The State of the State Gov. Sandoval should deliver

By Jon Ralston

Sunday, Jan. 23, 2011 | 2:01 a.m.

Fellow Nevadans, the state of the state is not good. Friday’s unemployment numbers show we ended the year on a new high and that makes it a new low. The time for talk is over. The time for posturing is over. It’s time for leadership — and it must start here.

Frankly, so far the dialogue has not been what I had hoped, and I accept some of the blame. Democratic leaders in the Legislature have said the budget deficit is close to $3 billion and cannot be bridged by cuts alone. Yet, they are silent on taxes, as if the gap can be filled with hollow promises.

But, truth be told, I should have been saying more than the same mantra used by my predecessor. “No new taxes” is not a solution but a slogan. Don’t misunderstand, my fellow Nevadans: I believe in the sentiment behind the slogan, and I am convinced now is not the time to raise taxes on struggling businesses and families. But one phrase is not the be-all and end-all of my vision for the state’s future.

Nor did I mean to suggest that I will turn a deaf ear to other ways to balance the budget, that I will refuse to listen to any alternatives. As Bill Raggio, one of my mentors, has said, we need to be flexible because circumstances can change. And tonight, I also summon the spirit of another mentor, the late Kenny Guinn, who always took the long view, tried to compromise and nobly absorbed abuse from fierce partisans on both sides.

Tonight I hope we can start anew. A new generation of leadership has taken hold of this state — Senate Majority Leader Steven Horsford, Assembly Speaker John Oceguera and I are all relatively young. Working together, I think we can bring a fresh, energetic perspective to the state’s myriad problems. It’s not about Democrats or Republicans or North or South. It’s time for a new way, and I want to lead the way.

I am going to make many promises tonight, fellow Nevadans, and I hope you grade me on my willingness to turn them into action. This will be the most open administration in state history — everything we do will be transparent and I will open myself up to the media and thus to the public more than any governor ever has. Watch and see. I have also brought some of the best policy minds in this state into my administration — Dale Erquiaga and Dana Bennett know as much about how this state works as any two individuals. And I also hope to rely on many private-sector experts to help us forge compromise.

As for my budget, the nuts and bolts are well known by now. It is a $5.33 billion package. But rather than an endpoint, I hope it will be a starting point for discussion. I am not perfect. It is not my way or the highway — I want to put this state on a fast-track to success but there are 63 fellow travelers here and I want them along for the ride.

I have balanced the budget without raising taxes, and it has been the most painful professional experience of my life. It has opened my eyes to some of the real problems confronting this state. I have cut state worker salaries. I have sliced higher and lower education budgets. I have forced people off social services. I have demanded local governments help balance the budget by giving the state money and taking services that better belong at that level.

That is my way. But as much as I thought I owed it to the voters who elected me to keep my campaign promise of not raising taxes, I now owe it to all the people of this state to open my mind to other ways. The only way to move this state into a new way of thinking is through a collective effort. So beyond my stark budget proposal, I call on lawmakers to hold hearings not just on my ideas but also on others to cut the budget.

But — and this will surprise some people — I also want them to consider the various revenue proposals out there in an open, constructive way. And I will be listening. Bring in mining executives and have them explain why they cannot help the state. I will be listening. Bring in gaming executives and ask them the same questions. I will be listening. And for years we have heard about out-of-state corporations getting a free ride in Nevada. As governor, I call on executives of Wal-Mart and other megacompanies to testify before the Legislature and explain why they should not share in the sacrifice. I will be listening.

What’s more, if I am persuaded, I will make it my job to explain to the public why I have changed my mind. People are not stupid. If given the facts, they will listen.

But it’s up to those on the other side to listen, too. Lawmakers should have thorough and thoughtful hearings into reforming the public education system, as I will suggest tonight. They should have thorough and thoughtful hearings into the devastating drain public employee pensions could have on the state, crippling our ability to succeed. And legislators should have thorough and thoughtful hearings into state and local government pay — and I hope state and local government employees will participate. We do not see you as the enemy.

Most of all tonight, we need to talk about fixing this state’s economy and creating jobs — and not just in the short term. Everyone talks a good game about diversifying the economy and developing new business for the state. I said it during the campaign.

But I have taken to heart what many in the education and business communities have said to me about investing in education as a gateway to enticing new businesses to come here. If we don’t have a viable, respected K-16 education system, that gate will never open. I still believe that we need substantive, systemic reforms to how we teach our kids, and dramatic solutions — from vouchers to merit pay — have to be on the table. I believe the higher education system can have more autonomy and should have the option to raise its own tuition and fees. But I am open to suggestions. I will listen. I just hope those who criticize my proposals will not close their minds, either.

I know the pundits deride my underlying approach to my tenure, but optimism is the foundation of courage. And I remain optimistic about this state’s future. I hope beginning tonight, after my monologue ends, we can start to have a dialogue that will be provocative and productive. No more slogans, no more reflexive partisanship, no more eleventh-hour, half-baked solutions to complex problems.

I’m listening. I hope everyone else will, too.