Democrats offer plans to spur state’s economy
February 11, 2011 - 2:06 am
CARSON CITY -- Companies that bid on public works projects in Nevada would get a leg up on competing firms under a legislative plan announced Thursday.
The companies would have to promise to hire state residents for
50 percent or more of the jobs.
The Nevada Jobs First announcement was billed as an "extraordinary display of bipartisanship" on job creation, but Republican legislators weren't invited to the event, and economists in Northern and Southern Nevada were unaware of evidence showing that such contracting preferences would increase employment for Nevadans.
Democrats from the Senate and Assembly gathered reporters to unfurl the preference bill and an idea for a Nevada Jobs Fund, which they said were first in what will be a series of economic development proposals.
Heidi Gansert, chief of staff to Republican Gov. Brian Sandoval, joined the legislators and spoke briefly about Silver State Works, a program the governor proposed to update and broaden job training services for unemployed Nevadans. Gansert said Sandoval would need to evaluate the Democratic proposals before passing judgment.
The Nevada Jobs First bill will be sponsored by Assembly Speaker John Oceguera, D-Las Vegas, Assemblywoman Marilyn Kirkpatrick, D-North Las Vegas, and Assemblywoman Debbie Smith, D-Sparks.
The bill would expand existing eligibility requirements for preferences for Nevada contractors on public works bids on state and local projects.
If enacted, it would give a 5 percent preference to Nevada companies that plan to use state residents for 50 percent or more of the work, buy 25 percent or more of materials in-state and register vehicles used on the job in Nevada. If a Nevada company's bid were less than
5 percent higher than a competing bid from an out-of-state firm, the Nevada company could still get the job.
"It is something we can do right away" to improve employment prospects in Nevada, which has the nation's highest unemployment rate at 14.6 percent, Oceguera said.
None of the legislators could quantify how many public works projects are under way in the state nor could they say what percentage of workers on the projects are from outside Nevada .
"To my knowledge, there is no way to obtain this information," said Jeremy Aguero, principal at the Las Vegas economics research firm Applied Analysis.
Elliott Parker, an economics professor at University of Nevada, Reno, said it is possible stronger Nevada hiring requirements could improve the economy by increasing spending, but the more important factor in increasing economic activity in the state is where workers spend money.
A Nevada preference favoring a resident over a visiting California worker who rents lodging, eats and spends in Nevada "would have no effect" on improving the economy, Parker said.
The Nevada Jobs Fund bill will be introduced through the Select Committee on Economic Growth and Employment led by Sen. Ruben Kihuen, D-Las Vegas.
It would establish a fund to support building public works. No source of money was identified.
"Both Democrats and Republicans are committed to putting unemployed Nevadans back to work," Kihuen said.
After Thursday's announcement, Senate Minority Leader Mike McGinness, who didn't attend the news conference, was asked whether he considered the event bipartisan.
"Probably not," the Fallon Republican said. "I'll have to look it up; it doesn't meet the definition."
He said Senate Republicans probably could support the Nevada preference but was skeptical of the jobs fund.
Assembly Minority Whip Mark Sherwood, R-Henderson, said the contracting preference bill was dubious.
"They say, 'Jobs, jobs, jobs,' but they don't know what it means," he said. "Job creation is not bidder preference."