Status quo speech signals fights ahead

Gov. Brian Sandoval did a workmanlike job of delivering a straightforward, unadorned State of the State speech in Carson City Wednesday, setting out a budget and agenda for the Legislature that will mostly preserve the status quo.

There were no surprises, the governor having already trumpeted his restructuring of the state's economic development efforts and his decision to expand Medicaid. (The governor took pains to make it clear the state could opt out of the expanded Medicaid in the future, although the chances of that happening are roughly the same as a major corporation considering relocation to Nevada being turned down for generous tax breaks.)

But a few issues that could turn into full-fledged policy fights were buried in the text, and a few more could be found in Senate Majority Leader Mo Denis' Democratic response.

Sandoval wants full-day kindergarten for "the state's most at-risk schools," with the goal of providing the service in almost half of all elementary schools by 2015. Denis said the state should implement free full-day kindergarten in all schools, right away.

Sandoval said he put $14 million toward English Language Learner instruction. Senate Minority Leader Michael Roberson, R-Las Vegas, has said he favors $20 million for that purpose.

Sandoval says "I will continue to fight for school choice," which is to say, school vouchers, something the governor failed to get in the 2011 session. Democrats are opposed. "Our schools need to be fully funded before we start subsidizing private schools," Denis declared in his speech.

Sandoval wants to link student performance to teacher evaluations; Democrats typically oppose that kind of linkage, complaining such a system is inherently unfair because of widely varying conditions in crowded classrooms.

The governor gave the Democrats their best opening of the night when he repeated his plans to increase the exemption to the state's payroll tax, excusing 2,700 more Nevada businesses from paying it. Said Denis: "Let me be clear, the governor is proposing to cut taxes on 2,700 businesses in the state while raising the sales tax on middle class families." (By "raising," Denis really means "extending" - Sandoval has called for extending a package of taxes, including sales taxes, that were supposed to expire, but nobody will pay a higher rate.)

Other than that, the Sandoval of No New Taxes 2010 made a return: "Let me be clear: Nevada's employers cannot afford higher taxes, and I will not support them." (We should assume Sandoval meant he will not support higher taxes, not that he will not support Nevada employers.)

But lest you think Democrats left with the high ground, don't. After spending tens of millions on Page 3 of his speech (on full-day kindergarten and class-size reduction), Denis on Page 5 fails to tell us how he'd pay for it.

"But we cannot implement these plans on the backs of the middle class," Denis said. "Nor can we ask tourists and our resort industry to pay more for these investments. We cannot ask our small businesses to stretch resources any further."

Perhaps Denis inadvertently deleted the next line, because he failed to tell us precisely who would pay for "these investments." Hmmm, who's left?

It looks like mining companies and big corporations!

Instead, Denis plunged ahead to say, "Tough choices will have to be made over the next several months and we hope our colleagues will forgo political rhetoric and support policies that move Nevada forward."

Not on the immediate list of tough choices, unfortunately, was identifying those who ought to pay more to move Nevada forward.

If it seems to you today that nothing has changed from Tuesday, it's because nothing has.

Steve Sebelius is a Review-Journal political columnist and author of the blog SlashPolitics.com. Follow him on Twitter (@SteveSebelius) or reach him at (702) 387-5276 or ssebelius@reviewjournal.com.