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Thursday, Jan. 20, 2011 | 3:40 p.m.
Sun Archives
The Nevada construction industry is urging state lawmakers to increase tax revenue and stop raiding existing funds to better finance infrastructure projects and create 100,000 jobs.
The Building Jobs Coalition released a white paper ahead of the start of the Nevada Legislature in February. The coalition of construction groups, labor unions, architects and other professionals in construction said its proposals would go a long way to restoring the 90,000 construction jobs lost statewide since late 2006. That’s more than half of its workforce, and the industry employees account for one of every three unemployed, the report said.
None of that includes the tens of thousands of jobs lost in design, engineering, planning and support industries, the group said.
Coalition members are optimistic their recommendations will get strong consideration in the Nevada Legislature and hope at least some of their proposals emerge. That will be a difficult hurdle as the state deals with a $3 billion deficit and opposition from Gov. Brian Sandoval on tax increases.
“If we were able to create 100,000 jobs, that would stabilize the economy and tax base and get us through this recession,” said Steve Holloway, executive vice president of Associated General Contractors of Las Vegas, one group in the coalition. “If we don’t do anything about jobs, we will be right back for a special session at the end of the year.”
The study echoed that, saying an essential part of Nevada’s economic recovery is an investment in the state’s roads and highways; schools and universities; sewer and flood control infrastructure; and government facilities.
“It’s vitally important that Nevada not only stop the diversion of money away from these programs but also find ways to accelerate their construction,” the report said.
The group outlined a strategy it says would create 27,000 jobs in the next couple of years and more than 105,000 over the long term. The first would generate $1.58 billion in wages and combined would generate more than $6.1 billion.
The No. 1 priority proposed is the creation of a jobs fund — a dedicated revenue source for capital projects, the study said. It called for taking property taxes diverted from local governments in 2009 to capital programs that can’t be diverted for state or local operations.
In 2007, the state took money from local governments and Las Vegas Convention and Visitors Authority to build portion of the sate highway projects recommended by a blue-ribbon task force. In 2009, the state drained its own capital improvement accounts and took more local money to avoid state layoffs, the study said.
“Now, neither the state nor local governments have the infrastructure financing they need to offset even the wear and tear on existing infrastructure much less the projects in the development pipeline.”
The state could supplement that fund with other revenue, including a one-quarter of 1 percent sales tax; a 10-cent property tax levy or infrastructure surcharge imposed on all licensed vehicles. Combined, that could create a $100 million a year fund that enables the issuance of more than $1 billion in bonds, the study said.
The study called for indexing the motor vehicle fuel tax to inflation and putting the additional funds into local infrastructure programs. With the exception of Washoe County, that fuel tax is a flat amount per gallon but with fuel economy improved on vehicles, that has generate less revenue.
By doing so, $400 million in additional bonding would be created for transportation projects during the next three years and $1.8 billion through 2020, the study said.
The group called for requiring state and local governments to dedicate annual spending to properly maintain infrastructure. The group said the Legislature allocated $43 million in capital projects for major maintenance for the Nevada System of Higher Education, which isn’t enough to keep up with depreciation.
The group said Henderson depreciates its roads at $107 million every two years, but is spending only $57 million. The same is true for Clark County and North Las Vegas.
“The fact that the largest government entities in Nevada appear to be consistently underfund major maintenance is a significant issue and a disservice to taxpayers,” the report said.
The report was written by consulting group Applied Analysis of Las Vegas and its principal, Jeremy Aguero, said he thinks many of the proposals are doable in the Legislature even though raising tax revenue will be a challenge.
“We know that doing nothing isn’t an option,” Aguero said. “There are companies that won’t be here a year from now if they don’t.”
The report detailed some longer-term strategies to create jobs:
• Require state and local governments with maintenance crews that do some construction to use the private sector to provide those services when possible for design and construction projects.
• Prohibit interest earnings within funds for water, sewer and other capital projects from being used for operations.
