Kids and Cattle: Washoe County School Bond Issue

cattle grazing The concept of an AUM is well understood in northern Nevada, that’s the Animal Unit Month, or the amount of forage needed for one cow and calf, one horse, or five sheep or goats for one month. The current grazing fee for 2016 is $2.11 per AUM.  Further, not all grazing land is created equal. First class produces enough feed on 4 acres or less for one grown cow. Second class during an average year produces enough feed on 4 to 6 acres for a grown cow. Third class during an average year will sustain a grown cow on 6 to 12 acres, and fourth class during an average  year produces enough feed on 12 acres or more for one grown cow (1/12 or less animal units per month.) [AgBulletin pdf]  The point here is that good grazing land sustains one animal/month on four acres.  Would that we were this concerned about our children.

School crowding The Washoe County School District announced that there are several schools in the Reno/Sparks area which are on pace to require double sessions and year round scheduling to meet their demands.  There are eight schools hovering near the “trigger.”

“Tuesday’s trigger, detailed in Regulation 6111, puts middle and high schools on double sessions once they exceed campus capacity by 20 percent. Portable classrooms are not counted in these campus capacities.

No schools meet the trigger, yet. But four middle schools and four high schools are projected to get there over the next five years. All these schools are already over capacity or near it.”  [RGJ]

squeeze chute Not that children and cattle are analogous, but we do recognize that cattle need at least a minimum amount of space for grazing while the file photo shot from the Reno Gazette Journal above seems to indicate that a few squeeze chutes might be handy for funneling the little calves into their classrooms.  Might be handy? We could vaccinate them while they’re in the chutes? Check their vital signs? Wash and brush them if necessary? Check for medical and dental problems?

Back to the serious side for the moment – The Washoe County School District is asking voters to support a bond issue in the next election for capital improvements and renovations.  

“The committee based its requested increase on tax revenue projections, which would allow the district to issue $781 million in bonds over the next decade for school renovations and new campuses. District officials have said $781 million is what they need to meet demands of student enrollment forecasts. The district would pay off the bonds over 20 years using proceeds of the sales tax increase.” [RGJ]

There are always excuses for a “no vote.”  Some people would vote “no” on any proposal if it requires a penny more in sales or property taxes.   This, in spite of the fact that northern Nevada has one of the lowest tax burdens in the entire country:

“As compared to other major cities around the country, Reno property tax rates are some of the lowest in the United States at an effective rate of about a dollar per $100 of assessed value. While supporting an especially high sales tax rate of 7.75%, much of that bite is ameliorated by the fact that Nevada only taxes 37.4% of its goods at sale. Further savings are found in a state tax code that allows for the deductions of state and local sales tax payments.” [movoto]

Those facts won’t prevent some people from loudly complaining, “They’re Taxed Enough Already.”  Then, there’s the always provocative and ever annoying, “Why should I pay for someone else’s kids?”   Gee, I don’t know, perhaps it’s because we don’t want to be known as the Land That Education Forgot, populated with the ignorant and ill-educated.  Or, the antagonizing, “The Schools waste money on _____________.” Fill in that blank with, say, “administration,” or “football fields,” or any other convenient complaint.

Another obstacle is the “alternative” suggestions popping up before election day.  “Why don’t we have year round schools?” Or, “Why don’t we do double sessions and year round schedules?”  The only one I haven’t heard yet is for about $1700 a school could install a squeeze chute to handle the crowding in the hallways —

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Filed under education, nevada education

Wall Street May Not Be The Enemy: It’s the friends we need to watch

“Wall Street” is an extremely elastic catch phrase, useful for politicians of all stripes.  For example, we have Senator Dean Heller (R-NV) reminding us at every possible moment that he “voted against the bail out.” And, we have politicians from the other side of the aisle excoriating the traders for all the ills of modern America.  Both are off the mark.

