party rules (generally: via a vote of each party’s caucus or central committee). Whichever way it goes, the rules will be the same for all parties.

We do not yet know which scenario it will be, because Nevada law is a bit vague and in any case may be overridden by a federal statute. Secretary of State Ross Miller will issue an opinion on the law as soon as the governor announces his appointment, and we’ll go from there.

Second, the claim that the NV GOP caucus is made up of “political insiders” not only reveals typical TPX animosity toward all party structures, but also illustrates their (apparent) ignorance of the Republican ground game in Nevada. The executive board of the Clark County Republican Party, which accounts for a large percentage of the state’s GOP caucus (because 70% of the state lives in Clark), was last year taken over by Tea Party and Ron Paul types who are anything but party “insiders” and members of the good ol’ boy establishment. Naturally there are still some insiders on the inside, but they do not by any means run the GOP show.

What was left unsaid in the TXP presser is this:

If a GOP central committee caucus vote decides who the Republican candidate will be, their darling, Sharron Angle, probably does not stand much chance to be the chosen one. Sad for them — especially in light of the $500,000 they threw into her primary campaign last year — but the fact is, tea partiers and old-schoolers alike are concerned Angle could lose to a likable moderate or conservative Democrat. Whether fans of Angle or not — the base is divided on the Angle question, and her negatives with the base are high — many Republicans say they are just not prepared to risk a loss.

At this point, many Republicans say they believe state party chairman and former state Senator Mark Amodei, Lt. Gov. Brian Krolicki, or pretty much any other GOP candidate has a better shot to win a general election than Angle. They know Heller’s district is by no means assured to the Republicans, and they want to nominate the most conservative candidate with the best shot at holding the seat.

Second, regarding the incumbency advantage or disadvantage for Heller, there is an argument to be made either way…but Heller probably stands to lose little and gain much by already being in the Senate when he runs for the seat next year. Such as: more statewide name recognition (which he very much needs in Clark County), use of Senatorial stationery and the NRSC’s statewide mailing lists, and some sensible Senate votes to point out to Nevada’s voters when campaign season is in full swing next summer. It is foolish to claim with any confidence that Heller, if appointed to the Senate, has less of a chance at reelection than otherwise.

Third, re: redistricting, it will not in any way be decided by the outcome of the special election, but by the inner workings of the Nevada Legislature and possible the courts. Redistricting depends on numerous factors including:

– various negotiations re: the state budget (the two should not be related, but they are)

– the gumption of the governor re: vetoing Democrat-drawn redistricting maps (Sandoval so far seems unafraid to use his veto stamp, and he has stated he’ll veto as many maps as it takes to get a fair final version)

– potential compromise-driven crossover votes from either moderate Democrats or Republicans in the Nevada senate (possible), and

– whether or not the matter ends up in court, which it very well may.

In any case, there is little (if any) doubt that Governor Sandoval is going to appoint Dean Heller to the Senate…so TPX is likely wasting its energy seeking a different outcome.

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Former CIA Director Lobbies For Energy Bill, Says Matter Of National Security

By Andrew Doughman | 2:00 am April 23rd, 2011

CARSON CITY — The Legislature played host to a former director of the CIA yesterday, who came to voice support for a renewable energy bill.

James Woolsey, director of the CIA between 1993 and 1995, said the passage of the bill is a matter of national security.

Senate Bill 184 would establish a “feed-in tariff” program in Nevada, which would allow small-scale solar, wind, geothermal and other energy producers to “feed in” their energy to the grid.

Public utility companies would set a cap on the energy it collects and would pay producers of energy at a standard rate.

Woolsey said the program would likely mean a half percent increase in the utility bills for the average household’s energy bill.

But Woolsey said the cost is worth it.

“Whether you’re worried about terrorists or hackers … if you lose power because of these accidents, because of terrorist attackers on transformers, because of hacker attacks, you are just out of business,” he said.

Former CIA director James Woolsey speaks in the deli at the Nevada Legislature about establishing a feed-in tariff, renewable energy program in Nevada, which he says is a national security issue. /PHOTO Andrew Doughman, Nevada News Bureau

The feed-in tariff program would allow Nevada to maintain power for critical functions even if an attack or natural disaster disrupted the main power supply.

Hundreds or thousands of small-scale producers would together provide a sizable chunk of Nevada’s energy. Woolsey said these are small facilities “which would be a spare acre on a farmer’s property and maybe the roofs on his barn, the top of a parking garage in Las Vegas or Reno, the top of a church, the top of a school.”

The concept is similar to diversifying an investment portfolio. A down market in one sector will not make you a beggar if you have investments in other sectors.

“It’s the difference between a very difficult situation on one hand versus a collapse of civilization on the other,” Woolsey said. “So there’s a big premium, I think, to essentially being able to have distributed generation for reasons of security.”

Woolsey does, however, have personal reasons to push for investment in renewable energy. He is a partner in venture capital firms that invest in clean-energy technology.

NV Energy has testified against the bill during past Senate hearings.