• Issue a bond to pay for $2.1 billion in transmission lines to carry renewable energy by imposing a charge on power users.
• Require the state to produce a rolling five-year capital improvement plan as is done by local governments.
• Prohibit the use of capital funds in the state and local government budgets for operating expenses, including payroll.
• Spend more than $5 million a year on economic development. That includes addition money on marketing, infrastructure and training.
• Restructure state economic incentives to focus more on existing employee training rather than reduced tax payments to new and expanding businesses over the next five to seven years. It also suggests a tiered program rewarding those companies that providing more jobs and higher paying jobs.
• Create an economic incentive program for businesses that attract their suppliers to Nevada.
• Make 20 percent of university system funding competitive based on economic development outcomes.
• Create a job corps for people receiving unemployment insurance benefits for longer than 20 weeks.
• Modify the Millennium Scholarship to offset tuition costs for students concentrating in science, technology, engineering and mathematics who remain in Nevada.
• Create aggressive tax credits for startup companies in research and development similar to Utah’s Centers of Excellence Program.
• Create a modified business tax credit of up to 10 percent of total liability for any business that invests in a small business involved in research and development within the state.
• Establish a World Trade Center at UNLV or UNR and a state international trade and diplomacy office designed to focus on connecting Nevada industries to international markets. The group calls for creating an aggressive tax incentive for business exporting goods and services to emerging markets.
Let's not forget to pay laborers and carpenters $30 to $40 bucks an hour with huge pension costs. Otherwise, how can the Unions support their overweight Business Agents? Oh, sure, with foolish ideas contained in this article. Yeh, let's just raise taxes.
What a joke, go away Steve Ross and your overpaid Union loafers...
The ONLY THING the naysayers will see here are the 2 words "raise taxes" and it'll be a resounding "N FREAKIN' OH!!!"
After all, they have a motto to uphold:
"We cain't see the forest fer them thar trees!"
If you think just choppin', choppin', choppin' is going to turn this thing around, you are SADLY mistaken! (But, it's a simple word, any accountant can do it, and it's easier than thinking your way out of trouble).
Destory like 100,000 casino related jobs so that we can create 100,000 construction jobs to build things that we don't need.
Sounds like a game plan......that libs think...is the greatest thing on earth.
A lot of this makes sense. A giant bonding bill would be great for Nevada and help jumpstart our economy. Yes, we will be paying for it for awhile, but this is the time to invest in our infrastructure. The boulder city bypass, I-15 improvements, finishing/widening roads, building parks, etc. would increase quality of life and provide lasting benefit. Now that we've stopped growing, it's time to consolidate and improve what we have. If that means a dedicated tax for it, I'm all for it.
I thought that Gov. Sandoval said that he would veto ANY increase in taxes or fees. Why propose it if you know it will not have a chance of passing? (No veto proof majority in the legislature.)
We raise sale tax by 1% to put police officers in the street, we raise sale tax by 1% to hire more firefighters, now the construction industry want to raise taxes to be put in a fund for intrastructure projects. Well, I would like to raise taxes to stop unions from holding tax payers hostage for every problem that union cause because of outragious salary and benefits, but yet they continue to pay high union dues that goes to their executives. X amount is allocated for general projects and intrastructure repairs and projects. Money for these project also come from federal funds and other taxes, such as gas taxes. The tax payers pay enough taxes to cover repairs and upkeep of intrastructure and highways. The only way the economy is going to get back to a level of prosperity is by not taxing Americans but allow them to keep money to spend. If the unions can spend millions of dollar to support people like Harry Reid, why don't they fund projects around the city and the state of Nevada to will put their members back to work and bring a return.
They can't be serious. They benefited from the building frenzy that left Vegas with a huge inventory of empty homes and other buildings, and now they want to be bailed out? Sorry but people who can't even afford a place to live have nothing left to take.
