We now know the pecking order in Nevada.
In his State of the State speech this past week Gov. Brian Sandoval boasted that the Tesla gigafactory near Sparks, in addition to making batteries for electric cars, would also be making electric motors and gearboxes, adding 550 workers.
Left unsaid was who would pay for the police and fire, schools and other government services those workers would need, since Tesla was given $1.3 billion in tax breaks and credits, as well as promises of millions more to improve roads, by lawmakers in a special session in 2014.
Tesla is owned by billionaire Elon Musk.
Nevada takes care of billionaires.
Nevada lawmakers in a special session in 2015 agreed to dole out $215 million in tax abatements and credits plus millions in road improvements to entice Faraday Future to build an electric car factory at Apex in North Las Vegas. The company is owned by a Chinese billionaire.
As if on schedule, legislators in 2016 agreed to pony up $750 million in tax money to help build a domed football stadium for the billionaire owner of the Oakland Raiders, Mark Davis, and Sheldon Adelson, billionaire owner of the Sands casino corporation and the Las Vegas daily newspaper. The stadium would also require the state to spend $900 million for road improvements.
Almost as an afterthought, Sandoval tossed out a $60 million sop to the parents who have applied for education savings accounts (ESAs) approved in 2015 by lawmakers. The ESAs were blocked when the state Supreme Court said ESAs are constitutional but the funding mechanism devised by the lawmakers was not.
Under the law, parents who opt out of sending their children to public schools would be given an education savings account that would equal a portion of the statewide average the state spends per public school pupil, currently that is about $5,700. Low-income parents and parents with special needs children would get 100 percent of that amount, while all others would get 90 percent, or about $5,100 currently.
That money could be spent on private schooling, tutoring, transportation, distance education and/or homeschooling.
“We’ve heard from the thousands of Nevada families about how crucial it is that we give them freedom of choice in the education of their children,” Sandoval said in his speech. “I look forward to building a bi-partisan solution to get this done. It is time to give Nevada families more choice.”
Well, a few Nevada families perhaps.
It turns out the $60 million — $25 million in the first fiscal year and $35 million in the second — would fund about half the 8,000 to 9,000 ESAs already applied for so far in the first year and about two-thirds of them in the second year.
To add insult to injury, a spokesman for the governor said Sandoval is open to limiting who is eligible for ESAs by imposing means testing — the more a family earns, the less the family could get back from its own taxes.
When Sandoval announced his funding proposal for ESAs, Republicans applauded and Democrats sat on their hands, prompting the governor to quip with a chuckle, “I knew it would be a split house on that one.”
In 2015 not a single Democrat voted in favor of authorizing ESAs. Now the Democrats have majorities in both chambers of the Legislature, making that bi-partisan solution look like a pipe dream.
The governor had his chance to fund ESAs in that special session, while Republicans still held majorities in both chambers, in which lawmakers approved $750 million for that football stadium in Las Vegas, but he failed to put that on the agenda. Just not as important as the billionaires.
Nevada doles out billions for billionaires, but pittance for parents. — TM