The company argued that a feed-in tariff program would create “significant consumer cost increases,” and suggested that their current approach to using renewable energy works and saves money for consumers.

“We support strategies that ensure that renewables are developed and integrated into the utility grid in a manner that does not expose our customers to diminished reliability,” wrote Judy Stokey for NV Energy.

Woolsey, however, contended that the program would be sound. In the bill, the Public Utilities Commission of Nevada would review and revise the program periodically.

Other critics of renewable energy policies in general have said that such legislation means government picks a winning technology rather than letting market forces sift through various modes of energy production for a lasting winner.

“It depends on whether you believe that the government should consider national security in putting together some of the rules and regulations for energy,” Woolsey said. “The government was involved in stringing telegraph lines, the government was invovled in the Pony Express, the government was involved in the railroads going West … there is virtually no aspect of energy production that has not been substantially guided by the federal government.”

Woolsey spent yesterday lobbying for the bill, met with Lt. Gov. Brian Krolicki, himself a proponent of renewable energy business development, and met with the media.

He will appear today on local journalist Anjeanette Damon’s television program, To The Point, at 6:30 p.m.

Senate Bill 184 is being considered in the Senate and must pass by Tuesday, the deadline for passing bills out of their house of origin.

 

 

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Assembly Republicans Hold With Gov. Sandoval On Higher Education Budget, Ensuring Funding Impasse Continues

By Sean Whaley | 7:39 pm April 22nd, 2011

CARSON CITY – After a lengthy hearing in the Assembly today on what several witnesses said were the catastrophic effects of Gov. Brian Sandoval’s budget recommendations for higher education, Republican members held firm with the executive branch in a series of funding votes.

The votes came in a meeting of the Committee of the Whole, where all 42 members of the Assembly heard testimony on what higher education officials and supporters said were reductions that would mean closing off access to higher education to as many as 19,000 Nevada high school graduates.

Dan Klaich, chancellor of the Nevada System of Higher Education, talked about the effects of Sandoval’s budget in hearings in both the Senate and Assembly.

Higher education Chancellor Dan Klaich testifies in the Senate today/Photo: Andrew Doughman, Nevada News Bureau

Today he offered an alternative to the Sandoval budget that would increase student fees by 13 percent, require cuts in operating budgets of another 13 percent, and see $100 million in additional revenue from lawmakers. The final element of the plan would restore additional funding in the second year of the budget if the economy recovers and revenues come in higher than projections.

Sandoval’s budget would reduce state funding to the system by $162 million.

Heidi Gansert, chief of staff to Sandoval, and Andrew Clinger, the state budget director, defended the higher education budget and responded to questions at the hearings.

The administration’s position has been consistent: that the key to getting Nevada out of its economic downturn is to create more jobs, and that tax increases would slow any recovery.

The 16 Assembly Republicans held firm with Sandoval in the votes, which included questions about whether to support Sandoval’s proposed higher education budget. The Republican caucus picked up two Democrats in support when the vote was on the question of whether the Assembly should support tuition increases of 10 percent to 15 percent to offset some of the budget reductions to higher education in the Sandoval budget.

Democrats Harvey Munford and Marilyn Kirkpatrick, both from Southern Nevada, voted with Republicans on the tuition question.

Munford, D-Las Vegas, said he thought tuition increases seemed reasonable in light of the state’s financial situation.

“That’s a pretty common practice across the country when you’re short on funds,” he said. “Sometimes finding additional funding requires increasing tuition.”

Kirkpatrick, D-North Las Vegas, also said it seemed as though the Board of Regents would approve a tuition increase of somewhere between 10 to 15 percent anyway.

“I think we are going to end up raising tuition,” she said. “I just hope we can keep the same quality of education as we do that.”

The mostly party-line votes mirrored those in the Assembly on Tuesday, when the subject was the public education budget. The Senate budget hearings did not include votes by the 11 Democrats and 10 Republicans.

Democrats seeking to offset some of what they argue are the worst cuts in Sandoval’s budget need the support of a few Republicans to raise taxes or continue those tax increases approved by the 2009 Legislature that are set to expire on June 30.

Sandoval has been unwavering in his position that he will not raise taxes or fees as part of his two-year, $5.8 billion general fund budget. Democrats need three GOP supporters in the Senate and two in the Assembly to raise taxes and override a Sandoval veto.

In the Senate Committee of the Whole hearing, Sen. Michael Roberson, R-Las Vegas, asked Klaich about his alternative budget proposal: “For argument’s sake, if we need $100 million … where does that come from or where do we cut?”

Klaich replied that the Legislature could mitigate many of the worst cuts, including those proposed for higher education, if it considers extending the 2009 tax increase that is scheduled to end this July.

“We are talking about a budget that is built on giving a tax cut in the upcoming biennium to the largest businesses in the state by allowing the taxes to sunset,” he said.

The 2009 Legislature increased the business tax on the state’s largest employers as part of a tax package to help balance the current budget. Those increases were required to sunset, however, on June 30 of this year.