Instead, let's push for mass government layoffs. That would actually make sense for downsizing. Government needs to get a lot smaller before We the People can get bigger.
"The paper bubble is then burst. This is what you and I, and every reasoning man, seduced by no obliquity of mind or interest, have long foreseen; yet its disastrous effects are not the less for having been foreseen. We were laboring under a dropsical fulness of circulating medium. Nearly all of it is now called in by the banks, who have the regulation of the safety-valves of our fortunes, and who condense and explode them at their will. Lands in this State cannot now be sold for a year's rent; and unless our Legislature have wisdom enough to effect a remedy by a gradual diminution only of the medium, there will be a general revolution of property in this state." -- Thomas Jefferson by letter to John Adams, 1819, from "The Works of Thomas Jefferson" Vol. 12
Last thing we need is more construction.
Now the construction workers want another handout. Could you possibly train for another job-I guess not. Duh!
Raise taxes to pay them to build what? More vacant homes and business properties? Yeah, this is a really sane solution.
I have no problem with construction work, but absolutely don't need more of it in this state. We need to diversify the economy, bring in new types of jobs, not continue down the same path that got us into this mess (focus on gaming and construction). I'd like to see a nice balance of professional, service, and construction jobs in this town/state.
Betting this is not going to fly far past out "No Tax" Governor.
I just watched the Union spend months working on Boulder Hwy. For every Ten people that where out there working five where standing around doing pretty much nothing.
The Union is pushing this. If they want to really fix things then come to the table with some real wage and benefit packages when you are spending Taxpayer money instead of the nonsense you work for now.
No Property Tax increases until Mining and Gaming pay their fair share. Then implement a State Lottery, Toll Roads and a Progressive Income Tax. It's time the Billionaires of Nevada pay their fair share and stop their whining.
As with any investments there is a law of diminishing returns. Some of these investments infrastructure probably make some sense, but the idea of returning to pre-recession levels for construction jobs is excessive. Many of these investments, such as schools, are no longer necessary. Some of these investments were never needed.
Yes, create more jobs so the construction industry can hire more illegals.
We recently had our house repiped from a class action lawsuit on this PEX pipe. Not one of the workers was an American or could speak English.
Not only that, but the inspector didn't even come into our house, but he did sign off on the job. I was furious!
Yes, let a state lottery pay for it. Get the casinos out of politics so we can have one.
Stop hiring illegals!!! Your industry is full of them...Then your words might have some validity...
Lower taxes, raising taxes only means that they will start spending like drunken sailors again...
Tax and spend.....What a joke! Live within a budget like everyone else has to do!!!! You don't have the money.. DO NOT SPEND IT!!!!
Maybe they should consider that the previous level of construction employment was not sustainable, and a lot of people that previously worked in construction need to find a new line of work.
So let me get this straight. The housing industry in Las Vegas is a nightmare. There are thousands of empty homes dragging down market values. The lack of building control led to investors swarming in the market and take there profits and run. The solutioton is to raise taxes, which will drive small business owners, that have been hanging by a thread, to allow the gluttons to raid our city, and line their pockets in the name of jobs, of which thousands will go to illegal aliens. (Run on sentence because it is so fn funny)
By the way anyone who has a brain or a clue, go look at states that controlled growth and you will see recovered or mildly strained economies, stable home values, and lots of jobs. the housing market single handedly destroyed the local economy. The stupidity of this country never ceases to amaze me.
The infrastructure is an excuse for a specific business class to get rich at the expense of taxpayers. These will always be temporary or short term solutions as growth exceeds the housing industry by a thousand miles.
