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New Report Projects Debt-driven Tipping Points for Nevada and the States

By Anne Knowles | 11:27 am August 22nd, 2011

A new report on the financial outlook for the nation’s states says Nevada could reach a debt-driven “tipping point” in 2034.

The Fiscal Health of the U.S. States, a report by Jeffrey Miron with the Mercatus Center at George Mason University, says a more sober assessment of states’ pension funds liabilities as well as projected growth in health care costs show that all states are in worse fiscal shape than generally believed.

Part of the issue is that officially reported pension liabilities assume a certain interest rate when discounting future payouts (typically, about 8 percent, the historical return on stocks), but this is a “risky” and “problematic” approach, according to Miron.

“The pension obligations of state and local governments, the future payouts owed to those already collecting pensions, and the future payouts to those not yet retired but contributing are certain in the sense that state and local governments have legal obligations to make these payments,” he says.

“Standard financial economics holds that non-risky future payments should be discounted at a non-risky interest rate, which is much lower than 8 percent. A lower interest rate makes the appropriate present values larger,” Miron concludes.

The result of faulty projections will be $1.3 trillion more in total state liabilities than is commonly believed, according to Miron.

Miron says all states could reach debt ratios exceeding 90 percent – the so-called “tipping point” – sometime this century. Alabama, Kentucky, Michigan and South Carolina could be the first, starting in 2023, and others, such as Alaska, wouldn’t reach the tipping point until 2068.

Nevada’s current debt ratio, using a formula based on a lower discount rate for its pension liabilities, is 16 percent.

The report says rising health care costs, though, are an even bigger problem for the states than pension obligations.

The report cites rising Medicaid costs as the primary cause of skyrocketing costs, although it doesn’t provide projections. The report suggests changing the way states receive funding from the federal government for the program.

“One possibility is converting Medicaid into block grants to states, with each state having substantial leeway to determine exactly who and what is covered under the state plan,” the report says.

For the block grant approach to make a difference, though, the formula for adjusting it over time would have to limit the rate of increase relative to the past several decades. In the short term, such a change could mean less care is available for state Medicaid beneficiaries, the report acknowledges.

The report also cites the new health care exchanges established under the Patient Protection and Affordable Care Act as a contributing factor to rising costs, although states can presently receive federal assistance to either set up the exchange or opt out, requiring the federal government to implement it.

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Senator Roberson’s Majority PAC Debut a Veritable NV GOP Who’s Who

By Elizabeth Crum | 2:07 pm August 21st, 2011

Behold the long list of Host-supporters at the Republican Senate Majority PAC’s kick-off event in Tivoli Village next month. Host contributions are $5,000 so by my math, funds raised will be at least $35,000.

Senator Mike Roberson organized the event and is heading up the GOP effort to raise money and retake the Nevada Senate next year. The Democrats currently have an 11-10 majority, but 10 senate seats will be open come November of 2012.

Some say the role nicely positions Roberson to lead the Republican Senate caucus and if his efforts are successful, possibly the Senate itself.

In June, Senate Minority Leader Mike McGinness chose Roberson over veteran state Sen. Barbara Cegavske, who many expected would lead the caucus.

Roberson has said he will work hard to raise money and recruit candidates and that he is “confident” Republicans can win the upper house. He also denies there is any bad blood between he and Cegavske, insisting the two are “on the same page” with what needs to happen over the next 15 months.

In a memorable moment on the senate floor during the 2011 legislative session, Sen. Mike Schneider called Roberson the “rookie from Green Valley” as he criticized him for signing a pledge not to raise taxes.

Looks like the rookie is making a play for permanent pro status, while both parties wait to see how the new Senate districts are drawn.

Roberson has already proven he can raise money and run successful campaigns. During his own 2010 election, Roberson raised $380,000 to unseat incumbent Democrat Joyce Woodhouse.

Another key player in the GOP effort is Sen. James Settelmeyer, whose campaign gave $1o,ooo to Roberson’s campaign at a crucial time last year. Some have floated Settlemeyer’s name for a possible leadership position, but he has so far been non-committal about his interest.

 

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In Case You Missed It: Political Blurbs

By Elizabeth Crum | 11:52 am August 20th, 2011

Welcome to a new weekend feature here on the blog. We’ll bring you recent links, snippets, stories and Tweets you may have missed in Nevada and national politics. Enjoy. Feel free to post your own favorites in Comments.

Presidential Primary

Governor Sandoval’s name keeps popping up in stories about possible vice-presidential picks for the Republican ticket. This week Politico listed him among “the geographically and demographically ideal” along with Mark Rubio and New Mexico Gov. Susana Martinez.

This “270 to Win” interactive electoral map is fun to play with.

GOP presidential contenders are seeking Nevada endorsements. So far, Rep. Joe Heck, Lt. Gov. Brian Krolicki and nine state legislators have given Romney their nod.

CD-2 Special Election

The four candidates debated this week in Reno.

John Boehner hearts Mark Amodei. Really. And so does Mitt Romney.

Emily’s List (now over 900,000 members strong) endorsed Kate Marshall. So did the Alliance for Retired Americans.

The federal healthcare overhaul legislation is at issue on the airwaves. Amodei is linking Kate Marshall to the health care law approved by President Barack Obama and Congress, while Marshall released an ad slamming Amodei for supporting a Republican plan to privatize Medicare.

Republicans blame Marshall for Nevada’s credit rating downgrade.

AD does a fact check on the NRCC’s claim that Marshall was responsible for a huge business tax increase.

Kate Marshall chimed in (sorta) on Carson City District Judge James Todd Russell’s failure to disclose his business relationship with Mark Amodei in the special election case.

Marshall pointed out that she has raised more money than Amodei.

Americans for Prosperity commissioned a Magellan robo-poll. The survey says Amodei is up by 13 points.

Mediscare

Duck! Political canons are being fired every five minutes re: which party (or candidate) wants to kill Medicare. The latest:

– The national parties both try to control the Medicare message in the CD-2 special election race.

– Case and point:  The National Republican Congressional Committee TV ad attacking state Treasurer Kate Marshall.

– The Kate Marshall campaign responded with this TV ad claiming Mark Amodei wants to end Medicare.

– Mark Amodei’s mom defends him on the issue in this new TV ad.

Ever wonder what the truth is about rising Medicare costs? A Columbia Journalism Review reporter gives us an overview of a new Annals of Emergency Medicine report that explains.