Sandoval has rejected any suggestion of extending the sunsets to add more revenue to his budget.

The Senate hearing also featured some of the state’s prominent businessmen speaking to the benefits of higher education. They said corporate philanthropy may be in danger if businesses cannot be assured the state views its universities and colleges as long-term, sustainable investments.

Representatives from businesses in the Las Vegas Chamber of Commerce echoed last week’s chamber memo, in which the chamber outlined a plan for reforms to the state’s higher education system paired with a possible tax increase.

Today, a representative from the Henderson Chamber of Commerce made a similar statement.

“Members are almost universally supportive of higher education,” said Kirk Claussen of Wells Fargo and the Henderson Chamber of Commerce. “…If they can be assured that the taxes they are already paying into the state are being effectively and efficiently spent, they are willing to come to the table to talk about additional taxes to help support the system.”

The votes suggest that bringing the 2011 legislative session to a close won’t be an easy task. If an acceptable budget is not in place by June 6, when the session must end, at least one and possibly more special sessions could be necessary, running the budget debate well into the summer.

Nevada News Bureau Intern Andrew Doughman contributed to this report.

 

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Rural Lawmakers Could Pay High Price For Backing Governor On Budget

By Andrew Doughman | 4:15 pm April 22nd, 2011

CARSON CITY – Nevada’s rural Republican legislators are struggling to defend the cuts to their communities in the governor’s budget.

Democrats have been showcasing cuts to the rural counties in order to convince rural Republican legislators that a vote for tax increases is a vote to mitigate the harm to their districts.

Senate Majority Leader Steven Horsford, D-Las Vegas, said that rural counties are already “cut to the bone,” and in many cases could lose all that they have left.

“Are they willing to be so loyal that they hurt the very constituents that elected them?” Horsford asked.

Many of the governor’s budget cuts would affect rural counties. The budget reduces the money going to rural health clinics or shifts that responsibility to county governments. Many clinics and college campuses that have branched out into the countryside are slated to consolidate to more populated areas.

So far, these cuts have not pushed any rural Republicans to voice anything but support for Gov. Brian Sandoval’s proposed general fund budget.

“There’s nobody blinking, so to speak, from the rural areas about increasing taxes,” said Sen. Dean Rhoads, R-Tuscarora.

Rural legislators say they understand they must share in the cuts, but that the cuts should be fair. For some Democrats, though, that means rural counties need to shoulder more of the burden.

 

Senate Majority Leader Steven Horsford, D-Las Vegas, here speaking before the Senate, has highlighted impacts of Gov. Brian Sandoval's proposed budget. "I'm particularly concerned about the impact to the rural and underserved communities," he said today./PHOTO: Andrew Doughman, Nevada News Bureau

This Monday, Assemblyman William Horne, D-Las Vegas, said that Washoe and Clark counties have to subsidize the rural counties.

“A lot of you come from areas of the state that are taking from the largest counties of the state,” he said to his fellow legislators in the Assembly chambers.

Horsford has argued that it is unfair for the state to divert property tax revenue from Clark and Washoe counties to the University of Nevada, Reno and the University of Nevada, Las Vegas when counties like Elko and Eureka, beneficiaries of Great Basin College, do not.

The governor’s staff has said that Washoe and Clark counties benefit economically from the state’s two universities and should therefore pay more to support them.

“If you close Great Basin College, which does mining and other training to the mining industry, if you close that campus, that’s going to have a tremendous economic impact to that region,” said Horsford, who earlier urged the Board of Regents to consider closing campuses to save money. “So to suggest that there’s no economic benefit to those rural communities either by underfunding or funding their programs, I’m not understanding their logic.”

The governor’s chief of staff, Heidi Gansert, said that Washoe and Clark counties have more money. The governor is asking all counties to pay for a greater share of health services, but she said the two largest counties can shoulder that burden and rural counties cannot.

Despite this defense, budget cuts in rural counties worried Sandoval enough that he traveled to Elko this past Saturday to listen to concerns from county officials and state legislators.

Rhoads said he had personal chats with the governor during the flights to and from Elko. They discussed cuts to the Wells Honor Camp and the rural bookmobile program. Rhoads said the governor told him he would “add back” funding for these services if the state receives more revenue as the economic recovery inches forward.

“He’s looking at amending this stuff back in now,” said Assemblyman John Ellison, R-Elko, who also met with the governor in Elko this past Saturday. “I think at the end of the day … I’m hoping it’ll be fair.”

From left to right, Assemblyman John Ellison, R-Elko, Senator Dean Rhoads, R-Tuscarora, and Assemblyman Tom Grady, R-Yerington, watch Rep. Shelley Berkley, D-Nev., address the Legislature earlier this week. Gov. Brian Sandoval visited Rhoads and Ellison earlier this week to discuss budget cuts to rural districts. /PHOTO: Andrew Doughman, Nevada News Bureau

Budget Battle Could Pit Urban Against Rural

Sandoval has said before that the Legislature is free to move money around within his budget. As long as the $5.8 billion arrives at his desk without taxes and fee increases, he will sign it.

