The Tax Foundation finds that Nevada now ranks 25th in state and local government spending per person. Fully half the states accomplish their goals of state and local government with less money per person.

This website was created to help Nevadans learn how government is spending all of this money. Browse by topic (above and right) or chronologically (below).

SAGE Commission: Employee Costs Exorbitant

Posted by Webmaster on December 31, 2008 under Retirement

Nevada Taxpayers could save more than a half-billion over the next five years by adjusting retirement and benefit costs closer to those of the private sector, according to a bi-partisan efficiency panel appointed by Governor Jim Gibbons..

The Nevada Spending and Government Efficiency Commission said in a new report that the salaries paid to state workers are similar to equivalent positions in the private sector. Commission Chairman Bruce James said, however, that the insurance and retirement benefits offered to state employees “exceeded the Nevada private sector and most other states by a wide margin.”

Notes From The Ropes

Posted by Webmaster on December 30, 2008 under News

Just over a week ago, I posted an entry on NevadaTaxpayer.com pointing out the deceptions penned by a professor of Higher Taxation up in Reno and published in the Las Vegas Sun. I rewrote the gist of my web post for a newspaper format and submitted it to the Las Vegas Review Journal about the middle of last week, and was pleasantly surprised to find it in the Sunday Opinion section. The reaction has been quite fascinating.

It’s not just the reaction in the comments appended to the RJ article, where government union folk explain that they’ve had to get smaller raises in order to fund expansions of the defined benefit plan (ah, smaller raises that have resulted in one of the highest government paychecks in America, don’t ya know!)  or the university professor who notes that the 10% of his paycheck (matched by 10% more from taxpayers) goes into a defined contribution plan instead of a defined benefit plan, therefore not all government employees are in a defined benefit plan (university professors are the acknowledged exception to the rule, and the only group most of whom gets a double COLA for more than the past ten years).

Casey Gillham, who graduated from UNR in 2004 or so, worked through a brief succession of three government jobs in Northern Nevada before enrolling at Oregon’s taxpayer-funded law school, emailed me that “Your defeat was a glorious day for the citizens of Nevada.  You are a case study on why being an asshole never pays!”

I’d like to see the syllabus for his school’s class on Logical Argument. Of course, it’s pretty tough to logically argue that Nevada’s government employee structure (very low number of them per thousand citizens, along with very high average pay, along with their constant refrain that they need more co-workers) is logical. Or that taxpayers are actually saving money by incurring triple the retirement costs that most private employers invest.

But that’s just exactly what Review Journal correspondent Irwin Kaufman did in his letter to the editor, published today.

LETTERS: Beers’ arguments still watered down

To the editor:

It’s obvious that former state Sen. Bob Beers has a lot of time on his hands. What else could account for his rambling Sunday commentary attacking the well-reasoned post of University of Nevada, Reno professor Elliot Parker? [A]

Mr. Beers, a Republican who lost his re-election bid last month, grudgingly admits Mr. Parker is correct when he states that “only 5.5 percent of Nevadans work for the state or local or governments, the lowest share in the 50 states by far.” This fact was the major premise of the professor’s argument that we need more government employees. [B]

Mr. Beers, however, has another agenda. The professor’s position gave him another opportunity to repeat attacks on the benefits of Nevada’s government employees.

For example, Mr. Beers mentions that Social Security taxes are paid by non-government workers but not by government and school employees. He omits the obvious reason for this disparity: Nevada governments opted out of Social Security, thus saving the state millions of dollars in matching contributions. [C]

Mr. Beers continues with his familiar argument that government employee unions have too much power, without any elucidation. [D]

Finally, he uses the per-pupil costs of Faith Lutheran Jr./Sr. High School to illustrate that education can be provided privately at competitive costs. Because Faith Lutheran is a religious school with a selective admissions policy, this comparison is meaningless. [E}

Mr. Beers could spend his sabbatical auditing classes in economics and education so he can better understand the topics he opines upon.

Irwin Kaufman
LAS VEGAS

Googling Mr. Kaufman reveals an interesting portrait - a profile on Linkedin.com soliciting government contracts (education management) but sadly not having a single reciprocal contact. Here are a few thoughts on Mr. Kaufman's points...

[A] One wonders if Mr. Kaufman actually ready Professor Parker’s article?

