Las Vegas Sun

March 28, 2024

Editorial:

How lawmakers can best use their time in Carson City

On Jan. 5, Gov. Brian Sandoval was sworn in for a second term and, with his trademark optimism, declared that the state’s best days were yet to come.

The question, though, is how the state moves on to achieve its best days.

The governor will outline his vision Jan. 16 in a State of the State speech. Lawmakers will meet in Carson City next month for a 120-day legislative session.

Here are three key areas they should consider to help Nevada move forward:

EDUCATION

• $10,559: National average per-pupil spending in fiscal year 2011

• $8,527: Nevada’s spending per pupil in 2011

• 40 percent: Share of Nevada students who failed to graduate on time in 2011-12

Fact: In 2014, the Annie E. Casey Foundation ranked Nevada’s education system the worst in the nation.

Nevada’s struggling schools are hardly a secret. Look at any legitimate ranking for education, and you’ll find Nevada near the bottom.

The debate over how to fix our schools has been boiled down to reforms versus funding. The reality is that it will take both.

To its credit, Nevada has taken key steps toward improving education with reforms and an emphasis on STEM — science, technology, engineering and math — education as a way of preparing the workforce. Those and other efforts need to continue.

But don’t forget about money. Although school critics complain about the amount Nevada spends on education, it’s important to note the state spends below the national average per pupil.

ECONOMIC DEVELOPMENT

• 6.9 percent: Nevada’s unemployment rate

• 45th: Nevada’s national unemployment rate ranking, the sixth worst in the nation

Fact: The Tax Foundation says Nevada has the third-best tax climate in the nation.

For nearly a century, Nevada economic development officials have trumpeted the state’s low taxes as a key to economic development, yet the tax rate alone hasn’t brought businesses rushing to the state.

Over the past few years, Nevada has taken a more methodical approach, using a plan spearheaded by the Brookings Institution and Brookings Mountain West at UNLV. The result is a more strategic effort and targeted recruitment of businesses that could be a great benefit to the state.

Nevada has seen its unemployment rate, once the worst in the nation, dip, but there still is more to do. The Legislature needs to continue to support such efforts by continuing to provide targeted tax incentives to bring key businesses here and fund grants to spur research and development. Support of higher education, to develop an educated workforce, also is critical.

TAXES

• $2,518: State government tax revenue per capita in 2013

• 28th: Nevada’s national ranking for state government tax revenue per capita

Fact: The state Legislative Counsel Bureau found total government spending per capita in 2011 was the third-lowest in the nation, at $4,858, well below the national average of $6,445.

During the election, many civic and political leaders campaigned against a ballot initiative that would have created a business margin tax, saying it would be better to handle tax reform in the Legislature. The margin tax lost, so the upcoming session will be their chance to deal with tax reform.

The Legislature, not the ballot box, is indeed the appropriate place to handle tax policy. However, lawmakers over the years have been reluctant to deal with it, and the result is the state has a system that doesn’t work. Small businesses complain about unfair rates and regulations, while major retailers and big businesses can escape virtually tax-free.

Politicians and interest groups argue about tax rates and the amount of revenue the state pulls in, but there is general agreement the system is antiquated and in need of reform. The governor and Legislature should take on the politically risky task of tax reform. It is long past due.

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