“If you don’t want to spend more in this account and move it to that account, that’s the Legislature’s prerogative,” said Dale Erquiaga, the governor’s senior adviser, at a press briefing earlier this week.

But Erquiaga later suggested that policy decisions “pitting urban against rural” would be bad for the state.

“I don’t think he [Sandoval] has given a carte blanche,” said Sen. James Settelmeyer, R-Gardnerville, suggesting the governor would not sign a budget that overtly hammers rural Republican districts.

Given the magnitude of the governor’s proposed cuts, it is unlikely that any one legislator would be spared cuts to his or her district.

“As long as we’re not taking more than their [urban legislators'] share, everyone is willing to do their part,” said Senate Minority Leader Mike McGinness, R-Fallon.

But what is “fair” is a matter of debate. Just like in Congress, legislators will try to do what they can for their districts. This time, though, that is less a matter of bringing home the bacon than it is of saving the farmhouse.

State entities, however, may have an monetary incentive to favor urban districts. Centralizing services in cities could save money while reaching the majority of Nevadans.

“We’ll offer fewer classes at fewer locations,” said Nevada System of Higher Education Chancellor Dan Klaich. “In particular, this could impact rural locations that could suffer as our colleges focus on serving the greatest number of students.”

That pressure, however, does not mean rural legislators are pushing to be first in line to vote for a tax increase.

“Most of my constituents have indicated that in these tough times we have to make some cuts,” Settelmeyer said. “Most of them have told me they would prefer to make tough choices [over raising taxes].”

The cuts, though, still could become a bargaining chip. The governor has said he wants “shared sacrifice,” but the Legislature could end up with an Animal Farm scenario in which all cuts are equal, but some cuts are more equal than others.

***UPDATED April 23, 2011 to reflect  that no NSHE entities are fully closing, although some satellite campuses may close.***

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Gov. Sandoval Says Premature To Speculate On U.S. Senate Appointment, Democrats Want Open Selection Process

By Sean Whaley | 2:23 pm April 22nd, 2011

CARSON CITY – As Gov. Brian Sandoval today said it is premature to speculate on who he will appoint to replace GOP U.S. Senator John Ensign, Democrats in the Nevada Legislature said they will seek a resolution urging a “fair, open, and transparent process for appointing a temporary replacement.”

Ensign announced yesterday he is resigning from the Senate. Rep. Dean Heller, R-Nev., who announced earlier he would run for Ensign’s seat in 2012, is viewed by political observers as the favorite to win the appointment. If Heller is appointed, he could run as the incumbent in 2012.

Rep. Shelley Berkley, D-Nev., has announced her intent to seek the Senate seat in 2012 as well.

Ensign, who had previously announced he would not seek re-election, surprised a lot of people in Nevada with his decision to resign effective May 3. The Senate Ethics Committee is investigating Ensign over events related to his affair with a former aide.

The news of Ensign’s resignation was first reported by Nevada political commentator Jon Ralston via Twitter.

In response to a flurry of speculation about his replacement, Sandoval today released a statement about the selection process.

“Under Nevada law, the governor has the authority to make an appointment of some qualified person to fill the vacancy, who shall hold office until the next general election,” Sandoval said. “Under Nevada law, there is no established time frame for making such an appointment. In Nevada’s history, only eight U.S. Senators have been appointed, most recently Paul Laxalt on December 18, 1974.

“Pursuant to the relevant law I expect to announce an appointment before the resignation effective date of May 3,” he said. “I take very seriously the importance of this appointment, so to speculate on potential candidates for appointment before then would be premature.”

Nevada Legislative Democrats also weighed in on the appointment process today, saying they will pursue a resolution asking for a public review of potential appointees, “in response to reports of potential deal making.”

The resolution will call for the governor to release a public time-line, including a window for those interested to apply, as well as a time frame for the public to review qualified applicants prior to the governor’s decision on the vacancy. The U.S. Senate seat must be filled in a timely manner, but a public process for doing so will not inhibit that imperative and will allow for a more informed, deliberative decision, Democrats said in a news release.

“The Senate does not belong to any particular party; it belongs to the people of Nevada,” said Assembly Speaker John Oceguera, D-Las Vegas. “This decision is too important not to be done in the light of day.”

Democrat lawmakers noted that when state Senator Bill Raggio resigned in mid-term in January, the Washoe County Commission, which was charged with making the temporary replacement, conducted public and transparent hearings and required all qualified applicants to apply.

“If the public deserved an open and transparent process to replace a state Senator, then certainly they deserve no less when appointing a U.S. Senator,” said Senate Majority Leader Steven Horsford, D-Las Vegas. “This is a time to put people before politics and do this right.”

