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Sunday, Feb. 12, 2012 | 2 a.m.
Somewhere between Gov. Sunny’s radiating optimism and the Nevada Policy Research Institute’s scathing indictment lies the reality of the state’s new economic development plan, which is replete with clichés and promises yet leavened with kernels of wisdom that could grow into something substantive.
Alas, the plan, released last week, is most noteworthy for what it does not contain — a plan to invest in higher and lower education — than for anything it does. This is an essential omission, which overshadows an essential admission from Gov. Brian Sandoval — remember this well — that the state’s tax base needs to be expanded.
“Our economic model has historically relied heavily on consumption-based industries,” the governor writes in the 57-page plan. “As a result, the recent Great Recession hit us harder than any other state.”
Exactly. As many had foretold for years.
But before Gov. Sunny is allowed entrance to our Cassandra Club, let me be clear: This is a document of unrelenting optimism, with more references to stakeholders (can we put a stake through that word, please?) than can be easily digested without mistaking it for a printed emetic.
(You can read it here.)
“Moving Nevada Forward” is a blueprint for diversifying the economy by creating Regional Development Authorities that would focus on the endemic characteristics of areas of the state, targeting seven industries and providing guidance and money to businesses that fit certain criteria. Or, as the conservative Nevada Policy Research Institute, deploying harsher rhetoric than it ever unloaded on any Democrat by labeling the governor a collectivist, called it: “a roadmap for crony capitalism and would lead to less productivity and less growth” and labeled the Republican governor a collectivist.
NPRI is worried the approach will result in the state picking winners and losers in specific industries, creating the possibility of favoritism and even corruption. I am more concerned that the state will choose only losers, set up to fail because Nevada has not invested in the intellectual infrastructure really needed to diversify the economy beyond the current sectors.
It may be fine to target tourism, clean energy, health care, mining, information technology, logistics and aerospace — expand the old and bring in the new. Makes some sense, NPRI’s concerns notwithstanding, although perhaps the list could be broader.
But if you set the bar low, you will continually hit your head on a ceiling that could be so easily elevated. You can’t have the discussion of diversifying the economy without talking about how to attract businesses and encourage enterprises to expand by having a world-class (or even regional class) university system and a lower education system that residents can be proud of and not try to avoid.
I fear that beyond the governor’s enviable and sincere optimism and the unquestionable competence and energy of his economic development point man, Steve Hill, that Nevada is once again not reaching for the stars but remains content to remain in our own, limiting atmosphere. It reminds me of lawmakers talking about someday getting to the national average — national average! — in education funding. Yes, let’s shoot for average here, too.
The answer is right there in the document, too, under an admirably acknowledged list of liabilities, which include: “Existing workforce skills not in alignment with job prospects,” an “underperforming educational system” and “State image does not reflect breadth of opportunities.”
These are not unrelated. The workforce demographics, the poor K-16 system, the state’s abysmal reputation are all manifestations of the silo-like way these conversations have always occurred — and appear to be again. It is a fool’s errand to talk about changing the fundamental nature of Nevada from a gaming and mining state to one that is rich in many, variegated businesses without talking about making the education system a magnet to pull in new people and new enterprises.
I’m sure Nevada could become a honeycomb of call centers, boiler rooms and warehouses and that would be diversifying the economy. But how about aiming a little higher, especially since gaming is not investing here and mining sends much of its money out of here?
Are we going to bring in all of these new businesses, lavish money on them and then ask them to pay nothing for the privilege? Businesses pay a pittance into the state treasury as it is, and if the governor knows the tax base needs to be broadened, why isn’t that in this plan?
Bribe them but don’t charge them? That sounds like Moving Nevada Backward.
There’s still plenty of time. And to its credit, the plan insists on accountability with various metrics set to measure achievement. Sandoval has said he wants 50,000 jobs by 2014, a seemingly arbitrary number plucked from an arbitrary 1.5 percent growth rate and with no requirement as to the quality of the jobs created.
But I would still rather have Gov. Sunny’s outlook than NPRI’s. Just give me a reason.
"...and mining sends much of its money out of here[.]" - Jon Ralston
Jon, why don't you use your "bully" pulpit to help change this? You have gained considerable notoriety lately (CNN's words, not mine.)
This govenor is gibbons with a new suit. I think he is just playing a game to make himselflook good until he can wrangle another federal position. My guess is he is counting on a right wing victory in DC and his name has been mentioned for a position in the ( and this is a far reaching idea he has) next administration. He hasnt finished a term in previous positions. So I wouldn't count on much this time.
You are absolutely right in your assessments, Jon.
The Governor is definitely a CAREER politician. His lust for position and power are evident. He is a man with no plan, hypnotizing many voters with his style of smoke and mirrors.
Governor Sandoval can say what the problems of Nevada are, but has consistantly fallen short of clearly providing any plan on how to address and solve them...details are always lacking. Maybe he doesn't want to implicate himself or be responsible as a leader, GEZ.
It is sad to say, that each and every time Governor Sandoval comes out of woodwork from hiding, and talks, there is never a plan clearly spelled out. Never. We have come to expect that.
I just pray that voters will wake up to all this. A person can only hope.
Blessings and Peace,
Star
Gov Sunny, how about govt.02? He will be the VP nominee, so he is irrelevant as a GOV. He went on foreign trips to give him so foreign policy cred.
A new pair of sunglasses could be a reason and blisz.
We do not have an income problem we have a spending problem. "Invest in education" is most often a euphemism for pay off the teachers unions.
If you mean invest in better classroom supplies/support, immediate massive layoffs in bloated maintenance personnel, removal of administrative layers, cutting administrative positions/staff/costs, less PC waste clogging our curricula, more effective personnel rules allowing incompetence in ANY education position to be progressively culled out, more effective ways to screen/hire/train teachers, and then finally some additional teacher compensation you may you have something.
Oh yes, and:
Along the way remove the PC educrats who dominate teaching colleges and replace them with people dedicated to producing properly educated teachers. Some of the folks coming out of so called teacher colleges are so ill educated that they have to receive their basic education on the job and all to the children's expense.
Yeah, lets blame the Governor for all of our state's ills. Uh, I believe he became the Gov during this recession and inherited a lousy economy and a lousy housing market and a lousy job market. Now, how about taking a moment to ask yourself how much Harry Reid has done for Nevada in the Senate. He is quite powerful, so why doesn't he do anything to help his state? The Governor needs time; Sir Harry has had time and has done nothing. Sure is easy to criticize, so if that is what all of you comment writers enjoy doing, at least aim your criticism at the right target.
Excuse me here but what this state is best known for is its corrupt government at every layer from local councils to the Governor's Mansion.
Why would a legitimate business enterprise want to enter a state where you have to buy every politician just to get an even break?
The greatest negative baggage Nevada carries is its constant, scandalous stench of corruption from all levels of BOTH parties.
"Nice", honest people and businesses just do no want to live in a sewer of corruption.
@Jackpot. Harry Reid is a US Senator. He has no responsibility for the state government. He can benefit Nevada only with Federal programs. Reid has no say over the state budget.
Brian Sandoval is responsible for proposing the state budget. He is the one who proposed massive cuts in spending, and attempted to sweep excess funds from counties to balance his budget. He only agreed to extending the sunset taxes when the state supreme court ruled that he couldn't take those funds. Sandoval doesn't support changing the mining tax cap in the state constitution.