Posts Tagged ‘catalyst fund’

Nevada Attorney General Says Catalyst Fund To Help Economic Development Is Constitutional

By Sean Whaley | 5:15 pm February 21st, 2012

CARSON CITY – Nevada Attorney General Catherine Cortez Masto today issued a legal opinion concluding that a $10 million Catalyst Fund created by the Legislature to help aid in business expansion and economic development does not violate the state constitution.

“The Nevada Constitution does not prohibit the state from disbursing Catalyst Fund money to regional development authorities that by definition must be local governments, or prohibit local governments from disbursing Catalyst Fund money to companies,” the opinion released today says.

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

The opinion, requested by Steve Hill, director of the Governor’s Office of Economic Development, was first reported by Las Vegas Sun columnist Jon Ralston.

The fund was created as part of a bipartisan plan by Gov. Brian Sandoval and the Legislature to promote economic development and job creation in Nevada.

The constitutionality of the fund has been questioned by the Nevada Policy Research Institute.

The conservative Nevada think tank cites Article 8, Section 9 of the state constitution, which says the state shall not donate or loan money to corporations except those created for educational charitable purposes.

State Job Creation Efforts Move Forward With Funding Of New Economic Development Office

By Sean Whaley | 6:00 pm December 15th, 2011

CARSON CITY – Efforts by Gov. Brian Sandoval and state lawmakers to encourage new business creation, relocation and expansion in Nevada took a major step forward today when the Legislature’s Interim Finance Committee approved nearly $3.5 million to fund a new economic development office.

The funding will enable Steve Hill, executive director of the Governor’s Office on Economic Development, to develop a state economic development plan and hire the staff needed to move forward on private sector job creation efforts.

Steve Hill, executive director of the Governor’s Office on Economic Development. / Nevada News Bureau file photo.

The state plan, relying in part on research performed by the Brookings Institution and SRI International, is expected to be released in early February. The report identified seven economic sectors, some already in existence such as gaming and tourism, and some emerging, such as clean energy, where Nevada should focus its efforts.

Lawmakers peppered Hill with questions ranging from the measures that will be used to determine the success of his agency’s efforts at job creation to the proposed salaries of the eight positions that will be filled with a portion of the funding.

Positions approved for his office include three industry specialists at a maximum salary of $110,000 each, an industry analyst with a maximum salary of $90,000, a communications manager with a maximum salary of $80,000, and a technology commercialization director with a maximum salary of $110,000. There are also two support positions with maximum salaries of $40,000.

The new approach to economic development is the result of Assembly Bill 449, a measure sponsored by Assembly Speaker John Oceguera, D-Las Vegas, and supported by Gov. Brian Sandoval and a bipartisan group of state lawmakers. The bill also established a $10 million Catalyst Fund to help firms relocated or expand in Nevada. The money will be used to provide grants to local governments for economic development projects.

“I am in the process of finishing my 10th week on the job,” Hill told lawmakers. “And I think I can provide very solid reasons for the request that we’re making today. But we’re also learning as we’re going along. We understand that resources are tight, not only throughout Nevada but through the country, and we want to spend this money in the most effective and efficient way possible.”

In response to lawmaker questions, Hill said the state plan will include ways to measure the success of the new effort.

“There will be a detailed description of how we will measure progress in economic development and in the development of our economy in the state,” he said.

Assemblywoman Debbie Smith, D-Sparks, chairwoman of the IFC, asked Hill if the funding request is premature since the state plan has not yet been published.

“So I think the question is, without the state plan, where is the confidence level in moving forward with all of these positions and this work without the state plan being done, kind of relying solely on the Brookings report?” she asked.

Hill said the budget request will be in alignment with the state plan.

“And finally I think we all sense, the governor and the Legislature, everybody involved in economic development throughout the state, and the citizens of Nevada, an urgency to get started on this,” he said.

Nevada’s unemployment rate is the highest in the nation.

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Audio clips:

Steve Hill, executive director of the Governor’s Office on Economic Development says he wants to spend the money as efficiently as possible:

121511Hill1 :27 efficient way possible.”

Hill says the state plan will provide clear ways to measure progress:

121511Hill2 :11 in the state.”

Hill says there is an urgency to get started on the agency’s efforts:

121511Hill3 :16 started on this.”

Assemblywoman Debbie Smith questions the timing of the funding request without a state plan in place:

121511Smith :23 the Brookings report.”