If Heller is appointed, it will create further political ripples in Nevada. Heller’s appointment to the Senate would leave a vacancy in his District 2 House seat, requiring a special election. A number of Republicans, including former U.S. Senate candidate Sharron Angle, and current state Sen. Greg Brower, R-Reno, have expressed an interest in seeking the seat. Democrats are likely to seek the seat as well.

List of appointed U.S. Senators from Nevada:

1912: First appointed Senator was W.A. Massey (R) who was appointed on July 1, 1912, to succeed George Nixon (R) who died on June 5, 1912.

1918: Charles Henderson (D) appointed on January 12, 1918, to replace Francis Newlands (D) who died on December 24, 1917.

1940: Key Pittman (D) died November 10, 1940, 5 days after being re-elected. Berkeley Bunker (D) appointed on November 26 to full the Senate seat until the next general election.”

1942: James Scrugham (D) defeated Bunker in the primary. Bunker resigned December 6 to provide Senatorial seniority.

1945: Edward Carville (D) appointed on July 24, 1945, to replace Scrugham who died on June 23, 1945.

1954: Patrick McCarran (D) died while campaigning on September 28, 1954. Ernest Brown (R) appointed on October 1, 1954, to succeed McCarran. Lost general election to Alan Bible (D) and subsequently resigned on December 1 to give Bible seniority. Bible appointed on December 2, 1954.

1974: Alan Bible resigned on December 17, 1974, to give newly-elected Paul Laxalt (R) seniority. Laxalt appointed December 18, 1974.

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John Ensign, Episode…Too Many

By Elizabeth Crum | 10:35 am April 22nd, 2011
With yesterday’s preemptive, hastily announced resignation, Senator John Ensign’s graceless fall from grace continued. Despite stating he is leaving office in order to spare his family and constituents any further stress, the timing — shortly after an Senate Ethics Committee quietly voted to continue their 22-month investigation, possibly via public hearings — made the cause of Ensign’s departure evident. The specter of the falling axe sent the senator scurrying for the exit when nothing else would.
 
Ensign thought — or at least fervently hoped — his decision not to seek a third term was the end of an ugly political affair birthed months after an almost inconceivable conception: a shocking and sordid personal affair with the wife of a dear friend and top aide, fertilized and fed by Ensign’s ego. The junior senator’s parents were not only complicit but participatory in the attempted cover up, issuing a series of “gift” checks to the Hamptons totaling $96,000. The Federal Elections Commission saw fit to take the Ensigns’ expanatory affidavit at face value and dismiss a Citizens for Responsibility and Ethics in Washington (CREW) complaint regarding the payments.
  
But the saga may not be over, even yet. The sequel and (we can only hope) final episode is pending and tied to the fate Doug Hampton, former Ensign staffer and cuckhold, who now stands indicted on seven counts of illegal lobbying. Should Hampton produce damning evidence of Ensign ethics violations in his own legal defense, as he has hinted he may, the Department of Justice may take a second look at the senator.
 
In addition, even after Ensign vacates his seat on May 3, the Senate Ethics Committee may release some or all of the evidence it has gathered. This may also motivate the Justice Department to get off its legal duff and move forward with an investigation and possible indictment. Indeed, the committee’s statement yesterday hinted it was in possession of serious findings when it said the resignation of Nevada’s junior senator was “the appropriate decision”.
 
Many Nevadans disagree, believing Ensign’s so-called appropriate choice came far too long after his initial inappropriate act and subsequent machinations to be considered befitting behavior for a United States Senator. The time for doing the right and proper thing is long past, they say. Their disgraced native son–once on the probable short list for the vice presidency on a near-future national ticket–has done too little, too late.
 
It is said it is never too late for redemption, but Ensign’s resignation will be an unprecedented, indelible black mark on Nevada’s already tarnished political history books. It is a legacy the already embattled Battle Born State could do without.

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President Obama Touts Renewable Energy In Reno Visit

By Andrew Doughman | 2:55 pm April 21st, 2011

RENO – President Barack Obama highlighted Nevada’s renewable energy sector today with a visit to the heat-to-energy company ElectraTherm, in northern Nevada.

In front of a backdrop of “green machines,” Obama touted plans to end $4 billion in subsidies for oil companies in favor of providing incentives for renewable energy companies.

“Instead of subsidizing yesterday’s energy sources, let’s invest in tomorrow’s,” Obama said. “I want companies like Electra Therm to set up shop in America, and hire American workers, and build American products.”

The investor-funded company is the type of firm Nevada business groups and government entities have been trying to incubate in Nevada. ElectraTherm has benefited from grants from the federal Department of Energy.

President Barack Obama speaks in Reno at ElectraTherm, a renewable energy plant, about energy, the economy and the federal budget on April 21, 2011/PHOTO: Andrew Doughman, Nevada News Bureau.

The company is in the district of Sen. Ben Kieckhefer, R-Reno.

“I appreciate him coming to this company in my district,” Kieckhefer said, adding that he appreciates that the president would highlight Nevada’s role as an emerging energy provider. “Renewable energy and economic development are not partisan issues.”