Politifact evaluated DCCC claims that certain Republicans have voted to end Medicare.

Heller & Berkley

Medicare is an issue in this race, too.

In a June (internal) poll, Berkley was up 42-37 over Heller. The last PPP poll had Heller up over Berkley 46-43 (but within the margin of error). Most pundits are calling it a toss-up or giving a slight edge to Heller with disclaimers that it is too soon to say.

Both candidates seek the support of Nevada’s veterans who make up roughly 10 percent of the state’s population.

Dean Heller has gathered some D support for his call for debt committee transparency.

 

Education

The Clark County School District and the teachers union have reached a bargaining impasse that is “unlikely to be resolved” by Aug. 29, the first day of school.

State superintendent of schools Keith Rheault said Nevada will seek exemption from the No Child Left Behind Act after comments in which U.S. Secretary of Education Arne Duncan called the program an “impediment” and “disincentive” for educators. States can ask for relief beginning in September.

Various & Sundry

A Nevada judge fined the now defunct ACORN $5,000 for a voter-registration compensation scheme. The field operative who created and ran the incentive program is serving three years of probation. (I had fun blogging about the FBI raid on the Las Vegas ACORN office back in 2008.)

The Clark County Commission decided against packing electoral districts with minorities. The same issue is at the center of disagreements over state legislative and congressional redistricting.

Lorne Malkiewich, the longtime director of the Legislative Counsel Bureau, says he is going to retire before the beginning of the 2013 session.

Your 401(k) may in the tank, but Nevada mining company shareholders are doing well.

After push-back via recent public comment, the BLM says it is now going to evaluate the cost-benefits of that controversial pipeline project.

 

 

 

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BLM to analyze water pipeline cost after public opposition to project

By Anne Knowles | 3:22 pm August 19th, 2011

SPARKS — The Bureau of Land Management (BLM) now plans to consider not only the environmental impact but also the economic viability of Southern Nevada Water Authority’s (SNWA) multi-billion dollar plan to pump water from central Nevada into Las Vegas.

In an unusual move, the BLM will do its own economic analysis of the pipeline project and include the results in its final environmental impact statement (EIS) scheduled to be released sometime next year.

“There is quite a bit of interest in doing an analysis of the feasibility of the project, the economic feasibility, which BLM doesn’t usually do in its NEPA documents, but in this case I think we should,” said Penny Woods, project manager, BLM Nevada Groundwater Projects, at the final public meeting to discuss the project’s EIS. “We’ll probably figure out what we need and ask SNWA for the data.”

NEPA stands for National Environmental Policy Act, the law requiring the BLM do a study such as an EIS on major projects.

The BLM decided to add the economic critique in response to an outpouring of opposition to the project during a series of nine public meetings the federal agency held this month.

Critics of the water importation project have long questioned whether the pipeline, estimated by SNWA to cost $3.5 billion, is worth its price tag, especially in the current economy.

“We think $3.5 billion is just the tip of the iceberg,” said Susan Lynn, executive director of Public Resource Associates in Reno and a member of the board of directors at Great Basin Water Network, a coalition of about 40 groups working together to stop the project.

While Lynn is gratified the BLM is looking into the dollars and sense of the project, she’s concerned it may be moot.

“It will be too late to comment on,” said Lynn. “We usually only have 30 days (to comment after the final EIS), then they issue a record of decision and the record of decision is final, and you have the right to appeal.”

Once the BLM publishes its final EIS, the BLM state director, Amy Lueders, is required to consult with the U.S. Fish & Wildlife Service, and deliver a so-called record of decision on the project, no earlier than 30 days after the final EIS becomes available. She may also consult with the BLM state director in Utah before making the decision because the project involves Snake Valley, which is located in both Nevada and Utah, said Woods.

The decision could also be made at a higher level – by the Assistant Secretary of the Department of the Interior – if it looks like it may be challenged in court.

The BLM’s decision is whether to grant SNWA the rights-of-way (ROW) on federal lands needed to build the 300-mile pipeline.

The series of public meetings BLM hosted on the project concluded yesterday with a three-hour gathering in the sweltering gymnasium of Sparks High School. Earlier meetings were held throughout the area where the planned pipeline would be built, as well as in Elko, Salt Lake City, and Henderson, which boasted the largest crowd of 140 attendees.

About 30 people sat in the audience while more than a dozen people spoke in opposition to the project during the public comment portion of the Sparks meeting.

Several speakers asked questions about the need for the project in light of the economic downturn.

“One in three homes in Las Vegas are in foreclosure,” said Jan Gilbert, a Washoe Valley resident and Northern Nevada Coordinator of the Progressive Leadership Alliance of Nevada. “The question arises, what are we doing? People are leaving the state, not coming to it. Who is going to pay for it? Is everyone in the state going to pay for it?”

According to Jeff Hardcastle, the state demographer, population growth in the state has been flat since 2007, when there was a decline after decades of growth. He said a forecast by Moody’s Analytics projects a strong rebound in gaming, tourism and construction after 2013.

“I think they’re overly optimistic,” said Hardcastle. “If you look at other scenarios, it’s almost no growth or flat.”

“We don’t believe the (estimated) costs are anywhere near what it will cost,” said Frank Whitman with the Lander County Public Land Use Advisory Commission. “Once you’re in for a penny, you’re in for a pound. And we’re worried it opens the door to taking water from other counties.”

Others who attended the meeting talked about the impact to the environment, including the caves of the Great Basin National Park, which don’t get talked about as much as the wildlife and range lands.

Jim Patera, a spelunker from Washoe Valley, said he became alarmed by the final sentence in the EIS’ executive summary, which reads, “Concern has been voiced by National Park Service, U.S. Fish and Wildlife Service, local counties and others about the impacts to water-dependent resources of interest from the proposed groundwater withdrawals associated with the project.”

Patera said he contacted the BLM to request any documentation relating to those voiced concerns.

“When I asked BLM, I was told they were confidential and could not be made public,” said Patera, who has filed a Freedom of Information Act (FOIA) request to gain access to the documents.

BLM’s Woods, after the meeting, said the park service and others were replying to what she called precursor documents and that their concerns were incorporated in the draft EIS elsewhere. She also said their comments were not in a form of documentation releasable under the FOIA.