[B] One wonders if Mr. Kaufman actually read my article as well. Professor Parker’s argument seems to be that we have a low number of government employees per thousand citizens, therefore we Nevadans are chintzy in funding government, therefore we need more government funding. I pointed out that the Professor is being deceptive by only including his source’s statistic of a low number of employees per thousand citizens, and not telling readers that his source also says Nevada pays near the top of the scale for government workers. My implication is that if we paid government wages closer to national averages, we would have funding available to hire more public servants.

[C] Mr. Kaufman is embarrassingly mistaken. Yes, Nevada taxpayers, in opting out of social security, avoid a social security contribution of 6.2% of wages. In doing so, taxpayers incur a PERS contribution cost of 10% of wages (for state, university, and rural county local government employees) or 20% of wages (for most other government employees) or 30% of wages (for Clark and Washoe County police and fire employees). Mr. Kaufman states that this practice results in taxpayers paying less money to fund benefits. Let’s see… 6% is larger than 10%, 20% and 30%… Mr. Kaufman isn’t making sense.

[D] More proof that Mr. Kaufman has not actually read my article. The entire thing lays the case out pretty clearly.

[E] Huh? Mr. Kaufman appears to be stating that because the private schools do not have to admit disruptive students, you can’t compare per-pupil funding between any private and public school – yet that’s exactly what Professor Parker does in his essay. Mr. Kaufman’s objection would seem to render Professor Parker’s comparison invalid on its face, where I merely showed that his comparison is factually wrong.

A simple equalization measure would be to axe the mandate that government schools force young adults who insist on not learning (and disrupting others) to disrupt the learning of those who are interested.

State Archivist Departs Urging Tax Shift From Tourists To Residents

Posted by Webmaster on December 29, 2008 under Economy, State Government

Nevada’s State Archivist Guy Rocha made the front page of the newspaper with news of his retirement. He offered, in addition to his usual ability to fascinate with his command of Nevada history, some political views. For example:

“I find it disturbing this state that has essentially been my life is, in my opinion, on the brink of disaster. You can’t cut 34 percent or more without devastating state government”… Rocha fears legislators in the coming session will cut state spending so severely that it might take decades for his and other agencies to recover.

This is a little melodramatic. The latest estimates of Nevada’s tax revenue for the next two years is that state tax revenues will be about this same for the two years starting July 1, 2007 as it was for the two years starting July 1, 2005, and that it will be about the same for the two years starting July 1, 2009. Our flat revenue is much higher than revenue was for the two years starting July 1, 2003, and that number was swollen with the largest tax hikes in many decades passed by the 2003 Legislature. Later, Rocha notes he was a history major.

Rocha parts with this:

Rocha also criticized the state’s tax structure, saying it relies too much on tourist-generated revenues and leads to wild swings in the state’s financial health.

“We need a 21st-century Nevada, and it can’t rely on tourism to keep driving the engine,” Rocha said. “Tourism will no longer be able to sustain state government unless people are satisfied with a government so small it can’t do very much at all.”

All the available evidence indicates that our ability to export taxes to visitors has led to greater tax structure stability for Nevada, rather than wild swings. The current economic downturn (the private sector is down and losing jobs while the public sector is flat and not losing jobs) started with the “locals” economy of residential construction, and for many months tourism continued to do well, and the 2001 downturn was much less severe in Nevada than most states due to how quickly tourism rebounded.

Judge Pay Raises Lift Them Into Top-10 Salary States

Posted by Webmaster on December 26, 2008 under Salaries

Although the Nevada Legislature has met in special session to trim the budget twice so far this year, Nevada’s judges are still going to get a whopper of a raise next week.

That’s Incredible!

Posted by Webmaster on December 26, 2008 under Administration

Here’s the tale of how Clark County School District bureaucrats managed to blow a charitable contribution in seven figures. The money has since been donated the UNLV (one million) and Temple Beth Sholom (another million).

Fortunately, no school district bureaucrats lost their jobs over the fiasco.

Nevada Population Growth Slows

Posted by Webmaster on December 23, 2008 under Population

Although you’ll still hear about how our top-ranked population growth requires more and more government, Nevada’s growth has slowed.

New Census Bureau estimates say seven states have growth rates faster than Nevada’s.