Better yet let's run these clowns out of town and control our growth. Eliminate the inventory. Provide incentives for small business owners to hire people into permanent jobs. Then reduce government by consolidation, modernization, and intelligence. Anyone who has ever gone into a govenrment run divisionwill see the most antiquated business model that is so outdated companies don't want to come here. I could write a book on how to improve the economy, but it will never start with raising taxes, but with actually placing a premium on education of which Clark County is horrendous. Two companies refused to locate here because of a lack of college graduates. Go figure. The liberals always reward the ignorant, the uneducated, the kidthat made his bed, but will never have to lie in it. Start rewarding educated workers with jobs to set an example. Education is meaningless in Las Vegas. How embarrassing. I am the third of five generation native Las Vegans in my family. I have watched a beatiful city go to ruin led by the corrupt politicians, the greedy, and the ignorant.
The mining industry needs to be taxed much more. Much of the copper ore is being shipped to China and the producers can easily afford to pay more mining taxes.
"...A lot of people that previously worked in construction need to find a new line of work."
BRAVO!
And as for the calls for a state lottery -- NOOOOO! Talk about your *regressive* income taxes, the lottery is the very worst.
Some of the proposals here are better than others, for example: a state international trade and diplomacy office. We should piggy back and get in on the president's push to increase exports. As So. Nevada is beginning to attract manufacturers, we need to eye foreign markets where most of the growth is taking place.
But some of the proposals here are lu-lus.
WAKE UP AMERICAN WORKERS.
Fortunes of many American companies and investors use to be closely tied to American workers and consumers. However, this is no longer the case. Many of the financial elite have become increasingly less financially dependent on America. This decreased dependence has widened the schism between the have and have-nots and pushed some of the non-wealthy to the brink of obsolescence.
I agree with Ronster, too. We can retrain, but if we are not securing the jobs and a level playing field for the American worker, we'll ALL be out of work. You can't even afford the schlock from Walmart if you don't have an income. The bell tolls for thee!
ah yes...the first comment is from our old liberal buddy, gmag.
how is raising taxes...which leads to less money for investment...going to create jobs?
you're as dumb as the hammer that guy is swinging in that photo.
look...vegas is built. it's done. there is already WAY more office space than there needs to be, more homes than will probably ever, EVER get sold, and no resort is doing any real building for at least the next 2 years if obama gets the boot and 6 more if he gets re-elected.
Who is society?
We are.
"Man can be permitted to exist only in order to serve others. He must be nothing but a tool for the satisfaction of other's needs. Self-sacrifice is the law of our age. The man who refuses to submit and to serve is a man who must be destroyed." - The Fountainhead
We need jobs -- we need your sacrifice -- we need your money -- we are The Building Jobs Coalition, we know what's best for us -- we're not asking, we're demanding your sacrifice and seek legislation to assure it.
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Seriously, this is a joke, right.
Massive layoffs in the construction and architecture industries are okay with me. I hope those jokers who designed City Center never work again.
This is ridiculous. You cannot build forever. This valley has enough empty homes and business spaces. This has got to be a joke!
Its time for a 24 month freeze on new building projects. This will allow the market to stabilize. This will allow time to put procedures in place to bar the criminal invaders from taking jobs in Nevada.
Now, what the construction trade has offered appears reasonable, but they have NOT ADDRESSED the millions of ILLEGAL WORKERS that are adversely affecting our state's and country's economy. How about we EMPLOY LEGAL CITIZENS FIRST!
NO, NO, NO. They will NOT talk about the millions of illegal construction workers. They simply avoid the subject altogether. Their "plan" should start with that first!
Great idea ..let's raise taxes and hire the construction workers to TEAR DOWN these thousands of empty homes that dot the valley!
I know it sounds callous but VegasEngineer is correct. Those 90,000 lost jobs aren't going to be back anytime soon. Infrastructure is great but the state should do only what it needs to do. We shouldn't be doing projects just to "create jobs."
Government has no business trying to "create" jobs unless you think government "is" the end-all and do-all of support for the American people.
We became a prosperous, powerful nation because our government "allowed us the opportunity" to excel. We were inventive, hard working people who produced value from raw materials or provided services. Our government stayed out of the way.
