Las Vegas Sun

March 28, 2024

SUN EDITORIAL:

Pushing off problems

Sandoval’s first veto shows a shortsighted approach to Nevada’s budget

Republican Gov. Brian Sandoval on Monday vetoed his first bill, a plan that would have allowed school districts to use some of their bond reserves to fund school rehabilitation projects.

Assembly Bill 183 was a piece of the Democrats’ jobs plan — it would have provided opportunities for jobless construction workers — while also addressing an important educational need.

In a veto message, Sandoval said the plan had “merit,” but said “the condition of our schools and the struggles of the construction industry are not the only challenges we confront.”

“Indeed, with an unemployment rate of 13.6 percent and the nation’s worst graduation rates, rarely has our state been so severely tested,” he said. “In the face of such difficulty, we cannot afford to be parochial.”

Sandoval was apparently referring to the fact that the bill’s focus would have been in Washoe County, where 45 percent of the schools are more than 50 years old. Clark County School District officials said they wouldn’t be able to use bond reserves for construction projects.

However, the governor’s objection to AB183 isn’t really about being “parochial.” The reality is that Sandoval has plans for the debt reserves — he wants to shift it to fund school operations. Never mind that the money wasn’t meant for operations, but instead is kept in reserve, as required by law, to back voter-approved school construction bonds.

School officials and many lawmakers have objected to the governor’s plan, and several have argued that taking the money for operations would go against the will of the voters who approved the construction bonds. But Sandoval dismissed that argument and said the bill’s supporters had a “narrow view.”

Give the governor credit for one thing: He is something of an expert on narrow views, such as his blind adherence to his foolish campaign pledge not to raise taxes. The state is facing a budget deficit estimated at $2.5 billion, and Sandoval has limited the options to closing it.

He is pushing a budget plan that is little more than smoke and mirrors. He has used a variety of budget gimmicks and one-time moves, such as taking local funds, shifting services and borrowing against future revenue. It’s all an effort to avoid personally raising taxes.

However, if Sandoval’s budget were put in place, it would likely mean higher taxes. For example, the Clark County School District says if its bond reserve funds are taken, and its ability to pay off the bonds is hampered, it could lead to the district raising its share of the property taxes.

As well, Sandoval has proposed turning over state services to the counties and giving them the ability to raise taxes to fund those services, which would undoubtedly mean more taxes.

The governor’s approach to the budget doesn’t make sense. He has tried to fashion himself as a fiscal conservative and talked about making responsible budget choices, but how is taking school bond reserves fiscally conservative, much less responsible?

Sandoval is failing to look at the long-term ramifications of his budget, as his veto of AB183 shows. Whether the issue is school improvements or taxes, he is merely pushing the state’s troubles into the future. The state has done that for too many years. It can’t continue to operate that way.

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