Gov. Brian Sandoval has said promoting renewable energy should be a focus for Nevada. The state’s close proximity to California, with its requirements for greater amounts of its energy coming from renewable energy sources, and its low tax base are two advantages Nevada already has.

State Sen. Majority Leader Steve Horsford, D-Las Vegas, said the president’s visit highlights Nevada’s national role in the emerging energies like wind, solar and geothermal.

“I think that the president selected a company like this to spotlight shows how much we are open to new businesses and new industry like this coming to our region,” he said, adding that state legislators from both parties are eager to move bills that could further foster growth in the renewable energy sector in Nevada.

Groups such the Nevada Institute for Renewable Energy Commercialization already work with investors and universities to help create renewable energy start-ups. The potential future employees for such companies, Truckee Meadows Community College students, were among the 425 guests at the invite-only speech.

“I want to make sure that we are also the frontrunners, the leaders when it comes to solar, when it comes to wind, when it comes to waste-heat, geothermal,” Obama said.

In the energy debate, the president largely ignored the proposed Yucca Mountain nuclear repository. He acknowledged that the idea was contentious, but did not share his opinions about it. The president had, however, earlier withdrawn funds for Yucca Mountain in his budget.

During the hour-long speech the president also highlighted key Democratic talking points. He defended his signature health care reform law and addressed the recent federal budget imbroglio by advocating a “balanced” approach with some spending cuts and tax increases on the wealthiest 2 percent of Americans.

He also addressed the proposed cuts to Nevada’s economy.

“I understand that here in Nevada the economy has been slowest to recover because this was also where the housing boom was hottest,” Obama said.

Echoing state Democratic leaders, Obama said that Nevada will have to make “tough choices” but at the same time cannot eviscerate its education system along the way.

“Ultimately we’ve got to make sure that we’re not cutting education unnecessarily,” he said. “In some cases, revenue is going to be necessary.”

President Barack Obama highlighted the nation

Obama’s visit to Reno is part of a larger U.S. tour to sell the president’s budget plan, which runs counter to the plan House Republicans have advanced.

Many Democratic state legislators attended the event, as did all of the state’s constitutional officers except for Sandoval, who greeted Obama as he exited Air Force One but did not stay for the speech because of a prior engagement.

Reno Mayor Bob Cashell and Rep. Shelley Berkley, D-Nev., also attended.

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CORRECTION: Amodei Still Mulling Run

By Elizabeth Crum | 7:38 am April 21st, 2011

The original headline of this post was “Amodei Announces Run for Heller’s Seat.” It was supported by a Las Vegas Review Journal story by political reporter Laura Myers. However, Mark Amodei told Jon Ralston he has NOT made nor announced a decision. From Ralston’s blog:

Despite a report to the contrary, state GOP Chairman Mark Amodei says he has not announced his candidacy for Rep. Dean Heller’s seat. “I did not announce anything,” Amodei told me, referring to a report this morning in the Las Vegas Review-Journal. “I need some things to fall in place. If they don’t, Mark Amodei will not enter the race. If I can get the right organizational pieces in place, I’m in.”

Amodei obviously was not pleased with the newspaper story and even went to the length of calling Lt. Gov. Brian Krolicki, also considering a bid, to assure him he had not announced anything, he told me. He also talked to state Sen. Greg Brower, also known to be mulling a run for Heller’s seat. Despite what the newspaper said – that Brower told Amodei he is in – Amodei said Brower only told him he is seriously considering the race and doing his due diligence, too. Brower also informed me this morning that he has not made a decision.

Amodei candidly told me he learned the lesson of what he wryly called his “six-month foray” into the 2010 Senate race, which he dropped out of after getting little traction. “I am not going to do what I did in the Senate race,” Amodei said.

I asked Amodei if he had been contacted by Gov. Brian Sandoval to try to dissuade him from running because of GOP fears that too many candidates in the contest might hand the nomination to Sharron Angle, who might lose to the Democratic nominee. Ex-USS Cole Commander Kirk Lipoid also has announced his candidacy.

Amodei said no one had called him to try to keep him out of the race, but he expressed frustration with people “sitting back and writing their hands” rather than coalescing behind one GOP hopeful. He pointed out that “this is not the district of Barbara Vucanovich and Jim Gibbons,” a reference to the first two occupants of the seat who had an overwhelmingly safe GOP district. Amodei suggested that after reapportionment the district will be less a sure thing for the GOP than it has been and that the imperative for a unified GOP front is even greater. He pointed out Heller’s loss in Washoe County to Democratic nominee Jill Derby four years ago.

Finally, Amodei essentially told me nothing has been decided about his stepping down as chairman, that he won’t make that decision until he decides on whether to run.

Which, clearly, he has not done.

My original blog post is below.

The current chairman of the state Republican party, Mark Amodei, told the LVRJ he is going to run for Nevada’s second congressional seat. If he files, he will join Sharron Angle and Cmdr. Kirk Lippold in a GOP primary that will likely see a couple-few more contenders before all is said and done.

