Gov. Sandoval: Nevada needs to be more competitive to attract more jobs

Gov. Brian Sandoval told a conservative business group Wednesday that Nevada needs to be far more competitive than other states to attract new businesses and jobs.

But Sandoval also said he's encouraged the state is now on the right path toward economic recovery, having created 10,000 new jobs since he became governor in January 2011.

He told the Keystone Corporation's annual lunch that the state's finances are in the best shape they've been in since 2007, when Nevada first began to feel the effects of the coming recession that cost 170,000 jobs. Sales tax collections have risen for the past 19 months in a row, for example, and monthly gaming revenues recently surpassed $1 billion for the first time in three years, he said.

Still, Sandoval said the state faces persistent funding challenges, which is why he proposed extending $620 million in taxes for another two years.

New Medicaid cases alone will cost Nevada more than $500 million if President Barack Obama's health care law survives a U.S. Supreme Court challenge, he told the group.

"Nevada is finally on the move and we cannot jeopardize that momentum," Sandoval said in a 30-minute address at the Silverton. "Together we will get Nevada working again."

A year ago when Sandoval spoke to the Keystone meeting, the Republican was in the middle of a budget fight with the Democratic-led Legislature. He was resisting a move to extend the $620 million tax package, saying he would not "trade taxes for anything." He ended up agreeing to the tax extensions after the Nevada Supreme Court questioned other sources of funding in his budget.

Sandoval argued Wednesday that another two-year extension won't raise anyone's taxes and will help him block any effort by Democratic lawmakers to impose a new tax on businesses.

"By taking this step there will be no need for new taxes," he said, earning applause.

Sandoval told the meeting of 150 business and political leaders that Nevada still has the friendliest low-tax, limited regulation business climate in the nation. He said it remains one of the main selling points to draw new companies to re­locate, expand and bring more jobs here.

Sandoval has set a goal of creating 50,000 new jobs in Nevada by the end of 2014 under a revamped economic development plan that focuses on seven sectors, from aerospace to mining.

He said the competition is tough because conservative GOP governors from other states are using offers of free land and millions of dollars in tax breaks and grants. He cited Indiana, New Jersey, Utah and Texas, which is racing Nevada to lure companies to leave California.

Sandoval said Texas Gov. Rick Perry told him he wouldn't give way to Nevada.

"He would like nothing better (than) for those California firms to leap over Nevada and come to Texas," Sandoval said. "He said if Nevada does nothing, Texas is going to kick your butt."

The Nevada Policy Research Institute, a conservative think tank, criticized Sandoval's economic development because he wants to use some public funds and a $15 million catalyst fund to lure businesses to the state, essentially picking "winners and losers" by redistributing tax dollars.

"The best way to grow the economy is to get government out of the way of entrepreneurs, not give handouts to a favored few," said Victor Joecks, communications director of the think tank.

Contact reporter Laura Myers at lmyers@reviewjournal
.com or 702-387-2919. Follow her on Twitter @lmyerslvrj.