Showing posts with label State of the State. Show all posts
Showing posts with label State of the State. Show all posts

Thursday, January 17, 2013

The Real State of the State

Last night, Governor Brian Sandoval celebrated a "return to normal" here in Nevada. This morning, The Sun's Patrick Coolican reminded us of why we should be troubled by this. So has PLAN.

"Governor Brian Sandoval's State of the State speech short-changed education, human services, state workers and the people of Nevada. He showed more fealty to corporations and the discredited idea that no/low taxes bring economic prosperity than he did to our kids. He talked about no longer falling back. How can we fall back any further when we're last in everything, including education, health care and per capita public workers? He's cutting taxes on businesses but will force ordinary Nevadans to continue paying nearly the highest sales taxes in nation. Nevada's vexing problems won't be solved until we fix our revenue structure, which will require real leadership."
-- Bob Fulkerson, executive director, Progressive Leadership Alliance of Nevada

That's a perfectly concise summary of what we heard last night. And ever since Sandoval's speech, we've seen even more "devils in the details". The Sun's Anjeanette Damon and David McGrath Schwartz started pointing out the chicanery in Sandoval's proposed budget.

Sandoval is extending tax increases that would otherwise expire. He is also diverting money from special funds — to the tune of $422 million — to support general state programs.

Democrats are being typically cagey about how they might seek to increase tax revenue, but they are hinting broadly that it’s an effort they will undertake. First, they will look at how existing taxes are both defined and collected. “How do you define who really pays those types of things?” Speaker Kirkpatrick said. “So we’ll be cleaning up those first, which will bring some revenue.”

Hidden in Sandoval's proposed budget are more raiding into the state "rainy day fund", diversions of money specifically meant for public education & transportation into the general fund, and using "roll-ups" to make a $47 million uptick in the education budget look like a $135 million increase. And on top of that, Sandoval wants to cut the modified business tax while extending the rest of the 2009/2011 "Sunset Taxes". And we're supposed to believe this is a "balanced budget" that properly funds what the state needs?

Democratic leaders questioned why he was cutting taxes for business when the state doesn’t adequately fund education, and why he was depleting the state’s rainy day fund.

“Why in the world would we cut the (payroll tax) when we can’t properly fund schools,” said Sen. Debbie Smith, D-Sparks, and incoming chair of the Senate Finance Committee. "Why would we eliminate the rainy day fund when we’re not in a crisis? That money is supposed to be for an emergency.”

Probably because he thinks this is the more politically appealing route. At least I'm not the only one seeing this. ProgressNow Nevada called out Governor Sandoval on taking the route of political convenience.

Tonight Governor Sandoval showed a lack of leadership. This was not the speech of someone looking to lead Nevada to a more prosperous future; it was one of a Governor pursuing an agenda that is best for his political future, not the people of Nevada.

We've heard Gov. Sandoval give his moderate song and dance before. But the action we've seen has been anything but - he's asked seniors, students, and the poor to sacrifice while not asking a single sacrifice from big corporations and out-of-state mining companies.

The reality is Gov. Sandoval is offering us nothing but more of the same – no serious investment in education or the social services that were already devastated by Gov. Sandoval’s previous budget.

This is the real state of the state. This is the ugly reality of what we will soon be seeing in Carson City. Brian Sandoval thinks he can cruise with another budget full of gimmicks and lacking real investment in the public infrastructure necessary for a brighter economic future. One can only hope the Legislature will consider smarter budgeting.

Wednesday, January 16, 2013

State of the State Liveblog

So it's finally here. Governor Brian Sandoval's State of the State speech is happening. So consider this a "stream of consciousness" that will be updated as the speech goes on. We'll also be on hand to cover the Democratic response from Senate Majority Leader Mo Denis (D-North Las Vegas), as well as the initial media spins of the night.

Tomorrow morning, we'll have more in-depth reporting and insight on what happened.

6:07 PM: Sandoval just noted the backdrop of his previous State of the State. Funny enough, he took credit for the VERY last minute budget deal that was forced on him & the Legislature by the Nevada Supreme Court!