Wall Street sign

First, beware the thinly veneered populism of Senator Heller.  Yes, he did vote against the bailout – an extremely safe vote at the time – but, NO he hasn’t stopped being the Bankers’ Boy he’s always been.  Let’s remember that while he was offering himself as the Little Guy’s Candidate he was voting on June 30, 2010 to recommit the Dodd-Frank Act to instruct conferees to expand the exemption for commercial businesses using financial derivatives to hedge their risks from the margin requirements in the bill.  Then, on June 30, 2010, he voted against the conference report of the Dodd-Frank Act.  Heller wasn’t finished.

In 2011 he and then Senator Jim DeMint (R-SC) introduced S. 712 – a bill to repeal the Dodd-Frank Act.

“What S. 712 does is to (1) repeal measures which require banks to have a plan for orderly liquidation (another word for bankruptcy), (2) repeal requirements that banks keep records of transactions which would need to be transparent in case an “orderly liquidation” is in order, (3) repeal the establishment of an oversight committee to determine when a bank is becoming “too big to fail,” and is endangering the financial system — an early warning system if you will.  The new requirements governing (4) Swaps would also be repealed, along with the (5) Consumer Protection bureau.” [DB 2011]

Few could have been more obviously promoting the interests of Wall Street traders than Heller and DeMint. [DB 2012]  Few could have been more readily apparent in their enthusiasm to protect the financialists from the provisions of the Dodd-Frank Act including the Volcker Rule.

Volcker Rule

A word about the Volcker Rule:

“The Volcker Rule included in the Dodd-Frank Act prohibits banks from proprietary trading and restricts investment in hedge funds and private equity by commercial banks and their affiliates. Further, the Act directed the Federal Reserve to impose enhanced prudential requirements on systemically identified non-bank institutions engaged in such activities. Congress did exempt certain permitted activities of banks, their affiliates, and non-bank institutions identified as systemically important, such as market making, hedging, securitization, and underwriting. The Rule also capped bank ownership in hedge funds and private equity funds at three percent. Institutions were given a seven year timeframe to become compliant with the final regulations.” [SIFMA]

Yes, Senator Heller et. al., if the Dodd-Frank Act is repealed then the financialists on Wall Street may go back to gleefully trading all manner of junk in all kinds of packaging with no limits on bank ownership of hedge and private equity funds.  Let’s remind ourselves at this point that capitalism works.  It’s financialism that’s the problem.  Under a capitalist form of finance resources (investments) are moved from areas (funds) with a surplus to areas (businesses) with a scarcity of funds.  Under a financialist system capital (money) is traded for complex financial instruments (paper contracts) the value of which is open to question.  Not to put too fine a point to it, but the “instruments” seems to have whatever value the buyer and seller agree to whether the deal makes any sense or not.  The Dodd-Frank Act doesn’t forbid “financialism” but it does put the brakes on.

Notice, it puts the brakes on, but doesn’t eliminate the old CDOs.  Nor does it prevent the CDO with a new name: The Bespoke Tranche Opportunity.  It works like this:

“The new “bespoke” version of the idea flips that business dynamic around. An investor tells a bank what specific mixture of derivatives bets it wants to make, and the bank builds a customized product with just one tranche that meets the investor’s needs. Like a bespoke suit, the products are tailored to fit precisely, and only one copy is ever produced. The new products are a symptom of the larger phenomenon of banks taking complex risks in pursuit of higher investment returns, Americans for Financial Reform’s Marcus Stanley said in an email, and BTOs “could be automatically exempt” from some Dodd-Frank rules.” [TP]

Zero Hedge summed this up: “This is the synthetic CDO equivalent of a Build-A-Bear Workshop.” We’re told not to worry our pretty little heads about this because, gee whiz, CDOs got a bad reputation during the Big Recession of 2007-2008, when they were just “hedging credit exposure.”  Yes, and ARMs got a bad reputation when they were just putting people in houses… Spare me.

