Governor Sandoval Speaks to State on Budget

By: Staff Email
By: Staff Email

CARSON CITY, Nev. (AP) - Nevada Gov. Brian Sandoval renewed his
call Tuesday for shared sacrifice to pull Nevada out of its lagging
economy, saying that while signs are improving, "we still have a
long road ahead."

In a televised address from the Governor's Mansion, the first
term Republican defended his no-tax-stance and urged support of his
$6 billion budget proposal.

Businesses, he said, "cannot afford a tax increase or further
intrusion by government."

"We must make responsible decisions, spend within our means,
and leave something better for those who follow," Sandoval said.

In a written statement, Democratic leadership thanked the
governor for "keeping Nevadans informed as we go through this
budget debate."

Highlighting the good news, Sandoval said sales tax, payroll tax
and other economic indicators are improving, and that new business
prospects during the first quarter more than doubled from last

His speech came the same day Democrats on Senate and Assembly
money committees voted to reject $650 million in education cuts
proposed by the governor, creating a massive budget hole.

Democrats have scheduled a briefing Thursday to outline their
budget options.

On Monday, the Economic Forum projected Nevada will take in
roughly $270 million more in tax revenues in the upcoming biennium.
Sandoval said he will commit $242 million of it to education and
urged that it be used to restore full-day kindergarten and class
size minimums. Another $20 million will go to the university

"We can direct millions of dollars to restoring nearly 95
percent of the reductions to basic classroom support," Sandoval
said, "or we can overreach, without changing the way we do
business and without regard to the long-term economic impact of
short-term spending."

Sandoval also renewed his push for education reforms, some of
which have been embraced by Democrats, saying money alone won't
improve Nevada's worst-in-the-nation graduation rate.

"Nevadans want ... a better return on their investment," he

Democratic lawmakers argue the governor's budget falls $1.2
billion below what's needed to adequately fund education and
critical social services.

While Democrats control the Senate and Assembly, they lack the
majority needed to raise taxes or override a governor's veto.

Sandoval said with the rosier tax projections and higher than
anticipated federal funds for Medicaid programs, he has added back
$440 million to his original budget released in January.

"The proposed budget is reasonable, reflective of the times and
responsive to the sacrifices already made by so many in the private
sector that must now be shared by those of us in government," he

Sandoval urged lawmakers to pass a budget by June 6, when the
2011 session will end.



My fellow Nevadans, good evening.

Three months ago, I delivered a State of the State Address against the backdrop of

record unemployment and sharply reduced state revenue. I believed then, as I do now, that by

controlling state spending and changing the way we do business, we could bring about a

sustained economic recovery that would get Nevada working again. And so tonight, I’m pleased

to come before you with a second and more positive report on the state of Nevada’s economy.

As a matter of both principle and necessity, Nevada’s government should function like

Nevada’s families live. We must make responsible decisions, spend within our means, and leave

something better for those who follow. We must be courageous, making the hard choices today

that will avoid even harder choices tomorrow. We must prioritize what matters most.

The times demand we work together. Serve together. Sacrifice together. Only in this

way will we succeed together. And so I have asked the collective Nevada family to gather again

this evening to share my thoughts about our future, as well as what I believe must happen in the

final weeks of this legislative session.

Tonight, I am able to report that the economy is improving. We are not out of the woods

yet, but there are signs of recovery. Yesterday, we received the final revenue forecasts that will

guide us to the adoption of a new state budget. As a result, we have approximately $270 million

in new state revenue

news with optimism and determination, as I’m sure all of you do as well.

But it is not the only good news we have.

In March, Nevada businesses created over 10,000 new jobs

over three years. Our unemployment rate has dropped from 14.9 to 13.2 percent. Let me be

clear: I still find this rate unacceptably high. Even so, we are making progress that must


an early sign that the economic recovery is taking hold. I welcome this

the first signs of growth in


Sales tax payroll tax, and other important economic indicators are on the rise. The

Nevada Commission on Economic Development reports that new business prospects have more

than doubled in the first quarter of 2011, when compared to the same time period last year. As

one example, tomorrow morning I will take part in a press conference announcing a major new

employer who will break ground on a facility in Northern Nevada. With the construction on this

project and the permanent jobs being created by this company, more than 650 Nevadans will

return to work.

In response to all these trends, we have been able to re-invest in our state. Six weeks

ago, we added back over $120 million to our state budget. And just last week, another $50

million was reinvested in critical programs. Statewide, we have restored funding for autism, elder

protective services, mental health, and community nursing.

As your governor, I have a fundamental belief: you have the right to know the truth about

our economic situation. We must therefore acknowledge that we still have a long road ahead.

Even with the new revenue I have announced tonight, overall spending reductions remain

substantial. Our state simply cannot afford to deliver every program our people have come to

expect. I struggle with that fact every day.

I want to deliver more for Nevadans, not less. And I know that the way to get there is to

strengthen Nevada’s dynamic economy. I firmly believe that sacrifice today, will ultimately yield

prolonged success, tomorrow.

And so tonight, I’m pledging that nearly $270 million in new revenue will go directly to

public education. Our kids come first. On that, there can be no debate. I have asked the

Legislature to restore funding for class size reduction, all-day kindergarten, classroom programs,

and extracurricular activities like music, sports and theater. I have also allocated $20 million for

our colleges and universities.

Some will say this is not enough. Yet they offer no plan for how to find additional money

without harming the fragile economic recovery we now know Nevada is experiencing.

The bottom line? We can direct millions of dollars to restoring nearly 95 percent of the

reductions to basic classroom support. Or we can over-reach, without changing the way we do


business, and without regard to the long-term economic impact of short-term spending.