Next month the pipeline will be subject to even more public scrutiny when the state engineer begins hearings on SNWA’s application for water rights of up to 80,000 acre-feet of water in Spring, Cave, Dry Lake and Delamar valleys. The hearings, beginning Sept. 26, are a rehearing of previously granted water rights that were overturned by the Nevada Supreme Court.

___

Audio clips

BLM”s Penny Woods says the agency will look at the project’s costs:

081811Woods1 :20 think we should.”

Scott Carone of the Northern Nevada chapter of Safari Club International worries the project will destroy wildlife:

081811Carone1 :13 some of it.”

Dennis Ghighieri of the Toiyabe Chapter of the Sierra Club says the pipeline would alter the landscape:

081811Ghighieri1 :15 a huge portion.”

 

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Jeff Mohlenkamp Already Tackling Challenges As Nevada’s New Budget Director

By Sean Whaley | 9:21 am August 19th, 2011

CARSON CITY – When Jeff Mohlenkamp decided to accept the job as Nevada’s newest budget director, he knew going in it was going to be a challenge.

The state’s economic slump continues to be a drag on funding government services, although gaming and sales tax revenues have shown some improvement in recent months.

The Department of Administration, which Mohlenkamp oversees as a significant part of his duties, is in the midst of a major merger, with the former Departments of Personnel and Information Technology coming under the agency’s umbrella.

And Mohlenkamp, who has the job of preparing the governor’s budget every two years for submission to the Nevada Legislature, will now be required to use a radically different process, called performance-based budgeting, to prepare the governor’s spending plan.

But after five weeks on the job, Mohlenkamp, 48, who has a varied background in state service dating back to 1986, is enjoying the challenge offered to him by Gov. Brian Sandoval, who named him to the position in June. Former budget director Andrew Clinger left following the end of the 2011 legislative session to become Reno city manager.

Mohlenkamp said his background and experience appeared to fit the bill for Sandoval.

“It’s a daunting task in some regards but I find it to be very exciting,” he said. “The challenges are many. It’s working right with the governor and his staff to achieve some of the over-arching goals of the state.”

Jeff Mohlenkamp, Nevada's new budget director. / Photo: Sean Whaley, Nevada News Bureau.

While times are tough, it is those very challenges that can push those in charge to step up and think critically about delivering state services in the most effective way, he said. But that process should be happening in good times as well.

“Sometimes tough times force us to modify the way we do business and look carefully at the way we do business, but it really is something we should be doing not only in difficult times but all the time,” Mohlenkamp said.

The state should be well served by the Legislature’s approval of a measure requiring performance-based budgeting, he said. The new process, also called priorities-based or activities-based budgeting, was partially implemented in the 2011 session by Clinger at the request of former Gov. Jim Gibbons.

Historically state agencies have just “rolled up” their program costs, based on increased caseloads and inflation, in preparing new budgets every two years. Programs were not regularly analyzed to determine if they were still needed.

“I think the ultimate goal, whatever terminology is used, is to move towards a different way of looking at state government and the functions it performs,” Mohlenkamp said. “And trying to evaluate what functions or activities government needs to be engaged in, and the relative value of those activities and those functions. It means looking at budgets through a different lens.”

The merger of the various former departments and agencies into the Department of Administration is a major challenge, but much of the work was already under way when he arrived on the job July 11, he said.

Bringing all the services the state provides to other agencies – from personnel needs to information technology – into one central agency, will provide the opportunity to improve services to the many different departments and divisions statewide, Mohlenkamp said.

“Looking at how we can better serve our customers is going to be one of my primary focuses,” he said.

Mohlenkamp’s career in state service began shortly after graduating from the University of Nevada, Reno, in 1986, with a degree in accounting and business management. He went to work for the Gaming Control Board, serving in different positions, including several years as a supervising investigator for the Corporate Securities Division. In this position he reviewed such major publicly held companies as Bally’s and IGT.

After 17 years with gaming, he went to work for the state Division of Internal Audits in 2003, doing performance based reviews of a variety of agencies, including many in the Department of Health and Human Services. From there he worked as the administrative services officer for the Division of Mental Health and Developmental Services, first working under former administrator Carlos Brandenburg, who Mohlenkamp cited as a mentor.

Brandenburg said he was fortunate to have Mohlenkamp as his ASO.

“What separated him from the previous ASOs that worked for me is that a lot of the ASOs strictly crunched the numbers,” he said. “Jeff separated himself because he not only crunched the numbers, and he was very, very good at that, but he also wanted to understand services.

“I knew for a fact that the governor was going to get himself a great, hardworking person,” Brandenburg said. “A person that looks at the numbers, and crunches the numbers, but he also tries to understand the service part of the system.

“What he tells you you can take to the bank,” he said.

Mohlenkamp then moved to the Department of Corrections, where he served as a deputy director of support services, overseeing inmate services, and legislative and financial matters.

Both with mental health and corrections, Mohlenkamp spent a lot of time at the Legislature testifying on budgets, experience that will no doubt serve him well when he has to present Sandoval’s next budget in 2013.

Mohlenkamp said he considers himself a straight shooter, giving lawmakers the information they need to make decisions.

“My goal is to answer straight questions with straight answers,” he said. “The legislative process isn’t always fun, but it’s always interesting.”

Sandoval said Mohlenkamp had the qualities he was looking for in a budget director.

“Jeff is somebody that I’ve known who has served the state with distinction for many, many years,” Sandoval said. “I first met him when he was at gaming when I was on the Gaming Commission. He has also worked at Health and Human Services, he’s worked at prisons, he has testified in front of the Legislature, he has a tremendous amount of experience with budgets, he is very proud of his state and very committed. And so all those attributes were what I was looking for in terms of a budget director.”

“Obviously Andrew Clinger is going to be somebody who is difficult to replace, but Jeff has already dived straight into the job and is doing a great, great service for the people of Nevada,” he said.

When he isn’t putting in long hours in his new job, Mohlenkamp said he likes to sail, scuba dive and spend time with his two children.

–

Audio clips:

New state Budget Director Jeff Mohlenkamp says performance-based budgeting will require a new type of analysis:

081811Mohlenkamp1 :26 and those functions.”

Mohlenkamp says state agencies should be evaluating their programs in good times as well as bad:

081911Mohlenkamp2 :13 all the time.”

Mohlenkamp says his new job is daunting but exciting:

081911Mohlenkamp3 :23 of their careers.”

