Friday, October 25, 2013

A Tale of Two States, CA and NV: Part II

In September, Nevada Gov. Brian Sandoval delivered the Republican Party’s weekly address. In the video, which lasted less than six minutes, Sandoval blasted the Obama administration’s handling of the economic recovery and touted Nevada’s approach.
Sandoval, elaborating on how dire the economic situation in Nevada was when he took office in early 2011, said that “mere survival” was not good enough for his state. He said that he ordered all new regulations be frozen until they could be reviewed; cut spending by hundreds of millions of dollars; balanced Nevada’s budget; merged and eliminated state agencies; and extended tax exemptions for businesses. (Sandoval, working with a Democrat-controlled state legislature, later agreed to extend some taxes that had been set to expire.)
In the video, Sandoval pointed out that Nevada had experienced 31 months of economic growth and had the second strongest decline in unemployment in the nation. He also claimed that a wide array of businesses now had plans to move to Nevada.
“When it comes to growing jobs, it is my responsibility to leave no stone unturned when it comes to getting Nevada working again,” he added.
So what exactly are those plans?

Selling Nevada

Nevada’s pitch to firms interested in expanding or relocating to the state is simple. The state has some of the lowest taxes in America. California’s top income tax rate is 13.3 percent; Nevada has no state income tax.
Nevada’s regulations are limited. Given the state’s size, working with government is quick and easy (California businesses often complain about how long routine approvals take). Some firms — though certainly not all — are coaxed with even more tax incentives. And Las Vegas — known for its tourism, as well as the benefits that come with being a large metropolitan area — has always been a major selling point.
A patchwork assortment of agencies remains tasked with selling that message to firms that might want to expand or grow in Nevada.
At the top is the Governor’s Office of Economic Development. Historically, the lieutenant governor was tasked with running economic development in Nevada, but 2011 legislation centralized power in the governor’s office by creating the OED.
Sandoval has aggressively courted major companies since. In early 2012, he announced the state would attempt to create 50,000 jobs by 2014. Apple and Starbucks have both moved parts of their business to Nevada as a result of negotiations handled primarily through the OED. (Apple received a large tax break.)
In addition to attracting outside states, the OED focuses on attracting workers to some of Nevada’s core industries like gaming and tourism, as well as mining. The office is also pushing to expand the small tech industry in southern Nevada, along with logistics and transportation industries.

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