Nevadans deserve better than that.

We all share a passion for delivering the best education for our children. My daughters

attend public school in Washoe County. This is as personal for me as it is for you. I’m a proud

graduate of the University of Nevada, Reno. I want our universities and colleges to remain

sound. But I also know in my heart that education isn’t just about the money. What matters most

is NOT how much we spend on education, but how well we spend it.

To me, education is not about ‘the system.” It’s about the students

and the learning environment they cultivate and share. It’s about opportunity and hope and

confidence in their ability to compete.

Nevadans want

our students and teachers to change the failing culture that has become all too pervasive in our

places of education, Nevada’s graduation rate remains the worst in the nation. Thousands of our

students under-perform in virtually every academic subject on every possible test. The input

does not match the output. Reforms must be part of the picture if we hope for the day when

Nevada’s students out-perform the rest of our country.

I have asked the Legislature to consider a complete package of reasonable education

reform measures

of our best teachers simply because of an outdated, and hopelessly out-of-touch rule, that

requires “last in, first out.” Under this system, award-winning Teachers of the Year can lose their

jobs, simply because they don’t have as many years in the system as someone else, who may

not be as effective in the classroom. That’s unacceptable. We should pursue, keep, and reward

the best teachers... not cast them aside because, well, “that’s just how the system works”

The proposed budget and reform plan will also provide more local control by giving each

school district the authority to set its own priorities, and eliminating rigid state mandates. Why

would we continue to force a “one size fits all” policy on our students and our educators? Every

school district is different; every student is different.

the teachers


and indeed deserve

a better return on their investment. We owe it to

from performance bonuses, to ending the practice that forces lay-oHs of some


No matter where we stand on the question of more funding, we must stand together on

the need for reform. We can debate the approach, but we cannot delay the objective.

Even with the addition of millions of dollars in new revenue for education, there are still

tough decisions to be made. I am therefore asking the Nevada Legislature to establish

benchmarks or priority triggers” that will ensure future revenue gains are directed to schools,

colleges, and universities over the next two years.

It’s pretty simple: we will agree now that as revenues increase we will direct that money

straight to education. Just as the most recent economic projections came in higher than many

expected, there will be continued growth, and we should therefore trigger new revenue directly

into the classroom.

Imagine what we can achieve if the Legislature acts on my proposals: In just a few short

weeks, we could invest almost $270 million in education, set triggers in place to spend future

revenue on the education of our children, move decisions back to the classroom where they

belong, bring common sense to our hiring practices, and begin to remove the obstacles to

opportunity that confront too many of our students.

This is just the beginning. When the Legislature meets again in 2013, I’m confident we

will be able to have a very different conversation about the funding of our schools

matter, all of state government.

Why am I so optimistic about Nevada’s economic recovery?

As I said at my inauguration, optimism is the foundation of courage. I draw strength from

the very real and positive economic indicators we have seen recently, because I know they are

only the beginning. Building on these early signs of economic recovery, we can, and will, get

Nevada working again.

With the cooperation of Democrats and Republicans alike, we have proposed a complete

overhaul of Nevada’s economic development infrastructure. I’m hopeful that we can pass this

legislation, because I know it will be an important part of the future roadmap for diversifying our

economic base and fostering new industries to take root here.

and for that


But I also know that government alone can’t create the kind of job growth we need.

Business, particularly small business, is the engine that will drive economic recovery. And yet, as

I visit Nevada firms, I see row after row of empty desks where workers once sat. I see empty

warehouses. And I see Nevadans doing their level best to adapt to our changed reality.

These businesses cannot afford a tax increase, or further intrusion by government. They

should not be asked to choose between paying Carson City’s bills, meeting their own payroll, or

hiring that next unemployed Nevadan. These businesses, their employees, and the unemployed

are the Nevadans I think about at night, just as much as I think about those in need of social

services or those teachers who are working hard in our schools. We are one family

on this journey together.

Nevada has a long tradition of resiliency

recovery. When times are tough, we set aside our differences and come together as one state,

one community, one people. I believe we are yet again at that stage, when unity of purpose will

move us forward. Now is the time to reform our educational system, support job growth, and

pass a realistic, fact-based state budget that invests when and where it can without harming our

fragile economic recovery.

I know these last three years of economic recession have been difficult. Many still cannot

see recovery on the horizon. But I also know Nevadans, and we will not give up. We will not

allow our differences to triumph over our responsibilities. It is now, in the final weeks of this

legislative session, that we will rise to meet the challenges of our time.

We can do this, but only if we do it together.

With the measures I have described tonight, a total of $440 million will have been

reinvested in essential state services and programs since we last met at the State of the State.

The proposed budget is reasonable, reflective of the times, and responsive to the sacrifices

already made by so many in the private sector that must now be shared by those of us in


We can’t tax our way out. We can’t cut our way out. But we can, and will, grow our way


and we are

a history of innovation, adaptation, and


Tomorrow’s economy may be different, but it will also be filled with new opportunities.

And these new opportunities are already beginning to appear. Family by family, business by

business, neighborhood by neighborhood, Nevadans are getting back to work. Our economic

engine, dormant for so long, is beginning to show signs of life. State revenues have increased,

and they will continue to do so.

We must now establish priority triggers for more education spending. We must ensure

that education reforms build a new system focused on student achievement. We must adopt a

state budget that will fuel the fires of job creation and economic prosperity for all. And we must

do it by June 6th --the Constitutionally-mandated time for this legislative session to end.

Most of all, we must do it, not because it’s popular, but because it is right.

If we do all these things, we will pass together through this time in our history, confident

that Nevada’s best days are yet to come.

Thank you, God bless you, and God bless the great state of Nevada. Good evening.

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