Former MHDS Administrator Carlos Brandenburg says Mohlenkamp did not just crunch the numbers:

081911Brandenburg1 :20 to understand services.”

Brandenburg says Sandoval recruited a great budget director:

081911Brandenburg2 :15 of the system.”

Gov. Brian Sandoval says Mohlenkamp has served the state with distinction for many years:

081911Sandoval1 :26 a budget director.”

Sandoval says Mohlenkamp has dived right into the job:

081911Sandoval2 :11 people of Nevada.”

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Nevada Legislative Representatives Are No Shows At Homeland Security Commission Meetings

By Sean Whaley | 4:20 pm August 18th, 2011

CARSON CITY – The Nevada Legislature’s representatives at the state Homeland Security Commission meetings have been no shows this year, and the lack of participation is being cited as a concern by members of the panel, including Gov. Brian Sandoval.

The commission met Wednesday and Bob Fisher, president and CEO of the Nevada Broadcasters Association and a member of the commission, said the failure of legislative leaders to either attend or send alternates to the meeting is a concern.

His concern was echoed by Sandoval, who is now serving as the chairman of the commission.

Assembly Speaker John Oceguera, D-Las Vegas, is listed as a nonvoting member of the panel but he did not attend the meeting.

Fisher said the Senate majority leadership has not yet selected a representative to serve on the commission.

Nevada state law says the Senate majority leader and Assembly speaker are to appoint one non-voting member each.

Sandoval appoints the 14 voting members of the commission.

The previous representative from the Senate was former Sen. Dennis Nolan, R-Las Vegas, who attended many of the commission meetings during his tenure.

According to minutes of the commission meetings and workshops, Oceguera attended one of 14 meetings since Jan. 2009, in June of 2009. No member of the Senate has attended a meeting this year.

Senate Majority Leader Steven Horsford, D-Las Vegas, could not be reached for comment.

In response to the concerns, Oceguera said that as a non-voting member, his presence is not required at every meeting of the commission.

“That being said, I am in constant contact with members of the committee and I’m fully briefed on the committee’s important work,” he said. “Further, as an assistant fire chief, my job entails dealing with homeland security issues on a daily basis.”

Oceguera said that with his time in the Legislature coming to an end, he is in the process of appointing a new Assembly representative to the commission.

Fisher said that if legislative leaders cannot attend, then maybe they could designate alternates to represent the Legislature at the meetings.

Bob Fisher, president and CEO of the Nevada Broadcasters Association and member of the Nevada Homeland Security Commission.

Fisher said the failure of lawmakers to attend the meetings has been raised as a concern at previous meetings as well.

“I think it is a concern because look at the meeting today,” he said. “There is so much that has been covered.”

Earlier in the meeting on a separate agenda item, Fisher said a majority of the Legislature does not know what the Nevada Homeland Security Commission does. The comment came during a discussion about the need to get increased federal funding for Nevada’s anti-terrorism efforts.

Fisher said the commission will approach the Legislature in 2013 on various issues, and having members who attend the meetings and who are up to speed on those issues would be beneficial.

Sandoval agreed that legislative participation is important.

If legislative leaders cannot attend, possibly they could designate alternates, he said.

“I couldn’t agree more,” Sandoval said.

In an interview today, Fisher put the blame for the failure to educate the Legislature on the activities of the commission on the panel itself, not lawmakers.

“I think over the years we’ve done a very, very poor job, or we haven’t done a good enough job, in helping to educate the public, let alone the legislators, on: This is the Homeland Security Commission, this is what we do, this is what we’re trying to achieve, this is what we’re working (on) to make all of Nevada safer,” he said.

This is why it is important to have legislators attend the meetings, Fisher said.

The effort to get changes to state law on behalf of the commission in the 2011 session was a challenge, but it was the fault of the commission, not the Legislature, he said.

“It is a failure of the commission to communicate adequately,” Fisher said.

This will likely change with Sandoval deciding to serve personally as chairman of the commission, he said.

“Having Gov. Sandoval as the chairman of the Homeland Security Commission is the best thing to happen to homeland security in the state of Nevada,” Fisher said.

Past governors have designated others to serve on the panel on their behalf.

The meeting was the last for the panel before the 10th anniversary of the Sept. 11, 2001 terrorist attacks.

Kevin Favreau, special agent in charge, FBI Las Vegas, and a non-voting member of the panel, said that as the somber anniversary approaches, the commission has over the years created a system to keep Nevada safe.

He acknowledged the country is going into a period of heightened concern with the approach of the anniversary, but gave an optimistic assessment of Nevada’s readiness.

“Our director and others in our national security structure are very concerned about it because of the tape that was taken from when Osama bin Laden was killed, as it being a significant date, and also because of the potential for copycats or lone offenders, as we heard from Mr. Fisher; Mumbai-style attacks,” he said.

“But should anything happen, I’m confident that Metro and others in the northern part of the state are very ready to be able to respond, and of course we hope that doesn’t happen,” Favreau said. “But from a preventative aspect this commission has helped this state to be as ready as we can be to try to prevent it.”

–

Audio clips:

Commission member Bob Fisher says most members of the Legislature doesn’t know what the commission does:

081811Fisher1 :28 is responsible for.”

Fisher says the Wednesday meeting covered a range of important topics:

081811Fisher2 :05 has been covered.”

Fisher says the commission bears the responsibility for failing to educate lawmakers on what the panel does:

081811Fisher3 :28 of Nevada safer.”

Kevin Favreau, special agent in charge, FBI Las Vegas, says the upcoming anniversary of 9-11 is cause for concern:

081811Favreau1 :24 Mumbai-style attacks.”

Favreau says the work of the commission has ensured Nevada is ready to respond if need be:

081811Favreau2 :18 to prevent it.”

 

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Differences Between Major Party Candidates In CD2 Race On Display At Reno Debate

By Sean Whaley | 10:54 pm August 17th, 2011

RENO – The two major party candidates running in the 2nd Congressional District special election to replace Dean Heller stuck to their talking points in a tame hour-long debate here today.

But the verbal jousting in front of about 150 people at the California Building in Idlewild Park still managed to illustrate the contrasts between Republican Mark Amodei and Democrat Kate Marshall.