Amodei said he is likely to file in May and will attempt to raise $100,000 in the next cycle, a mere pittance compared to the $710,000 Sharron Angle raised in the first quarter. Angle’s fundraising machine will make her a tough competitor in the race despite her high negatives with the base (as reported by Ralston, who got a peek at some March polls). And Amodei’s candidacy will help her because in a multi-way field, the more the merrier–for Angle.

State Senator Greg Brower looks like a strong maybe, and Lt. Gov. Brian Krolicki has said he’ll wait until after the legislative session to announce his plans. If both of them run, we’ll have a thrilling 5-contestant game show to watch next season.

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Nevada Rep. Berkley Stresses Education, Alternative Energy In Remarks To Lawmakers

By Sean Whaley | 8:19 pm April 20th, 2011

CARSON CITY – Recently announced U.S. Senate candidate Shelley Berkley spoke to the Nevada Legislature today, stressing education, infrastructure and energy independence as ways to create jobs and get the state back on track.

Berkley, D-Nev., who has served in the House of Representatives from Congressional District 1 in Southern Nevada since 1999, delivered her remarks in the Assembly in front of lawmakers, Gov. Brian Sandoval and the other constitutional officers, and the members of the Nevada Supreme Court.

Berkley’s visit to the Legislative Building comes just days after her announcement that she will run for the Senate seat being vacated by John Ensign, R-Nev. Berkley will likely be facing fellow Rep. Dean Heller, R-Nev., in the 2012 race.

The upcoming Senate race did not come up in her remarks, which focused on how to get Nevadans back to work.

Rep. Shelley Berkley, D-Nev., addresses the Legislature today/Photo: Andrew Doughman, Nevada News Bureau

Education is a key to this effort, Berkley said.

“Businesses coming to Nevada need and want a well educated and well-trained workforce, and they are not going to come here if we don’t deliver that,” she said.

In perhaps her most pointed remarks, Berkley acknowledged the sometimes acrimonious and partisan debate in the Assembly on Tuesday regarding Sandoval’s public education budget, saying “in my mind, gutting our education system is short-changing our children.”

Berkley said she was not leveling any criticism at the hard work of lawmakers in addressing public education funding in a time of scarce resources, but that failing to fund education is undermining Nevada’s ability to diversify its economy.

She also talked about the need to restore the country’s infrastructure as one way to create jobs, and the opportunities available in Nevada to develop alternative energy sources, which would not only provide economic benefits to the state but would help wean the country off its dependence on foreign oil as well.

“Energy independence in my mind is a national security imperative,” Berkley said. “It is incomprehensible to me that a superpower like the United States of America is so dependent on the Saudis and the Venezuelans and the Nigerians to have our energy needs met. These countries are not our friends.”

Berkley also said there is an effort under way in Washington, DC, to re-initiate the development of Yucca Mountain as a nuclear waste dump, which she said is unnecessary because of the ability to store the waste safely at the nuclear reactor sites. It is time to close the door on Yucca Mountain as a waste site, which would also save $100 billion in development costs, she said.

Berkley spoke out against a Republican proposal in Congress to replace Medicare with a voucher program, saying it would cost seniors, many of whom rely on social security to live, $6,000 in out-of-pocket health care costs.

In a brief meeting with the media after her remarks, she did say her race against Heller will present Nevada voters with a clear choice on policy issues including Medicare and Social Security.

The number one issue will be jobs, and Berkley said her position “is the correct one to move this nation and this state into the future.”

Audio clips:

Rep. Shelley Berkley says companies looking at coming to Nevada want an educated workforce:

042011Berkley1 :11 don’t deliver that.”

Berkley says failing to fund education will shortchange children and hurt economic diversification efforts:

042011Berkley2 :20 diversify our economy.”

Berkley says the U.S. has to end its dependence on foreign oil:

042011Berkley3 :19 not our friends.”

Berkley says it’s time to end Yucca Mountain once and for all:

042011Berkley4 :14 and for all.”

Full Berkley address to Legislature, part 1:

042011Berkley Address 1 8:15

Full Berkley address to Legislature, part 2:

042011Berkley address 2 4:58

Full Berkley address to Legislature, part 3:

042011Berkely address 3 7:07

Full Berkley address to Legislature, part 4:

042011Berkley address 4 5:45

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Senate Debate On Gov. Sandoval’s Public Schools Budget Sees No Vote, Fireworks

By Sean Whaley | 4:29 pm April 20th, 2011

CARSON CITY – The debate over Gov. Brian Sandoval’s proposed cuts to public education shifted to the state Senate today, with members of the upper house getting the details of the reductions that the Clark County schools chief said would mean the loss of $400 million for a 19 percent cut in funding.

But there was no effort by Democrats, who control the Senate with a narrow 11-10 advantage, to force a vote on the schools budget as occurred yesterday in a more contentious Assembly hearing. There were no fireworks either.

The Senate heard from a number of school officials talking about the effects of the cuts proposed in Sandoval’s budget, as well as a defense of the plan from Chief of Staff Heidi Gansert and Budget Director Andrew Clinger.

