Sandoval’s predecessors share thoughts on running state

After then-Gov. Bob Miller proposed raising mining taxes during a recession two decades ago, a protester launched a brick at the dining room window of the Governor's Mansion.

Welcome to life in the fishbowl, where the glass is breakable and the man inside is dealing with what former Gov. Paul Laxalt calls "the most difficult, demanding -- and rewarding" job he ever had, steering the ship of state through economic hazards, these days of Titanic-sinking size.

The Las Vegas Review-Journal asked all of the state's former governors to offer Brian Sandoval advice as the Republican prepares to take office in January. From the professional to the personal, it ranged from recommendations to quickly surround himself with dedicated and competent staff to suggestions that he remember to carve out time for himself and for his family.

"If you don't, the demands of the office will just tear you to pieces," said former Gov. Robert List.

Former Gov. Richard Bryan agreed, saying, "Everybody wants the governor's time."

Defeated one-term Gov. Jim Gibbons, a Republican working behind the scenes with Sandoval on the hand-over, didn't respond to a request to his spokesman to outline his advice to Nevada's first Hispanic governor, the 29th man to hold the office since the state's birth in 1864.

The remaining four living state leaders, two Democrats and two Republicans, each praised Sandoval for swiftly making key appointments, from retaining Budget Director Andrew Clinger to naming as his chief of staff Heidi Gansert, a former minority Assembly leader who knows the legislative process.

And they each said expectations are high as Sandoval attempts to pull off an economic hat trick to balance the under­funded budget and revive Nevada's economy during the worst recession since the Great Depression, all while trying to keep his campaign promise not to raise taxes.

In reverse order of service, here is some of their advice:

BOB MILLER, 65

From Day 1, make sure you know who is in charge of emergency services "and make sure it works," said Miller, who recalled one year started for him with a massive New Year's Day flood in Reno.

He also recommended that Sandoval attend the annual National Governors Association conventions, which include forums that are the equivalent of "How to Be a Governor, 101" classes.

Beyond the basics, Miller said Sandoval's biggest challenge will be to fill an expected revenue shortfall of at least $1 billion for the next two-year state government budget, now $6.4 billion.

Sandoval said again last week that he won't raise taxes, but he might try to grab funds from schools and local governments and secure money by selling state buildings and then leasing them back.

Miller, who had to raise several taxes during recessionary times, said he thinks Sandoval might need to do that as well. Deeper budget cuts might not do the trick, Miller said, and people's needs might be too great, especially if the jobless, the poor and schools require more government support and services.

"You have to look at your priorities and your necessities and go from there," said Miller, who called budget-cutting painful. "He's coming in with an incredibly large shortfall that he's going to have to deal with. My personal opinion is, they're going to have to look at some sort of new revenue stream."

Miller said he was warned that he would not be re-elected if he raised taxes, but survived doing so because "we justified it." But, unlike Sandoval, he hadn't made a "no new taxes" pledge.

"I think it's advisable in a general sense to be as open to things as you can," Miller said. "You have to maintain some level of flexibility because compromise is what ultimately happens."

Miller said Sandoval will have a veto he can use if he doesn't agree with budget proposals and other legislation coming out of the Democrat-led state Senate and Assembly, but he recommended that the new governor avoid legislative battles and seek bipartisan deals instead.

Still, Miller was known for, at times, pushing hard to get what he wanted for Nevadans.

In his 1989 State of the State speech, he announced his bid to raise taxes on the mining industry by using its slogan, saying, "Mining, it works for Nevada. It is not working hard enough." The net gross receipts tax went up to 5 percent, but the powerful industry has been protected ever since.

"The mining tax was a controversial issue, and one evening Sandy Miller was reminded just how contentious it had become when a brick came flying through the dining room window," according to the book, "100 Years in the Nevada Governor's Mansion," published in 2009.

Miller and his wife, Sandy, raised three children in the Carson City mansion, including a new baby, a daughter and a son, Ross Miller, now secretary of state and a potential future governor. As a family, the Millers had to make many changes with the move north from Las Vegas.

"It's natural for any kid to be shell-shocked," Bob Miller said, adding that his family had more time to adjust since he was lieutenant governor first. "You have to understand that you've moving your whole family, and they have to make new friends and figure out how they fit into Carson City life."