Marshall, the Nevada state Treasurer in the midst of her second term, said she would protect social security and Medicare while seeking to balance the federal budget. She also pointed to her successes as treasurer, making money on the state’s investments in every quarter she has been in office.

Nevada state Treasurer and Democrat CD2 candidate Kate Marshall. / Photo: Sean Whaley, Nevada News Bureau.

“There is only one candidate here who will protect your social security and Medicare, and that is me,” Marshall said.

Amodei,  a former state Senator who served in several sessions of the Legislature, said he is a candidate who does not think the federal government is too small, that there aren’t enough regulations and that there isn’t enough taxing and spending. Amodei said his legislative experience will allow him to tackle the tough issues facing the country the day after the Sept. 13 special election.

“I hope you take a look at who has worked for 24 years in the private sector to earn their living,” he said. “When you’re worried about unemployment, you’re worried about foreclosures, you’re worried about the economy, I think it’s a good thing to have somebody who comes from the private sector.”

Marshall touted her advocacy of Senate Bill 75 passed in the 2011 legislative session, which will allow the treasurer’s office to invest school funds in start-up businesses to create jobs, and criticized Amodei for proposing what she said would have been the largest tax increase in Nevada history as a lawmaker in 2003. The tax bill that was ultimately approved included a payroll tax, which means businesses that hire new employees pay more tax, she said.

“It’s no wonder our unemployment rate is the highest in the nation,” she said.

Amodei said his tax proposal was designed to head off the possibility of an income tax in Nevada. It was also intended to prevent a tax on gross receipts. Amodei also noted he opposed a $781 million tax increase in 2009.

Former Nevada state Sen. and CD2 GOP candidate Mark Amodei. / Photo: Sean Whaley, Nevada News Bureau.

Also participating in the hour-long debate were American Party candidate Tim Fasano and independent Helmuth Lehmann, both of whom argued that they were better choices than the establishment party candidates.

Fasano said the two major party candidates are “out of the same cloth” and voters who want change should vote for him on Sept. 13.

“I will stand for the rule of law,” he said.

The special election was made necessary when Gov. Brian Sandoval appointed former Rep. Dean Heller to the U.S. Senate to replace Sen. John Ensign, who resigned. The district encompasses 16 of Nevada’s 17 counties and part of Clark County.

The district has a more than 30,000 Republican voter edge, but there are also more than 60,000 independent voters.

–

Audio clips:

GOP candidate Mark Amodei says his 24 years of private sector experience are a big part of his qualifications for Congress:

081711Amodei :22 the private sector.”

Democrat candidate Kate Marshall says she will work to balance the budget while protecting social security and Medicare:

081711Marshall :32 and that’s me.”

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Democrat Congressional Candidate Oceguera Says He Will Face Off Against GOP Incumbent Heck In 2012 If Necessary

By Sean Whaley | 3:40 pm August 17th, 2011

CARSON CITY – Assembly Speaker and announced candidate for Congress John Oceguera acknowledged today that a number of Democrats are seeking seats in the House of Representatives in the 2012 election, and that hopefully any costly primary battles can be avoided.

Oceguera, who announced in July he will run as a Democrat for Congress despite the fact that lines for what will ultimately be four districts remain theoretical only, said a primary battle between two Democrats for one or more of the seats would not be beneficial.

While unlikely, a primary battle is a possibility and Oceguera said he is prepared for such a scenario. But a primary would not help any of the candidates, and hopefully could be avoided “in the spirit of cooperation,” he said.

Former Rep. Dina Titus, D-Nev., has announced she intends to run again for a seat in Congress. State Sen. John Lee, D-North Las Vegas, is also an announced candidate. State Senate Majority Leader Steven Horsford and state Sen. Ruben Kihuen, both D-Las Vegas, are also potential candidates for one of the seats.

Democrat Assembly Speaker John Oceguera.

Oceguera made his comments during an interview on the Nevada NewsMakers television program.

The district lines remain undecided because the Legislature failed to approve a redistricting plan based on the 2010 census that met with approval of both Democrats and Republicans. Two Democrat plans were vetoed by GOP Gov. Brian Sandoval. The issue is now in front of Carson District Judge James Todd Russell with no clear timetable on when it will be resolved. It will likely end up before the Nevada Supreme Court.

Oceguera said he does not know what district he will end up in, but that he may have to face Rep. Joe Heck, R-Nev., who represents the 3rd Congressional District. Heck is a freshman who defeated Titus in the 2010 election.

Oceguera, who lives near Heck in Clark County, said he is not concerned with the possibility of facing an incumbent in his congressional run. Oceguera, who is termed out of the state Assembly, is a North Las Vegas firefighter, attorney and fourth generation Nevadan, born in Fallon.

Heck’s district has elected both Republicans and Democrats, he said.

“Where ever I end up, as far as where the maps are drawn, is where I will run,” Oceguera said.

Ryan Erwin, a political consultant to Heck, said in response to Oceguera’s comments: “Commenting on every Democrat candidate looking for the title of Congressman would be a full time job.

“Dr. Heck has been spending his time helping constituents and trying to get the federal government out of the way of small businesses trying to create jobs,” he said. “The truth is, creating an environment that allows Nevada businesses to grow, invest and hire new employees is far more important to Joe Heck than who might run against him next year.”

Oceguera announced his intention to run in July, saying it would be too late to mount a competitive campaign if he waited until the redistricting issue is decided. While fundraising is difficult in such an uncertain situation, waiting until the 2012 filing period next spring is unworkable, he said.

Oceguera said it will take between $2 million and $3 million to run a competitive race, and that he expects to have about $250,000 by the first reporting period.

Oceguera said he is running on his legislative record, including job creation efforts in the 2011 session, and on his history of hard work and desire to seek compromise on issues facing the state.

“It is something we’re sorely missing in Washington, DC, right now,” he said.

Oceguera said he and his fellow lawmakers fulfilled their promises in the 2011 legislative session.

“We said we were going to cut – we did, we cut,” he said. “We said that we were going to reform – we did, we reformed. We said that we were going to balance our budget – we did, we balanced our budget. And we said we were going to end on time and we did that as well. So I think that is a pretty strong record in the last legislative session.

“I’ve been strong on education, I think I’ve been strong for business,” Oceguera said. “I don’t know that that’s all I will run on, but I think my legislative record is solid.”

–

Audio clips:

Congressional candidate John Oceguera says the Legislature fulfilled its promises in the 2011 session to balance the budget, cut spending and make reforms:

081711Oceguera1 :25 last legislative session.”

