Coalition pushes for legislation that would create 100,000 jobs

CARSON CITY -- "We are here to work. We aren't looking for a handout. We want to get out there and work."

Unemployed construction worker Chris Streitler of Reno delivered those words to legislators Wednesday as more than 100 jobless people, most wearing blue jeans, pleaded for help in finding employment.

Some said they had been unemployed for three years, others for two. Several said they had temporarily moved to other states to find jobs because none were available in Nevada.

Still others said prolonged unemployment has damaged them psychologically and led to the destruction of their families.

"I can't say (enough) how hard it is on my family when I am not working," added Northern Nevada construction worker Jessica Cresthnaite as she held a young child who cried constantly. "I can't afford to give my children things I had."

All that members of the newly created Senate Select Committee on Economic Growth and Employment could do was listen as workers laid out what they see as a bleak future if the Legislature does not intercede.

A bill sought by the Buildings Jobs Coalition, a group of two dozen labor and management organizations, has not even been prepared.

The coalition wants the Legislature to pass the bill to create 100,000 jobs.

It would set up a $1 billion bond to construct public buildings and infrastructure by either imposing a 0.25 percentage point increase in the sales tax rate, or hiking property taxes by 10 cents per $100 of assessed value.

After the hearing, committee Chairman Ruben Kihuen, D-Las Vegas, would not say whether his committee will back tax increases to carry out the coalition's proposal.

"Today was just stating the problem. Right now we need to analyze the budget and see how much we need. I have reached out to Republicans. Everyone is here to solve the problem and not be part of the problem," Kihuen said.

But he declined to say whether any Republican has agreed to increase taxes to create jobs.

Tax increases are something that Gov. Brian Sandoval and virtually every Republican have pledged to oppose.

Sandoval picked up even more anti-tax support Wednesday when Sen. Dean Rhoads, R-Tuscarora, said he would support the governor's no-tax plan. Rhoads backed tax increases in 2003 and 2009.

Dale Erquiaga, senior adviser to Sandoval, said he listened to the unemployed people discuss their problems. While sympathetic, the Sandoval administration cannot support measures that increase taxes, he said.

"The governor's position on taxes is pretty clear," Erquiaga said. "We don't need to restate that. But this group has genuine concerns and we will work with them on other ideas for jobs."

Erquiaga noted the governor wants to spend $10 million on the Silver State worker program through the Department of Employment, Training and Rehabilitation that could create 10,000 jobs. He also is amiable to proposals expected from legislative leaders to create jobs without tax increases.

But the Sandoval adviser took exception to testimony by Steve Holloway, executive vice president of Associated General Contractors in Las Vegas.

Holloway contended Sandoval is costing the state 5,500 construction jobs by his plan to take $425 million in capital improvement funds from the Clark County School District.

Erquiaga, however, said Sandoval wants Clark County and other school districts to use excess bond reserves to pay their operating costs.

He does not want to take construction or capital improvement funds, according to Erquiaga.

But the gist of Holloway's argument was that there are nearly 200,000 unemployed people in Nevada and that the construction industry, which has nearly 80,000 jobless workers, needs state help immediately.

"We believe unless the economy stabilizes we will be faced with one fiscal crisis after another," he said.

State economist Bill Anderson began the meeting by noting Nevada's 14.5 percent unemployment rate is the highest in the country. He believes unemployment has peaked, but the rate still will remain in the high 13 percent range at the end of the year.

Anderson also said true unemployment, counting people who have stopped looking for jobs and those who cannot work full time, is about 24 percent in Nevada.

"We don't see anything out there that is going to move us on the rapid growth trajectory," Anderson said. "Nevada will recover, no doubt about that. But Nevada will lag the national economy in terms of recovery."

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.