He then noted the real economic progress that Nevada has made since 2011. And he noted the growth in state revenue collections. However, he did not note the reasons why economic recovery has been so much more difficult than that in our neighboring states. (Hint: It's the public infrastructure, stupid!)

6:11 PM: Sandoval then basked in the glow of "teacher punching". Yes, nothing quite improves public education like stripping away teachers' workplace rights! (/snark)

Sandoval then shifted to his more "moderate" policy prescriptions. He touted all day kindergarten, English language learner aid, "Jobs for America" in schools, and... Teach for America! Seriously?

At least the other programs seem promising. Legislators just have to fight for actual funding to make them work.

6:16 PM: "School choice!" Yes, nothing quite improves public education like threatening to starve it to death.

6:18 PM: Huh?! Whatever happened to teaching?

6:21 PM: Wait, so UNR & UNLV can actually start new programs for a change? Will they ever have a chance to reopen the programs they've had to shut down in the past decade?

At least Sandoval is actually proposing new programs and some new funding for our colleges. But again, this only barely scratches the surface of what our colleges truly need.

6:27 PM: Sandoval then shifted to boasting about "companies moving to Nevada". Ah yes, Apple. Should we really boast about sweetheart deals that encourage tax evasion elsewhere? And where are the jobs produced?

At least Zappos is doing stuff down south.

Oh, and here it is! Sandoval promised, "No new taxes." So how again do we invest in restructuring our economy?

6:30 PM: Shorter Sandoval: "Fuck you, feds! We can scare our sage grouses all on our own."

Oh, and here comes the promise to allow for online gaming. Jeez, this is about time.

6:35 PM: Finally, health care. Sandoval touted the 78,000 Nevadans who can finally access health care with ACA Medicaid expansion, as well as the $500 million that will be pumped into the economy...

Then he unveiled his plan to undermine it by demanding co-pays from Nevadans who can't afford them! Hello, what is Medicaid? I want to hear Sandoval's answer. And I'm sure these poor patients love to hear politicians threaten to take away their health care should their political fortunes change.

6:39 PM: OK, here's the easier stuff.

Sandoval applauded the work of Catherine Cortez Masto and everyone else who worked on the federal foreclosure settlement. Hopefully, that aid actually reaches the homeowners who need it.

Sandoval also did a touching salute of Nevada's military veterans. Hopefully, they can get more than just nice words. They need health care. They need jobs. And they need real support. That's the kind of respect that they deserve.

6:43 PM: Sandoval just did a lovely tribute to the history of the women's suffrage movement. Nevada granted women the right to vote 5 years before the nation did overall.

Nevada has often been a leader in civil rights... So can we be again? Governor Sandoval can begin by announcing his support for repealing Question 2 and giving Nevada's LGBTQ families the right to civil marriage that they so deserve.

6:57 PM: Here's Mo Denis' response.

After doing a bio, Denis addressed the issue of tax fairness and overall revenue. Yes, why continue raising sales taxes on the working poor while shoveling more bailouts for billionaires? So what's the alternative?

Mo Denis also responded to Sandoval's claims on education. Thankfully, he flat out declared that Sandoval's "modest increase" of the education budget is not enough. He also promised Democratic action on fighting for universal full day Kindergarten.

"Improving our schools is key to creating new jobs in Nevada." True. And it IS government's responsibility to create an environment that's conducive to job creation & economic growth. That's why California, Arizona, & other Western states have seen more sustained economic growth while we've been wishing for a good month of casino wins.

We do need more tech & biotech jobs. And we do need more economic diversification. Hopefully, Mo Denis and other Democrats in Carson City are serious about pursuing this. The current path is not sustainable.

7:01 PM: Mo Denis also had some words to say on health care. He applauded Governor Sandoval's decision to accept the Affordable Care Act's Medicaid expansion... But he said nothing on Sandoval's crazy-ass scheme to charge co-pays! Please don't let him get away with this travesty.