Oceguera says he is strong on education and for business:

081711Oceguera2 :09 record is solid.”

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Outlook partly sunny for Nevada retailers, says trade association

By Anne Knowles | 2:27 pm August 17th, 2011

With back-to-school buying stagnant but an uptick in sales expected this holiday season, the Retail Association of Nevada (RAN) is forecasting a mixed outlook for the state’s retailers.

In a brief report released today, RAN says a continued slump in the state’s economy coupled with ever increasing growth in online sales could continue to hamper retail sales through the end of the year.

“The outlook now is things are fuzzy, things are a little hectic, but we anticipate a strong consumer show for those holiday times,” said Bryan Wachter, director of government affairs at RAN in Las Vegas. “But that’s not to say there isn’t cause for pause. We’re definitely still seeing unemployment, we’re still seeing foreclosure rates. We are seeing uptick on the Strip, we’re seeing visitor volume increase, we’re seeing people come in on airplanes, McCarran visitor volume is up. So we’re going to be looking for those to start trickling into the local economy.”

In his report, Wachter cited several negative trends that could curtail spending for the next several years. Consumer debt has dropped from a peak in the third quarter of 2007, but Wachter said that improvement is misleading.

(But) the declines are heavily influenced by [1] the discharge of debt through bankruptcy and other forms of default and [2] payment ratios being artificially reduced by extended periods of record-low interest rates. Many Nevada consumers are underwater on their homes and are carrying substantial credit card debt; the systematic repayment of these obligations will inevitably cannibalize consumer spending for at least the next several years.

Wachter said that while interest rates are low now, and the Federal Reserve Bank has committed to keeping them low through next year, Standard & Poor’s recent downgrade of U.S. debt could bump rates up, putting a further damper on spending.

Consumer confidence could remain low and Nevada, stigmatized with the worst unemployment in the nation, may have difficulty attracting new business, says the report.

And the online marketplace is likely to continue to sap sales from brick-and-mortar stores. That’s in part because unlike other retailers, most internet-based merchants don’t collect sales tax, which in Clark County is 8 percent.

“Their products are eight percent cheaper just based off the ability to not have to collect tax,” said Wachter. “We think that’s unfair. It’s almost a government-mandated advantage for the online companies.”

On the bright side, Wachter said visitor volume jumped in the last 12 months by 3 percent, or by 1.3 million trips. Those visitors are spending less at casino tables but more on eating, drinking, shopping and entertainment.

Wachter projects pent-up demand for large ticket items such as cars and appliances, which consumers have been putting off buying for the last few years.

Also, Nevada’s population, based on increasing surrenders of out-of-state driving licenses to the Department of Motor Vehicles and a spike in school enrollments, is growing. Some of that growth comes from retirees, who could be a stable segment of the retail market, and from Hispanics, Asians and Pacific Islanders, who have been under-served by retailers in the past.

“That’s good and bad,” said Wachter. “That’s good for retailers who are able to adapt and move, and it’s unfortunate for retailers who can’t adapt.”

___

Audio clips

RAN’s Bryan Wachter says retailers tied to construction, such as furniture stores, may be in for a tougher time than other merchants:

081711Wachter1 :25 general merchandise stores.”

 

RAN’s Wachter says the upcoming holiday season and increased tourism is cause for cautious optimism among retailers:

081711Wachter2 :34 into local economy.”

 

 

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Nevada Attorney General Still Analyzing County Refund Requests Totaling $123 Million

By Sean Whaley | 2:23 pm August 16th, 2011

CARSON CITY – Attorney General Catherine Cortez Masto said today it will probably be another month before she can publicly report the results of her staff’s legal conclusions regarding requests for refunds from the state by Clark and Washoe counties totaling $123 million.

Masto said her office is still “moving through the process” to determine if any refunds are owed the two local governments. Once that analysis is completed, Masto said her legal findings will be shared privately with Gov. Brian Sandoval.

Following that discussion, the Board of Examiners, made up of Sandoval, Masto and Secretary of State Ross Miller, will be briefed on the findings at a public meeting. It would be up to this board to approve any refund requests.

“We’re moving through the process and within a month or so the public will have more information,” Masto said.

Attorney General Catherine Cortez Masto. / Nevada News Bureau file photo

Masto made her comments during an interview on the Nevada NewsMakers television program. Her comments closely mirrored those reported Monday by the Las Vegas Sun.

If it is determined the money should be returned, then a special session of the Legislature is one option to implementing a refund, Masto said.

“We’re working through that now and we’re looking at the various options that are out there if we are required to return the money,” she said. “Now, the mechanism for moving through that process we’re still working through. But that’s obviously an option. We’re not there yet. Right now we’re looking at the legal analysis to determine whether we even owe the money to the counties.”

The refunds were requested based on the Nevada Supreme Court ruling in May on the Clean Water Coalition case that found the Nevada Legislature improperly took $62 million in 2010 from the local government fund to balance the state budget.

The ruling threw into question several other revenue sources Sandoval had proposed using for his 2011-13 budget, and led to a compromise with Democrats in the Legislature that included the extension of several tax increases that had been set to expire June 30.

But as a result of the Supreme Court ruling, both Clark and Washoe counties have submitted claims to the Board of Examiners requesting refunds of property taxes taken in the 2007 and 2009 legislative sessions to help balance the state budget.

Washoe County is seeking $21.5 million. Clark County is seeking $102 million.

–

Audio clips:

Attorney General Catherine Cortez Masto says her office is still analyzing if the state owes the counties any refunds:

081611Masto1 :25 to the counties.”

Masto says the public should soon know more about the potential for a refund:

081611Masto2 :18 secretary of state.”

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Nevada’s First Lady Selected For Leadership Academy

By Sean Whaley | 10:35 am August 16th, 2011

CARSON CITY – Nevada’s First Lady Kathleen Sandoval is one of only 24 nonprofit leaders in the nation to be selected for the American Express Leadership Academy sponsored in collaboration with the Corporation for National and Community Service (CNCS) and the Center for Creative Leadership (CCL).

First Lady Kathleen Sandoval

The Academy, scheduled for Nov. 14 through 18 in Washington, DC, will focus on improving education outcomes for children and youth. Over 120 emerging nonprofit leaders from around the nation applied.