Sen. Steven Horsford watches as Sandoval Chief of Staff Heidi Gansert and Budget Director Andrew Clinger testify in the Senate today./Photo: Nevada News Bureau

State Budget Director Andrew Clinger and Chief of Staff Heidi Gansert testify in the Senate today as Sen. Steven Horsford watches./Photo: Nevada News Bureau

Clark schools chief Dwight Jones said that if the teachers union does not agree to benefit concessions the district is looking at layoffs of 2,500 to 3,000 employees. Class sizes would also likely increase, by three students in elementary grades and two students in the secondary grades, he said. The textbook and supplies budget would likely see a 50 percent cut as well.

Jones acknowledged, however, that the tough economic conditions facing the state have proved to be an impetus to make reforms to the delivery of education in the district.

Gansert reiterated the Sandoval position that new taxes are not an option for the upcoming two-year budget because of the need to let the economy recover and for Nevada businesses to begin adding jobs.

She noted that the most recent unemployment report for March showed job growth for the first time in 37 months.

Gansert also defended the use of more than $300 million in school district bond reserve funds to fund operating costs for schools, a controversial element of Sandoval’s spending plan for public education. The proposal was put forward to avoid even more severe cuts to public education, she said.

Senate Majority Leader Steven Horsford, D-Las Vegas, started the proceedings for the Committee of the Whole by saying bringing the details of the public education budget to the full Senate is critical to reaching a compromise on spending. He rejected a suggestion that the hearings are a “farce.”

Senate Majority Leader Steven Horsford presides over the Committee of the Whole discussion on public education today/Photo: Nevada News Bureau

“Some in the Legislature have characterized these Committee of the Whole proceedings as a dog and pony show or a farce intended to politically embarrass members of this body,” he said. “Nothing could be further from the truth. The Committee of the Whole in the Senate is about serious business of the state of Nevada that must be resolved.”

Horsford said he cannot accept the education cuts proposed in Sandoval’s two-year, $5.8 billion general fund budget, and that he is willing to compromise. There is no question that any budget approved by the Legislature will include severe cuts to all areas of spending, he said.

“I am prepared to stay here as long as it takes, but I would prefer that we meet our constitutional deadline of passing a budget by June 6,” Horsford said. “That means we must begin working together now to find the common ground and compromises that will allow that to happen.”

In a briefing after the administration presentation, Gansert and Dale Erquiaga, senior adviser to Sandoval, reiterated the governor’s positions on the education budget and taxes.

“We were very careful in putting this budget together, we believe it is sound and it is reasonable,” Gansert said. “We made extra efforts to mitigate the cuts or make them as small as possible to education because that is a priority of the governor’s.”

Erquiaga said that while the administration is interested in reforms sought by Assembly Republicans in such areas as collective bargaining and the prevailing wage, that those issues must be considered on their own merits.

“He certainly welcomes a conversation about reforms, but we need to have a conversation about reforms in this state based on the merits of that proposal, not horse trading,” he said.

The actual level of funding remains a point of contention between Democrats in the Legislature and the Sandoval administration. Democrats say some elements of the proposal are budget cuts, with the governor’s staff disagreeing with the characterization.

Information prepared by legislative fiscal staff provided to lawmakers shows more than $1 billion proposed “major reductions” to school districts. These numbers come from a variety of sources:

  • $600 million from freezing teachers’ pay increases, reducing salaries by 5 percent and making teachers contribute more to their retirement plans.
  • $238 million from the governor’s direct reductions to state support for public schools.
  • $221 million of room tax money continues to shift from supporting schools to the state general fund, as it does in the current budget.

The Senate hearing was more subdued that the marathon session in the Assembly that lasted more than six hours Tuesday. The Assembly session deteriorated later in the evening with accusations and complaints levied by members of the lower house at each other.

In the end, Republicans and Democrats remained firmly entrenched in their positions, with the 16 GOP members supporting Sandoval’s budget recommendations and the 26 Democrats seeking some compromise that would require some form of as yet unidentified tax increase.

The Legislature is scheduled to adjourn on June 6.

Audio clips:

Senate Majority Leader Steven Horsford says Committee of the Whole meetings are way to find compromise on budget:

042011Horsford1 :26 must be resolved.”

Horsford says budget compromise will require acting like adults:

042011Horsford2 :29 and trying circumstances.”

Horsford says he will stay in Carson City as long as it takes to find compromise on public school funding:

042011Horsford3 :19 that to happen.”

Clark County schools chief Dwight Jones says Sandoval’s budget means a 19 percent cut:

042011Jones :24 about our work.”

Sandoval Chief of Staff Heidi Gansert says every effort was made to minimize cuts to public education;

042011Gansert :13 of the governor’s.”

Sandoval Senior Adviser Dale Erquiaga says a discussion of reforms is welcome, but not as a trade off for tax hikes:

042011Erquiaga :15 not horse trading.”

 

 

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