On another personal note, Miller said he also made sure to play basketball two or three times a week at midday for his health, both physical and mental, no matter his busy schedule.

"You've got to have a life," he said, suggesting Sandoval schedule time for his personal life, whether it's for sports, church or family meals. "You're constantly under pressure."

RICHARD BRYAN, 73

When Bryan took office, he didn't know if the state would have enough money to make payroll his first month in charge as Nevada and the nation suffered one of its worst recessions.

In an early move to ensure a steadier cash flow, he got the Legislature to change tax collection on the gaming industry from quarterly to monthly. Then he set his sights on diversifying Nevada's economy beyond gaming and tourism, an effort that continues today.

"The most important thing for him to do is for him to get his arms around the budget," Bryan said of Sandoval. "He is not a budget person by experience or background, and so I think one of his key decisions is to select his budget director. And the second thing is to reach out to legislative leaders. You have to start a dialogue with them. And I think right now that's probably what he's doing."

Sandoval is also deciding whether to keep or replace the 20-plus political appointees who head the state's major agencies, from the Department of Human Resources to Veterans Services, which the new governor announced on Veterans Day will continue to be directed by Caleb Cage.

Bryan said many of the departments are led by a professional class who have worked for several administrations, Democratic and Republican. He said it's important that governors strike the right balance in bringing in their own fresh Cabinet while retaining the best of the rest.

"You don't have to replace everybody just because they were appointed by your predecessor," Bryan said. "It's helpful to have some continuity. And when you do replace people, in fairness you have to let them know in the right way. There's a certain grace in handling these decisions.

"Right now, there's got to be a lot of people who are on pins and needles in Carson City. In this economy, there are probably some people wondering, 'Do I have a job?' "

Bryan cautioned Sandoval not to make the mistake of appointing people just because he thinks he owes them a political favor, perhaps for helping him win election or because they are friends or allies.

"This was probably the most difficult thing for me," Bryan said, calling it a "personality flaw." "All these people who worked tirelessly for me, who gave hundreds of thousands of hours, all of a sudden you are saying 'no' to these people. That was very painful for me.

"But you've got to take those tough decisions," he added, saying as attorney general he kept too many people. "You cannot appoint some of these people because, to cut to the chase, your performance is going to be judged based on their performance. You can sow the seeds of your own destruction."

BOB LIST, 74

Bob List knows something about sowing the seeds of his own destruction. In 1981, the Legislature, on List's recommendation, shifted the state's main reliance from relatively stable property tax collections to less stable sales tax receipts.

Unfortunately, a deep recession soon took hold, sales tax collections dropped and List lost re-election, partly because of his decision to ease the tax burden on homeowners.

List's advice to Sandoval in the current recession is to keep his pledge not to raise taxes.

"Look around. Who pays taxes? That's all of us," List said, ticking off everyone from schoolteachers to business professionals to homemakers trying to keep food on the table.

"There's not a soul out there who isn't impacted in some fashion by this decline in our economy.

"It's impossible to raise taxes and look at yourself in the mirror, particularly when you promised you wouldn't," List added, saying President George H.W. Bush lost re-election because he raised taxes after campaigning on this famous pledge, "Read my lips: no new taxes."

List said he has been in close touch with Sandoval, offering advice on every­thing from people who might be good members of his Cabinet to ways to expand Nevada's narrow economy.

"You have to work your tail off to diversify the business base," List said. "You hit the road to start bringing new business in here. It's absolutely critical that you broaden this base. We're entirely too dependent on tourism, and we've seen the roller-coaster effects of this strategy."

At the same time, List said Sandoval needs to know how to say "no" to the endless line of people who ask the governor for meetings, usually "wanting something in return."

"To some extent, it goes against a politician's nature to say 'no,' " List said. "But you have to have principles and a foundation upon which to build and make all of your decisions. And you have to treat people equally, whether they're a total stranger or somebody who gave to your campaign."

Laughing, List shared the first piece of advice he got from Mike O'Callaghan, the popular two-term Democratic governor he succeeded. A gregarious man, O'Callaghan was a hard worker and a compelling storyteller in the best Irish tradition -- and he could spot a fake a mile away.

"He and I sat in his office, just the two of us together," List recalled. "And he reached into this drawer and pulled out a spray can. He said, 'You're gonna need this. Keep it handy.' "

The label on the aerosol can read "Bullshit Repellent."