And, we’d think that after the CDO debacle of 2007-2008, some one might have learned something somehow, but instead we get the Bespoke Tranche Opportunity and a big bubble in really really junky bonds.   That would be really really really junky bonds:

“Junk bonds are living up to their name right now. As we have noted in the past, the lowest-rated junk bonds may have inflated a $1 trillion bubble at the bottom of the debt market. The thing is, it never should have gotten that way.” [BusInsider]

Indeed, back in the bad old days no one could issue CCC bonds.  Now, we have Central Banks supporting Zombie Companies, low yield Treasuries making investors look to more “speculative” debt, and more demand for high yields meant that purveyors of Junk found a market for their garbage. [BusInsider] And, of course, someone out there is hedging all this mess.

Lemmings Here we meet the second problem with financial regulation in this great country.  Not only would the Bankers’ Boys like Senator Heller like to go back to the days of Deregulation, but the Financialists are hell bent on Yield! High Yield!  Even if this means supporting Zombie Companies which should probably just die already; even if this means allowing the sale of Bespoke Tranche Opportunities; and, even if this means selling bonds no one would touch only a few years ago.  The quarterly earnings report demands higher yields (As in: What Have You Done For Me In 90 Days Or Less) and investors jump like lemmings off the cliff.

We’ll probably keep doing this until someone figures out that in these schemes the chances are pretty good that “getting rich fast” more often means going broke even faster.  Thus the financialists package Bespoke Opportunities and C (for Crappy) Bonds.

Said it before, and will say it again:’  What needs to be done is —

  • Continuing to restrict the activity of bankers who want to securitize mortgages, under the terms of existing banking laws and regulations.
  • Continued implementation of the Dodd-Frank Act.

To which we should add, “restrict the creation and sale of artificial “investment” paper products which add nothing to the real economy of this country, and instead soaks up investment funds, and creates Bubbles rather than growth.

 

Read more atSIFMA, “Volcker Rule Resource Center, Overview.” Desert Beacon, “Deregulation Debacle,” 2012.  Desert Beacon, “Full Tilt Boogie,” 2011.  Think Progress, “High Risk Investments,” 2015.  Zero Hedge, “The Bubble is Complete,” 2015.  Bustle, “Is the ‘Big Short’ Right?, 2016.  Bloomberg News, “Goldman Sachs Hawks CDOs,” 2015.  Huffington Post, “Big Short, Big Wake Up Call,” 2016.  Market Mogul, “BTO, Deja Vu” 2016.  Business Insider, “Trillion Dollar Bubble,” 2016.  Business Insider, “Bubble Ready to Burst,” 2016.  Seeking Alpha, “OK, I get it, the junk bond miracle rally is doomed,” 2016.  Wolfstreet, “CCC rated junk bonds blow past Lehman moment,” 2016.

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Filed under Economy, financial regulation, Nevada politics, Politics

Amodei, Vets, and the unanswered questions

On Monday, May 2, 2016 Representative Mark Amodei (R-NV2) will host a Veterans Town Hall in Fallon, NV for two hours – from 10 am until noon.  That’s nice. Retired vets can make that time frame, working ones perhaps not so much.  [News4] Courting the veterans vote is a long time strategy for the Republican Party, and this bloc constitutes a substantial chunk of the state’s electorate.

Amodei 3 Someone might want to ask Representative Amodei how he felt about the House Appropriations Committee slashing more than $1.4 billion from President Obama’s request for veterans.  The 2016 House proposal reduces VA medical care by $690 million from the President’s request.  And, there was another $582 million cut from construction costs for outpatient services  and priority construction projects.  Additionally, the House proposal cuts funding for military cemeteries, including delaying expansion of cemetery operations in Portland OR, Riverside CA, Bayamon PR, St. Louis MO, and Pensacola FL. [VA.gov]

Another question could be raised about the fate of H.R. 2275 (Jobs for Veterans Act of 2015) introduced by Republican Jeff Miller (R-FL1).  It was referred to committee in the House on May 12, 2015 and hasn’t been heard of since.  [GovTrack]

Should someone ask what happened to the Comprehensive Veterans Health and Benefits and Military Retirement Pay Restoration Act of 2014?  Probably, because this legislation got caught in the brambles of Senate posturing about economic sanctions on Iran, and after passing at least one procedural vote went into oblivion from which it, too, hasn’t returned.