He then closed with a plea to consider smarter & more robust investment in our social safety net. Lack of health care means lack of economic development. And because we won't even care for kids with Autism, people & businesses notice. This is the real, screwed up state of our state.

One can only hope Mo Denis means what he says in promising to fight for a fairer budget.

7:15 PM: So now, the spin begins! Or wait, did it already start? Ralston noted on KSNV 3 (Vegas) that Sandoval's "no new taxes" $6.5 billion budget uses quite a bit of fiscal gimmickry to evolve from the Economic Forum's original $5.8 billion projection. (One of them clearly is further extension of the 2009/2011 "Sunset Taxes".)

Another interesting facet is Sandoval's attempt to look "moderate" by essentially stealing Democratic policy ideas... Then twisting them to make them at least a little more palatable to his fellow Republicans. See Medicaid expansion and full day Kindergarten.

So what have we learned tonight? Well, you tell me. Yet again, Brian Sandoval gave a "sunny" spin to the harsh reality of the current State of Nevada. While our economy is recovering, it hasn't come anywhere close to full potential. And it won't unless we get serious about investing in our public infrastructure.

So again, will Nevada Democratic Legislature leaders fight for that? Mo Denis offered some glimmers of hope. It just remains to be seen if he and Assembly Speaker Marilyn Kirkpatrick offer more details... And then work this session to actually implement them.



So About Tonight...

In case you were wondering, Brian Sandoval will be giving some speech in Carson City tonight. And it probably won't sound like what we heard in Las Vegas last week. Rather, expect more of the same (old shit).

-----About $6.5 billion budget, slight increase [...]

----$135 million in what he will call "new investment" in K-12: Expansion of all-day K, first into at-risk schools, maybe more later, but also will push school choice, kids reading by third grade, invest in Teach for America, another pilot program (Jobs for America's Graduates), ELL investment

---Appropriation to boost Millennium Scholarship

---Cut MBT for more businesses

---Medicaid co-pays and emphasize may opt-out of expansion in future

So he plans to throw in just enough numbers to sound "moderate". But in reality, he still doesn't get the point of Medicaid. And he still doesn't understand the depth of our underfunding of our schools along with other areas of public infrastructure.

Jon Ralston has joked about using the #sunnystate hashtag on Twitter tonight during the State of the State speech. I think I'll stick to #NVSoS. But certainly, we'll be seeing some "sunny side up" delusions on display on Carson City. No matter how much "Governor Sunny" tries to spin everyone, reality still awaits outside. And the rest of Nevada can't afford to ignore it.

(And yes, by the way, I will be live-blogging here and live-tweeting the speech tonight... Even though we already know over 90% of what's about to happen.)

Monday, January 24, 2011

"State of the State" Coverage Tonight & Tomorrow

Tonight's the night we've been waiting for... Or is it? It's not as if Governor Sandoval will be giving us reality tonight. Instead, it will probably be some sort of self-congratulatory BS. Whatever.

Anyway, I'll be watching the whole thing tonight with our friends at SEIU and PLAN, and I will be live tweeting @atdleft, and tomorrow morning I'll have deeper analysis up over here. Just be ready not to hear any real answers. We may need to supply some for Carson City ourselves.

Tuesday, February 9, 2010

The State of Our State? Not So Good, No Thanks to Gibbons & His Extreme Right Politics



Oh, joy. He's back to cause more damage and destroy this state. Why is it that it seems like no one is doing anything to stop him?

We all know that "Luv-Guv Gibbons" doesn't give a sh*t about our state. This is all just a grand political game for him. It's his last chance to win the GOP nomination for reelection.

He cares nothing about slashing the social safety net to shreds, denying people badly needed health care, destroying what's left of our education system once and for all, and all around reducing our state to the equivalent of a small, underdeveloped third-world country.