"His advice was, the BS is the biggest challenge," List said. "You're going to have to put up with a lot of that."

Joking aside, List said he and past governors were fortunate to work in a more civil political system, in an era when Republicans and Democrats more frequently set aside partisanship to do what was best for Nevada, which is still a relatively small state with a population of about 2.6 million or so.

List recommended that Sandoval work openly with leaders of both parties in the Legislature.

"He should make certain that his staff and his Cabinet are transparent and completely objective in their dealings with the Legislature," List said. "Don't allow your people to ever go at it with hidden agendas. In the end, that will serve them well. The integrity of his administration depends not just on him, but on how his personal staff and his Cabinet conduct themselves.

"He'll be held accountable. The buck stops at his desk. He has to drive those values from the top to the bottom," List added, saying Sandoval is showing optimism despite tough times.

"People like his positive approach. Hopefully, it buys him good will during what will undoubtedly be some difficulties."

PAUL LAXALT, 88

The dean of GOP politics in Nevada, Laxalt agreed to provide some written advice for Sandoval, although with a humble caveat from his faraway perch in Washington, D.C.

"It might be a bit presumptuous to offer advice to Governor-elect Sandoval, but since I've known him for the better part of three decades, and I once had the honor of holding the office he is about to assume, I hope he will not resent my offering some thoughts on the subject," Laxalt wrote.

"Brian and I came to the position at about the same points in our lives: I was 44 and he is 47," Laxalt wrote of Sandoval, a former attorney general and federal judge. "We had both practiced law, previously held statewide office and entered the governorship at a time of economic hardship (although I would not dare compare the situation in 1967 to what Nevada is confronting today).

"After being elected, I placed a premium on finding the best and brightest staff available. Filling top administration positions with competent, experienced, loyal and hard-working individuals is an absolute must. Brian knows this and is already assembling a first-rate team.

"When I became governor, there were a myriad number of issues I wanted to address: budgetary matters, gaming reform, education reform, prison reform, protecting Lake Tahoe, etc. Fortunately, we were able to get our fiscal plan -- our top priority -- in place in relatively short order so that we could move on to other issues. Brian, on the other hand, is in­heriting an economic quagmire that should be his first, second and third priorities.

"Brian will be faced with a Democrat-controlled Legislature, so he will have to 'reach across the aisle' in order to achieve his goals. In my view, that will not be a problem. Like me, Brian subscribes to the philosophy that political differences should not translate into personal differences. He is a civil, decent and honorable individual (and tough as nails when needed), and those traits will serve him exceedingly well. He can stick steadfastly to his fiscally conservative policies but do so in a manner befitting the office he holds.

"I had the honor of being elected to various positions in Nevada, but serving as governor was the most difficult, demanding -- and rewarding. The beauty of the position is that executive power can be utilized effectively and quickly, which means that the governor has a great ability to help the people of his or her state. Yes, living in the governor's mansion can be like living in a fishbowl, but the rewards far outnumber the burdens.

"Shortly after Ronald Reagan and I were elected governors of our respective states in 1966, he sent me a plaque that included an inscription that all public servants would be wise to heed. It said: 'There is no limit to what a man can do or where he can go if he doesn't mind who gets the credit.' I know that Brian isn't interested in receiving credit; he's interested in getting the job done for Nevada.

"Fortunately, Brian is blessed with the personal and substantive skills -- and experience -- that will be required to meet the huge challenges he'll face as Nevada's next governor."

Laxalt, fiscally conservative, raised taxes, including gaming and sales taxes, to balance his first budget in the face of a "Vegas recession," according to his 2000 memoir, "Nevada's Paul Laxalt."

He did so after making as many budget cuts as he could and after consulting with the then-new California Gov. Reagan, who went on to win the presidency and remains a GOP icon.

Reagan told Laxalt, "I have the same problem, and I'm going to ask for a tax increase. It's the responsible thing to do," Laxalt recalled in his book.

Laxalt then went to every major casino owner to personally tell them of his plans before he went public with them.

"Guess what? We balanced the budget, and the economy survived nicely," Laxalt wrote. "In fact, the Las Vegas economy picked up spectacularly in 1967."

No economists are predicting a quick Las Vegas recovery today.

Contact Laura Myers at lmyers@reviewjournal.com or 702-387-2919.