Perhaps we should go back to a particularly egregious moment in 2010 when the Republicans blocked a bill to approve a $3.4 billion program to help homeless women veterans, and homeless veterans with children.  Senator Tom Coburn brought out the “Deficit Dragon” saying, “If we don’t start paying for new programs and continue on our path to bankruptcy we’ll have a homelessness problem beyond imagination.” [HuffPo]  Interesting, by Republican lights we always seem to have enough money to start wars, and to finance them, but when we talk about spending money on the people who actually did the fighting — “OMG, we can’t add to the deficit?”

If the Veterans town hall is really about veterans, then a person might hope that there would be ample attention paid to the issues like homelessness among the veteran population? About what services we should be providing for homeless veterans with children? About how many VA facilities we need to be constructing or leasing for veterans’ care – either in medical or employment terms?

What would not be helpful is to have such sessions devolve into the collection of negative interactions between veterans and the Veterans’ Administration.  Yes, the VA is a bureaucracy, one which has trouble meshing with its counterpart agencies in the Department of Defense (Have we thought about funding computer and IT services in the DoD and VA?)  But, no, it isn’t necessary to create a whipping boy in order to “prove” that government doesn’t work, and other GOP canards, and to “solve” the problems by privatizing services for veterans.

We, as a nation, send people into wars. We promise we will support them. We promise them education, health care, and benefits when they return. We promise their families some burial benefits if they do not. They went voluntarily, under our flag and under our imprimatur.  Therefore, the least we can do as a nation is to keep those promises, and not entangle the funding for older programs and initiatives for new ones in a labyrinth of ideological rhetoric, excuses for inaction, and poison-pill amendments.  We can do better.

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Nevada’s Good News, Bad News Economy: Housing, Wages, and Woes

Nevada’s home foreclosure rate is still not a pretty picture.   The state still exceeds the national average.  This is not an argument to slather on the Doom and Gloom economic message with a trowel, but it is a cautionary item in the prolonged narrative of the effect of the housing bubble, and the continued pressure from low wage employment.

Nevada Foreclosure 4 2016One in every 702 properties is in some phase of foreclosure, with one in every 373 in Lyon County, one in every 448 in Nye County, one in every 468 in Churchill County, one in every 643 in Clark County, and one in every 657 in Elko County. [RealtyTrac]  Dismal as this may seem, it does represent an improvement over Nevada’s record breaking performance in 2008-2010. [LVSun] At the end of 2010 Las Vegas saw one in every 9 home receiving some form of default notice. [moneyCNN]

The good news:

“The December surge in foreclosure starts is not a cause for concern, as it comes from a previously existing supply of distressed properties,” said Andres Carbacho-Burgos, Senior Economist at Moody’s Analytics, which analyzes RealtyTrac foreclosure data to forecast foreclosure trends. “The national pool of distressed mortgages has not increased despite the surge in foreclosure filings.” [RealtyTrac]

The astounding appetite of the Wall Street Casino for a supply of home mortgages to slice, dice, tranche, and securitize seems to have mellowed given that the “national pool of distressed mortgages” (of which Nevada contributed more than its share?) hasn’t increased.  National foreclosure statistics illustrate an effort to “clean up” previous backlogs.  So, if housing isn’t the big downer, what might be?

The Not So Good News: Nevada’s wage growth from 2007 to 2012 was a –6.5%.  Yes, that’s a minus sign in front of the percentage.  This is not the sort of chart that warms the hearth:

Nevada wage growth 2012 In short, whatever general wage growth there was between 2002 and 2008 was given back in the wake of the housing bubble collapse. The average weekly earnings of $835 in 2002 dribbled down to the average weekly earnings of $840 in 2012, a $5 increase in five years isn’t much to applaud.

