LATEST NEWS

The Guinn Center for Policy Priorities will be publishing regularly a “Legislative Update” to help inform readers about activities and actions during the 2015 session of the Nevada Legislature. In our nonpartisan manner, we will (1) summarize committee hearings and actions, and recap floor actions in both houses, (2) provide an overview of the upcoming schedule, (3) highlight upcoming events such as deadlines, addresses, joint meetings, hearings in Las Vegas, Guinn Center testimony, as well as (4) offer some tips and observations along the way.

Federal spending in Nevada, which amounts to 17.7 of the state’s Gross Domestic Product (GDP), is slightly below the national average of 19 percent, ranking the Silver State 30th among the 51 states and District of Columbia. Nevada ranks lower, however, in both the total amount and per capita Federal spending at 36th and 48th, respectively. Those and other comparisons are found and derived from a recent report by the PEW Charitable Trusts based on Fiscal Year (FY) 2013 data (the latest available).

While Nevada has the second highest number of acres of federal land in the country, it receives less Payments in Lieu of Taxes from the federal government than other, more populous states. The purpose of the Federal Payments in Lieu of Taxes (PILT) program is to help local governments offset the loss of property tax revenue due to the presence of tax-exempt federal lands within their boundaries. The Tax Expenditure report recently released by the Department of Taxation shows that the value of this exemption was $258 million in fiscal year (FY) 2013 and $280 million in FY 2014.

With more than 80 percent of Nevada’s lands under the control and management of the Federal Government, land transactions often require congressional acts for approval. This process can be complex and time consuming involving lengthy discussions between Federal, state, local government, and private industry officials and individuals. Various special acts of Congress have been required and authorized over the years to dispose of Bureau of Land Management (BLM), United States Forest Service (USFS), and other federally owned land in Nevada.

Nevada’s Governor and Legislature have placed a high priority on diversifying Nevada’s economy with high technology industries to help grow the economy and minimize the impact of future recessions. This week, Ashima, a manufacturer of unmanned aerial vehicles, announced that it is planning to move its headquarters from California to Reno, Nevada. The company aims to have 400 workers by 2018.

Another new release from the U.S. Bureau of Economic Analysis provides prototype statistics of quarterly gross domestic product (GDP) by state for the years 2005 through 2013. The numbers furnish a more complete picture of the ups and downs, and turning points, in economic growth at the state level. The statistics include both current dollar and inflation-adjusted (2009) dollars for 21 private industry and government sectors within the states.

On August 15, 2014, the Nevada Department of Employment Training and Rehabilitation (DETR) announced that Nevada’s unemployment rate for July 2014 was 7.7 percent. The good news is that Nevada’s unemployment rate has been steadily declining since the high of 14.4 percent in 2010 (see Figure 1). However, the standard, official unemployment rate leaves out many discouraged workers who want and are available for work, as well as workers employed part-time for economic reasons. Taking these factors into account, Nevada’s unemployment rate climbs to 17.4 percent for the period of Q2 2013 through Q1 2014.

A new report from the U.S. Bureau of Economic Analysis shows that consumer spending in Nevada was deeply affected by the Great Recession. While this measure has improved in recent years, per capita consumer spending is still below pre-recession levels. Consumer spending is measured through an indicator called personal consumption expenditures (PCE). This data provides insight into consumer activity, along with household economic health and spending patterns.

Forecasting revenue is the first step to crafting a new state budget. Nevada recently earned praise for its revenue forecasting practices in a new report by the Center for Budget and Policy Priorities (CBPP). This report argues that transparent and inclusive revenue forecasting processes can lead to a more democratic debate and greater fiscal discipline.

In March 2014, Douglas County, Nevada won the Cashman Good Government Award for developing innovative budget solutions through priority based budgeting. As with many local governments in Nevada, Douglas County faced a significant structural deficit after the Great Recession. To address this deficit, Douglas County embarked on a priority-driven budget development process that included public input. Through these efforts, Douglas County was able to reduce its structural deficit and improve its bond rating for the first time in 10 years.

While economic data show promising signs of recovery from the Great Recession throughout the country and in Nevada, a new research brief from the Urban Institute and Consumer Credit Research Institute provides another indicator of why the Silver State continues to lag in its efforts to rebound from those difficult times.The Numbers

Following the release of Annie E. Casey’s Foundation’s 2014 Kids Count Data Book, much attention has been directed to the fact that Nevada ranked 50th in education for the third year in a row. Given the data cited, we cannot be surprised by the fact that Nevada ranks dead last in education.First, Nevada has the highest rate of high school students not graduating on time – 40 percent in 2011-12. Nevada’s rate, the highest in the nation, was 17 percentage points higher than any other state, and twice the national average.

Across the country, placement tests are often used to determine which students must take remedial math and English classes. In many cases, students who performed well in high school are shocked to find that they are unprepared for college and must take remedial classes before taking college-level classes. A national study by Complete College America showed that students placed in remedial classes are less likely to complete college-level math and English classes and are less likely to graduate.

Access to high quality preschool can have significant academic, economic, and even health benefits as documented in the Perry Preschool Study. In recent years, several states have either substantially increased state preschool funding or have begun to offer universal preschool programs to help increase children’s chances for long-term success. Nevada, however, lags significantly behind other states in providing access to preschool for many of its young learners.

Across the nation, state funding for higher education fell during the Great Recession. A new report by the nonpartisan Center for Budget and Policy Priorities (CBPP) found that states are still funding higher education below pre-recession levels. This public disinvestment has made college less accessible to students and has major long-term economic impacts.

The Guinn Center appeared yesterday on Ralston Reports to address, among other topics, Ralston’s question of the day: “Is a flawed business tax to fund education better than no tax at all?” Essentially, Ralston asked the Guinn Center and his viewers to weigh how the tax functions against what the tax is meant to do (direct money into our K-12 education system so that we can improve educational outcomes for the young people of Nevada).

A recent study found that an innovative peer support program improves access to care and quality of communication while reducing repeat hospitalizations, which can reduce costs. Experts at the Perelman School of Medicine at the University of Pennsylvania have developed an effective and innovative program using trained lay community health workers to improve a range of outcomes among patients at high risk for poor post-hospital outcomes.

Joining a growing number of businesses focused on mission-related investing, UnitedHealth Group, the nation’s largest medical insurer, has recently invested $150 million to build low-income housing in a dozen states. UnitedHealth’s big push into housing isn’t charity, although the investment also brings financial benefits (in the form of tax credits). National studies show that individuals without stable homes are sick more often, have more undiagnosed illnesses and are more likely to wind up seeking expensive care in emergency departments

A recent report by the Annie E. Casey Foundation focuses on racial disparities in indicators that determine a child’s chance for future success. The report creates a new Race for Results Index, which includes 12 measures that are most closely connected to the likelihood of a young person becoming middle class by middle age. These measures include:

Social impact bonds (also known as pay for success contracts) have attracted significant interest in the last few years and are being considered by policy makers in California, Connecticut, Massachusetts, New York, Ohio, and Utah, among others. These creative financing mechanisms were first popularized in the United Kingdom as part of the Conservative Party’s “Big Society” effort to use market discipline to improve public services.

The Guinn Center is committed to facilitating and encouraging public engagement. While we recognize the importance of producing and disseminating solid, timely, and relevant research to inform policy stakeholders, our impact will be measured, in large part, by our ability to engage the broader community. Our goal is to encourage the broader public to engage in sustained conversation in order to develop a narrative and vision for the common good that benefits all Nevadans.