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GEOFF DORNAN / NEVADA APPEAL
Rory Reid, a Democrat running for governor, says his ideas to aid business are “revenue-neutral.”
Saturday, Oct. 17, 2009 | 2 a.m.
Related Document (.pdf)
Sun Archives
- Rory Reid emphasizes need to remix economy (10-15-2009)
- Rory Reid outlines plan for Nevada if elected to run it (10-14-2009)
- Speaker Barbara Buckley says she won't run for governor (9-11-2009)
- As the Reids seek office, who hurts whom? (9-8-2009)
- Political intrigue brewing in the 2010 governor's race (8-16-2009)
- Rory Reid hits duo of likely rivals with 1 stone (6-18-2009)
- Rory Reid lays ground for run for governor (9-12-2008)
- Building Trades council endorses Rory Reid for governor (6-8-2009)
Related
A centerpiece of Rory Reid’s campaign platform is a proposal for the state to lend money to small businesses, start-up companies and renewable energy projects to help get them off the ground.
Yet that proposal from the Democratic candidate for governor faces significant questions about its constitutionality — questions that Reid declined to answer Friday.
Nevada’s Constitution appears clear on the issue of the state lending money to private interests. “The State shall not donate or loan money, or its credit ... except (to) corporations formed for educational or charitable purposes,” according to Article 8, section 9.
Reid said he is working on a mechanism that would allow the state to make such loans.
“These are legal issues, and there are legal arguments to be made,” he said following an address to the Reno-Sparks Chamber of Commerce. When asked what those arguments were, he demurred. “I’m developing it. I want to make sure the arguments are good before I share it with the world.”
Reid acknowledged that he defied political convention by releasing a 30-page policy platform upon officially announcing his bid for governor.
“The political convention is, when you’re running for something, especially early, don’t say anything,” he told the chamber audience. “You can’t argue with nothing.”
But, he said, he wanted to “start the conversation” about the future of Nevada even though the plan would be “picked apart and criticized.”
The strategy behind the plan appears to be an effort to stake out the policy high ground from which Reid can argue that, perfect or not, he has a plan while his opponents do not.
“If they don’t say anything, I’ll take it that they agree with me,” he said.
The downside, as Reid acknowledged, is that the policy paper provides fodder to the media and opposing campaigns.
Many parts of the plan — dubbed “The Virtual Crossroads: Rory Reid’s Vision for the Future of Nevada” — appear to rely on the state lending money to businesses. Among the proposals:
• “Boosting access to capital for struggling small businesses and new start-ups by providing capital and loan guarantees for banks.”
• Creating a “Nevada Capital Investment Corporation to invest in venture capital projects agreeing to establish a presence in Nevada.”
• Encouraging “micro-lending” to businesses with fewer than five employees that have been rejected by traditional banks.
The paper states that a future economic plan will spell out details of these proposals.
Economic development advocates in the state have complained that the constitutional restriction on the state giving directly to companies has hamstrung them in the race to attract new businesses. States such as New Mexico and Michigan offer cash incentives.
Reid’s campaign pointed to past efforts by the Legislature to create similar pots of money as proof that there are mechanisms that allow the state to lend money, even if indirectly.
In 2007 Lt. Gov. Brian Krolicki proposed taking $5 million a year from unclaimed property, bonding it and using a pool of $70 million to attract high-tech industries. That bill died in the Assembly.
This past session, legislation to create a $20 million fund to be lent through banks to minority-owned and small businesses passed but was vetoed by Gov. Jim Gibbons.
Reid said Friday he had spent a lot of time, talking to a lot of people, about his plan.
“I want to marry people with good ideas with venture capital. We need more venture capitalists in Nevada,” he said. “Most of these plans are revenue-neutral and they incubate businesses. Why wouldn’t you do it?”
Kudos to Rory Reid for bringing new thinking and a fresh approach to the conversation about the future.
Whats so new & fresh about the government taking my money and giving it away to someone else.
And I hardly thing the government is qualified in any way shape or form to determine who may or may not be a good candidate for starting up a business with government money. Remember Mayor Jones and her failed vision for downtown that's still costing the taxpayers bucket loads of money even today.
Nothing "new and fresh" about Rory. He will use the same selfserving methods he and his father have projected for years. The only time they sound "normal" on thier politics is when an election is near. Get Harry out and don't let Rory in Nevada!
Sounds like to me that he has taken a page out of his old mans handbook. To propose or back something that is unconstitunial. IE if you dont buy health insurance you can be fined and thrown in jail.
Get rid of Harry and say no more Reids! We cannot afford them.
It is refreshing to have someone come up and present ideas. We have had enough of "no new taxes" and then silence. Mr Gibbons have proven to be an empty shirt. He has no ideas at all.
Do we really want Reid in Carson City?
He oversaw the approval of union contracts that pay over half of the county's firefighters in excess of $100k per year and pensions of $100K per year when they retire.
He had oversight of the construction of the Regional Justice Center which originally was to cost $80 million but turn out to be over $150 million and it was finished with problems.
He had oversight of the adminstration of the airport land dealings where people were purchasing land at ridiculous low prices and then soon after flipping the and selling them at their real market prices.
He was sitting on top of the biggest cash tax generating cow in the nation...the Strip... and now the county is struggling for its life.
Wow.....we will have to be extremely dumb or crazy to give such a person the keys to the state.
Who are you going to trust knowing the law - REALLY knowing the law?
Some jake-leg never-was?
Or a former member of the NV Assembly, former NV Attorney General, and former Federal Judge?
I rest my case.
Enough of the politics.
Let's get to the real story here:
What's with the 8 cheesy photos that The Sun has provided for us?
I can't decide if #3 or #4 is more entertaining.
What's your vote?
#4 what a tough guy.....sissy
the reid's don't care about the constitution....they have their own and they think that they can do anything that they please....
I could care less about Rory Reid's platform.
His father, the waffler, is widely reported as being "against" the public option in the health care reform bill.
If Daddy Reid blocks the public option, or neuters it, I won't vote for Daddy Reid or Baby Reid.
If he had a 2x4 over his shoulder and said hooooooooooooooooooooooooooooooooooooo, he would look intimadating
Both him and his old man are floaters!No matter how many times you flush them,they keep comeing back!What a couple of real crappers!!!
Where does Rory plan to get the money that he will lend to small businesses? Why not give all businesses a tax break for each new employee they hire?
LV Sun: Other leading newspapers around the country carefully screen comments. You apparently do not. It is destructive to the quality of public dialog on critical issues that empty-headed mud is given the same platform as thoughtful competence!