And for what? For a failed far right ideology? For a failed Republican campaign slogan? Desert Beacon gives us a reality check:

If "lower taxes" were the fulcrum on which to lift an economy out of a recession, then Nevada ought to be booming. The state has the second lowest tax level in the nation: "Nevada's state and local tax burden has consistently ranked among the nation's lowest. Currently estimated at 6.6% of income, Nevada's state/local tax burden percentage ranks 49th highest nationally, well below the national average of 9.7%. Nevadans pay $3,245 per capita in state and local taxes." [Tax Foundation] (emphasis added)

A popular notion among supply-siders is that the lower the overall tax liability, the higher the level of business investment, and therefore, the higher the levels of employment. The rich, it is said, if not deprived of their wealth by taxation, will invest it in enterprises which in turn will drive employment upward. Nice theory. The fact is that Nevada, with its next to last in the nation tax assessment level, has a 13% unemployment rate. [DETR/BLS] Only Michigan with a 14.6% unemployment report is currently higher.

The Tax Foundation gave Nevada a nice high score (4th) in the nation in its rankings of State Business Tax Climate. [TTF] If the direct correlation between employment growth and business tax liabilities holds then we should see states with the "best" business tax climates also having the lowest rates of unemployment. If we were to cherry pick some numbers from the "top five" low business tax states we could extrapolate just such a conclusion. South Dakota, with the "best" business tax climate has a 4.7% unemployment rate; second place Wyoming has a 7.5% unemployment rate. Third place Arkansas has an 8.8% unemployment rate, and fifth place Florida has an unemployment rate of 11.8%. When two out of five states with low taxation rates (Nevada/Florida) have higher than average unemployment rates the correlation can't be made, and there's certainly no support for a causal relationship. Nor, can we compare the economies of South Dakota and Wyoming, based on primary industries, with Nevada and Florida, which both have significant tertiary industry economic components.

Suppose we tried it the other way around, and posited that higher taxes led to higher levels of unemployment. We'd have to cherry pick those numbers too in order to suggest a correlation. New Jersey, which ranks 50th in business tax climate has a 10.1% unemployment rate. 49th ranked New York has a 9.0% unemployment rate; and, 48th ranked California has a 12.4% unemployment rate. Not to put too fine a point to it, but all of these states, all ranked well below Nevada's rating for "supportive business tax climate," all have lower rates of unemployment. If unemployment rankings and business tax climate figures don't correlate, then perhaps we could explore other comparisons.

So if "no new taxes" is working so well for us in Nevada, why is our economy so much lousier than states like New York with higher taxes and a stronger regulatory climate? Could it be that we haven't been investing in our infrastructure like we should? That we should be strengthening our infrastructure to invest in a stronger, more diversified economy? Take it away, Maven & Meddler.

If we are going to model the state after families, then I gotta tell you that although this family - here at Rancho Maven - has cut back on some non-essentials, we haven’t quit investing in our future. We continue to cautiously spend money where it has the best chance of an enhanced ROI. We continue to improve our home (the structure and systems), we get needed medical checkups and care (can’t afford to be sick due to neglect), we service our cars and continue to invest money wisely.

Pulling the plug on education or medical services would be stupid in the extreme.

This is why I can’t support the suggested rollbacks in K-12 education, higher education or Medicaid and essential social services.

Gibbons can close the prison in Carson City today, and if he has his way with education cuts, can open it back up a few years from now.

Ain't this the truth! If we keep shirking our responsibilities to our people, all we'll get is more of the same: overcrowded prisons, inadequate schools, roads falling apart, and way too many people using the UMC emergency room for "primary care".

Well, at least we have a few sane folks like Progress Now Nevada and PLAN stepping up and taking action. And seriously, we need to join them if we want to save our state. Yes, yes, I know this is an election year and no one wants to go against the "no new taxes" mantra.

But you know what? Mining isn't paying its fair share. Small businesses can't afford a state where its workers can't survive. Big businesses are just taking advantage of our regressive tax structure to get their "money for nothing and chicks for free". Working families can't afford any more of the tax burden being placed upon them. And once and for all, we can't just rely on casino revenue to survive any more!

Gibbons is irrelevant. His ideology is failed. So why should we follow his queue to commit complete economic suicide?