“It’s an honor to be selected for this program and be given the opportunity to bring home ideas focused on serving our state’s youth,” Sandoval said. “We will explore national service models and educational outcomes that can help us do more to address the challenges faced by Nevadans every single day.”

The First Lady was also recently named the Non-Profit Healthcare Hero in Northern Nevada by Nevada Business Magazine.

“I have always known that Kathleen is a leader in her field,” said Gov. Brian Sandoval. “The programs she administers in the nonprofit sector and much of her work as First Lady are focused on improving the lives of children.”

Sandoval is the Family Youth Intervention (FYI) Program Director at the Children’s Cabinet, a nonprofit organization that works closely with children and youth to reduce school truancy, evaluate mental health issues, prevent family violence, and support homeless, runaway and abused children. She is a trained speech pathologist with expertise in traumatic brain injury.

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$27.6 Million Contract Will Bring High Tech Kiosks To Grocery Stores For DMV Transactions

By Sean Whaley | 2:13 pm August 15th, 2011

CARSON CITY – The state Board of Examiners today approved a 10-year, $27.6 million contract to install kiosks in grocery stores statewide where Nevadans will be able to renew car registrations, extend drivers licenses and perform other tasks that might otherwise require a trip to a Department of Motor Vehicles office.

The contract with Intellectual Technology Inc. will be paid for by charging fees to those using the kiosks, $1 for all transactions but car registration renewal, which will run $3, said Bruce Breslow, director of the DMV. The state is currently paying the company $5 for each car registration renewal, but the amount users will pay was reduced in the new contract.

DMV chief Bruce Breslow explains a new kiosk contract to the Board of Examiners today. / Photo: Sean Whaley, Nevada News Bureau.

The purpose of the kiosks is to simplify DMV transactions for the public while at the same time reducing the need for staff to operate the state’s multiple DMV offices,  he said. DMV offices may close at 5 p.m., but a kiosk in a grocery store will be accessible 24 hours a day, Breslow said.

“Let’s say you live out in Summerlin,” he said. “By the time you get in your car, take the freeway, find the DMV office, wait in line at the DMV, get back in your car and negotiate the traffic to get back there, that’s two hours of your life plus a couple of gallons of gas. So certainly a dollar is a better alternative than that.”

The state expects to add 40 kiosks at stores around the state in the first two years of the contract, most in Southern Nevada where the DMV wait times are usually longer than in other locations. More kiosks may be added if there is demand.

The new kiosks are expected to be available beginning next spring. The state has 27 kiosks now, most located in DMV offices, but some services, such as renewing a driver’s license, are not yet available using the existing machines, he said.

The board, made up of Gov. Brian Sandoval, Attorney General Catherine Cortez Masto and Secretary of State Ross Miller, approved the contract.

Sandoval asked for a presentation on the contract because of the size of the agreement.

“This number is very large, but instead of an expense for the state, this is actually a savings for the state,” Breslow said.

The current kiosk program subsidizes the cost of each transaction from the state highway fund, he said. The Legislature changed this to allow the fee to be charged to the user for the convenience of using the kiosk, Breslow said.

“So we’re hoping to take about 12 percent of the line, of the people that are currently coming to the DMV, and making it a lot more convenient for them not to have to come to our building, and to do it in their neighborhoods,” he said. “But we have a lot of education to do.”

A lot of the stores that will be hosting the kiosks will be getting the message out to the public that the DMV services will be available at their establishments, Breslow said.

Sandoval complimented Breslow for reducing wait times at DMV offices, as well as the feature on the agency’s website that shows the wait times at the different offices.

Breslow said many DMV tasks can be accomplished using the agency’s website, but that usage has topped out at about 33 percent for on-line activity. Some people prefer the kiosks, which can also provide information in Spanish, he said.

Breslow said the new machines won’t take cash, but they will take credit and debit cards and will scan a check as well.

–

Audio clips:

DMV chief Bruce Breslow says the kiosks will be available 24 hours a day for DMV customers:

081511Breslow1 :18 a Sunday, so.”

Breslow says most transactions will cost the user $1:

081511Breslow2 :17 down to $3.”

Breslow says a $1 fee is cheaper than spending time on the freeway to wait in line at a DMV office:

081511Breslow3 :18 alternative than that.”

 

 

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State Board OKs $539K To Pay Counties For Costs Of Running Special CD2 Election

By Sean Whaley | 12:25 pm August 15th, 2011

CARSON CITY – The Board of Examiners today approved a request for more than half a million dollars from a legislative contingency fund to pay the counties for the cost of the Sept. 13 special election in the 2nd Congressional District.

The board, made up of Gov. Brian Sandoval, Attorney General Catherine Cortez Masto and Secretary of State Ross Miller, approved the $539,000 request, which will be considered Aug. 31 by the Legislature’s Interim Finance Committee.

Miller said the other options to pay for the election were to pass the costs on to the counties or to use a dwindling pool of federal funds, but that the request from the contingency fund is the best choice. Requiring cash-strapped counties to pay the costs could lead to cutting corners, and Miller said it is important to ensure the integrity of the election.

Secretary of State Ross Miller. / Photo: Sean Whaley, Nevada News Bureau

Miller said his office made every effort to reduce the expenditures to reasonable levels. Initial estimates put the cost at in excess of $1 million

“We explored every avenue we could to try to reduce costs for the election,” he said. “The counties obviously had not budgeted for this election, so allowing them to be reimbursed from the contingency fund gives us a much greater level of comfort that they will ultimately run the election as the public would expect.”

Miller said the use of federal Help America Vote Act (HAVA) funds was not recommended because the amount of money in the account is dwindling. The money has in the past been used to buy the electronic voting machines used in the state’s 17 counties for elections. The state has used just under $150,000 in HAVA funds for the special election, in part to provide replacement voting machines, he said.

Miller said it is too early to estimate the turnout in the election, which pits Mark Amodei, a former state senator, as the Republican, versus state Treasurer Kate Marshall, the Democrat. The race also includes Independent American Party candidate Tim Fasano and independent Helmuth Lehmann. The candidates are seeking to replace former Rep. Dean Heller, who was appointed to the U.S. Senate by Sandoval to replace John Ensign, who resigned.

But Miller said he does expect a low turnout in the race, which encompasses 16 of the state’s 17 counties plus a portion of Clark County.