That has slowly turned around, and we have allowed it to happen. We take more and more from the producers to give to the non-producers and by doing so, we are taking incentive away from doing business as well as the incentive to work.
How long does a thinking man wait for his industry to make a comeback? Do we have to starve or resort to handouts before we try to save ourselves? I was in the construction industry for 27 years when I decided to change my career path. I had to take a couple of jobs that quite frankly sucked but in the end, I am in a better position after making that decision and I'm not looking back.
Hey, gmag39: Since you are a proponent of higher taxes, how about you and some of your like-thinkers get together and start sending weekly checks to the Nevada Treasury from your personal checking accounts---AND LEAVE OUR MONEY THE HELL ALONE!
Let's see, raise the taxes on the gaming industry so that we can try to drive away the rest of the high rollers and make gaming in the other states look better to players. Implement a lottery so that we can take a bite out of the low income people who really need to spend their money elsewhere. Granted, at least the state gets to keep a bigger chunk of the wager with the lottery. A nice progressive income tax so that those billionaires can pack up and move somewhere else, taking their spending with them. Sounds like a heck of a plan. That's a lot easier than wondering if we really needed to explode the state budget by 60% in a couple of years in the mid-2000's. If the budget had grown relative to inflation and population growth through the 2000's, we would have had almost no deficit in 2009-2010. But folks saw extra revenue and it had to be spent. And if we raise taxes, you can be sure that at least some of it will be used for increasing spending now or in the future. At least that is what history should teach us.
Im no forensic scientist,BUT just the picture of the framer is the REAL problem in this town
look closely everyone,and you will see what im talking about
GUARANTEED that im not speculating either,so save your comments
peace out
Way to go, Richard! But you have to understand that lefties are always willing to spend money on their pet projects and agendas, as long as it's someone else's money. You know: the rich, the gamers, the miners, the tourists, the FILL IN THE Blank _____, but never themselves. They believe there is such a thing as a "free lunch" and that money coming from Washington doesn't cost us a dime! Morons when it comes to financial matters! BTW, I am all for fixing the infrastructure but not for raising taxes to do it. While the construction industry might benefit, all others would be unfairly hit in the wallet and that could put many out of business or out of work.
Real bright there, Jerry. Beating your chest about how "there is (no) such a thing as a 'free lunch,'" then going on to state "I am all for fixing the infrastructure but not for raising taxes to do it."
Gee, Bright Jerry, I guess your tooth fairy is going to come up with all those billions for infrastructure.
Those thousands of construction workers without jobs need to move elsewhere. I can see the State spending on infrastructure maintenance from within the current budget but NO NEW TAXES on Nevadans.
I DONT WANT TO PAY MORE TAXES WHETHER PROPERTY, SALES OR AUTOMOTIVE REGISTRATION SO THAT OVERPAID CONSTRUCTION WORKERS CAN WORK.
The city is overbuilt whether residential or commercial. Construction workers need to move where there is construction jobs. Not much in here, time to move on. They came here by the thousands, they need to leave by the thousands.
I agree that we can't just go out and 'build stuff' in order to be 'making work.' And I hate taxes, too. But the private sector won't be expanding (or hiring) significantly for some time. There actually are some things worse than paying a tax, by the way. Having the local economy fail and dry up like a boarded-up Midwest ghost town is one of them. Meanwhile, we have decrepit sewer lines throughout the older parts of the city, bus stop cut-outs (to improve traffic flow and safety) to be made, a ton of single-family homes that really should be weatherized, etc., etc.
Am I saying we draw up a wish list and then everybody gets everything? NO. But their are LEGITIMATE infrastructure investments that will pay us dividends down the road if we roll up our sleeves now, instead of waiting until it's too late and we have crises on our hands. And in the meantime, people can be put back to work and taken off the welfare rolls.
Besides, even if we do NOT launch any infrastructure plans, our state budget AS IS is running deep red ink. Nothing is off the table, folks. Including taxes. Serious people acknowledge this.