“I think it’s going to be very low, just based upon the feedback that we have received and in conversations with the county clerks,” he said. “I think it is a little bit early to try to guess at the turnout percentage because the campaigns and the national parties obviously over the next few weeks will start expending significant sums of money trying to get people out to the polls, and so that could certainly influence turnout, but I still don’t think it’s going to be a very high turnout election.”

–

Secretary of State Ross Miller says using the legislative contingency fund to pay for the election is the best option:

081511Miller1 :24 funds for us.”

Miller says he expects a low turnout:

081511Miller2 :27 high turnout election.”

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First CD-2 Debate This Week in Reno

By Elizabeth Crum | 10:28 am August 15th, 2011

Three candidates competing for Nevada’s 2nd U.S. House Congressional District seat will debate in Reno this week.

The debate, sponsored by the Truckee Meadows Post 3819 of the Veterans of Foreign Wars, will be moderated by KRNV news anchor Joe Hart.

Candidates included will be Democrat Kate Marshall, Republican Mark Amodei and Independent American Party candidate Tim Fasano.

The debate will be held at 7 p.m., Wednesday, Aug. 17 at the city’s California Building and will be broadcast by KRNV News 4 and News Talk KKFT 99.1 FM Fox News Radio.

The event is free for attendees.

Update: Independent candidate Helmuth Lehmann has been invited and is expected to participate in the debate.

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Sandoval Says Eye-Opening Trip To Middle East Showed Pride And Dedication Of Nevada, U.S. Troops

By Sean Whaley | 4:38 pm August 12th, 2011

CARSON CITY – Gov. Brian Sandoval figured the Nevada soldiers serving in Afghanistan appreciated his visit last week when they literally tore the organizational patches off their uniforms and offered them up as keepsakes on his trip to see the country’s military efforts first-hand.

Sandoval, back nearly a full week today, said his eyes teared up when the soldiers made such a heartfelt gesture.

“But it’s all about the soldiers, it’s not about me,” he said.

Gov. Brian Sandoval talked today about his trip to Iraq and Afghanistan. / Photo: Sean Whaley, Nevada News Bureau

Traveling with the troops in C-130s and Black Hawk helicopters during an intense five-day trip that also included time in Iraq and Kuwait, and sometimes having to wear body armor for protection, Sandoval made the trip with three other governors.

Sandoval said he felt secure the entire time. He was invited on the trip in May from the Department of Defense but had to keep the news quiet for security reasons.

“It was a very aggressive schedule,” he said.

Sandoval spoke to the Nevada News Bureau today about the trip and his experiences.

He visited two bases in Kuwait, two in Iraq and four in Afghanistan, including Kandahar, where he met with members of the Nevada National Guard’s 422nd Expeditionary Signal Battalion. Sandoval attended their deployment ceremony in January in Reno and said he will be on hand when they return to Nevada.

Sandoval said as commander in chief of the Nevada National Guard it was important for him to see Nevada’s troops on the ground in Iraq and Afghanistan. He also wanted to show his respect and appreciation to Nevada’s soldiers for their service and sacrifice.

“But even more importantly to see how they live and see the conditions that they are in, the pressures that they are under, to see how proud they are to serve,” he said. “Certainly they are all looking forward to coming home, but they are very, very proud to serve their country. We can’t thank them enough.

Some of the patches soldiers gave to Gov. Sandoval.

“I met a young man from Dayton High School who’s a year removed from graduation and he’s working checkpoints in one of the most dangerous places in Afghanistan,” Sandoval said. “To see him personally and to see such a young man who is so proud to serve; and he’s right there on the front lines.”

Sandoval left Kabul, Afghanistan on Thursday, flying to Ramstein Air Base in Germany where he spent the night. While there, he visited Landstuhl Regional Medical Center, the largest military hospital outside the continental U.S.

Sandoval said he met a wounded Las Vegas soldier as well as soldiers injured while serving in Afghanistan from the country of Georgia.

Gov. Brian Sandoval outfitted with protective vest and helmet while in Afghanistan.

“That was one of the moments that made a huge impression on me because there were three of them (who were) injured as a result of an IED (improvised explosive device),” Sandoval said. “And one of them had had a below-the-knee amputation. And he didn’t complain. His only statement was it is such a privilege for (him) to serve alongside the American soldiers.”

Sandoval said it was “pretty remarkable” to have breakfast in Afghanistan and then dinner in Germany.

Sandoval arrived back in Reno at 1 a.m. Saturday, Aug. 6, before learning of the horrific loss of troops in the helicopter shot down in Afghanistan.

The danger that the troops are in all the time was brought home for Sandoval when he observed a “ramp ceremony” in Bagram, Afghanistan, in which a fallen solider was honored before being brought back to the United States.

“And you watch as each of the soldiers goes on the back of this ramp of the C-130 and pay their respects and go off, and then to hear about that tragedy with the soldiers that lost their lives on that helicopter,” he said.

Sandoval is now busy writing letters and following up with the families of the soldiers he met and looking to coordinate some deliveries of items the soldiers say they would like to have, from DVDs to foot powder to decent razors.

“It’s the little things that really matter,” he said.

Gov. Brian Sandoval with members of the 422nd Signal Corps. in Afghanistan.

Sandoval said he is also working to ensure that when the troops return, there will be college and job opportunities for them. There is a jobs program for returning veterans operated through the Nevada Department of Employment, Training and Rehabilitation. There is also free tuition available at Nevada’s university system for returning troops and Sandoval said he wants to make sure that continues.

“But I’ve given them my full commitment that I’m going to do whatever I can to help support them,” Sandoval said. “I told them to call me personally and I will be able to help them. Because I will do whatever I can for them, and even more so after seeing what they are experiencing and what they are doing for all of us.”

–

Audio clips:

Gov. Brian Sandoval says meeting the injured troops from the country of Georgia made a big impression:

081211Sandoval1 :24 the American soldiers.”

Sandoval says the trip was important to see the troops in person in theater:

081211Sandoval2 :18 thank them enough.”

Sandoval says he met a young man from Dayton working in one of the most dangerous places in Afghanistan:

081211Sandoval3 :21 the front lines.”

Sandoval says watching the “ramp ceremony” was a moving experience:

081211Sandoval4 :16 on that helicopter.”

Sandoval says he will do all he can for the troops when they return to Nevada:

081211Sandoval5 :18 all of us.”

 

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