There’s a bit  better news for 2016.  Weekly wages in the 3rd quarter of 2015 were $860, compared to the $840 of a year ago, up 2.6%. [NWF pdf] Even better, the unemployment rate in Nevada is now reported at 5.8%, a significant improvement over the +/- 14% we were looking at during the Recession. [NWF]  And now, another note of caution.  The greatest demand for employees in the state is for wait staff (2,229 openings), retail salespersons (2,113 openings), combined food prep including fast food (1,793 openings), and cashiers (1,420 openings) [NWF pdf] 

More food for thought:  Only two of the jobs listed with more than 500 potential openings offer wages or salaries above the median income in Nevada.  General and Operations Managers (571) has an annual average wage of $104,832, and Registered Nurses (608) can expect an average about $78,811. By contrast, wait staff averages $22,277, retail salespersons about $27,040, food prep about $19,781, and cooks $27,456. [NWF pdf]

Not to put too fine a point to it, but the occupations most in demand in Nevada aren’t the ones which will do much to improve either the housing market or the actual level of wage growth.

Nevada’s current $8.25/$7.25 minimum wage is not helping the situation.  A informative graphic in the Las Vegas Sun illustrates that a studio apartment rental in Clark County is affordable for someone working full time at $12.12 per hour, 1 bedroom requires $15.13, a 2 bedroom $18.63, a 3 bedroom unit $27.46, and 4 bedrooms $32,60.  Want a 2 bedroom apartment in Clark County? It requires 2.25 jobs at $8.25 per hour.

One of the least helpful suggestions made to the last version of the Nevada legislature came from Senator Joe Hardy (R- Boulder City) who offered the following resolution:

The resolution would repeal a constitutional amendment approved by Nevada voters in 2006 setting a standard minimum wage. Hardy said he would also propose legislation giving the Legislature the power to control the state’s minimum wage and tie the wage to the Consumer Price Index. [LVSun]

Republicans offered up a proposal for $9.00 per hour, still well short of what it would take a minimum wage worker to afford a studio apartment. Democrats proposed a $16/$15 minimum wage – which would just about get someone into a single bedroom rental unit.  Hardy’s proposal went nowhere, as did the other two offerings.

Meanwhile, the income inequality gap increased in the state.

“The states in which all income growth between 2009 and 2012 accrued to the top 1 percent include Delaware, Florida, Missouri, South Carolina, North Carolina, Connecticut, Washington, Louisiana, California, Virginia, Pennsylvania, Idaho, Massachusetts, Colorado, New York, Rhode Island, and Nevada.” [EPI]

If there were ever a way to insure that an economy based on consumer demand could stagnate, then it surely must be related to the incongruous notion that if a few rich people get richer then everyone will be better off. Let me suggest a re-reading of the old classic, “Where Are The Customer’s Yachts?

Let me also suggest a review of the Department of Labor’s myth-busting publication on the effects of raising the federal minimum wage.  Conservative sites have their own “myth-busting” reports but their conclusions are highly questionable, and just as highly generalized,  and none effectively challenges the research from Kruger and Card which demonstrates that there’s nothing “job killing” about increasing minimum wages. [HuffPo]

Nevada’s economy could be improved by:

  • Increasing the state’s minimum wage to at least $13.00 per hour.
  • Continuing to restrict the activity of bankers who want to securitize mortgages, under the terms of existing banking laws and regulations.
  • Continued implementation of the Dodd-Frank Act.

Nevada’s politicians might be improved by asking some pointed questions:

  • Do you support an increase in the State’s minimum wage to $13.00 per hour?
  • Do you support the continued implementation of the Dodd-Frank Act

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Filed under Economy, Nevada economy, Nevada politics

Nevada Ballot Questions 2016: Number 1 Common Sense Gun Safety

Question One on the November 2016 ballot shouldn’t be there… that is, the issue should have been taken care of by the State Legislature.  It wasn’t, so here we are doing it the hard way. The initiative provides:

“The measure, upon voter approval, would require that an unlicensed person who wishes to sell or transfer a firearm to another person conduct the transfer through a licensed gun dealer who runs a background check. A licensed dealer may charge a “reasonable fee” for his or her service. If the measure is approved, those found to be in violation of the law would be charged with a “gross misdemeanor,” which could result in a $2,000 fine, up to one year in prison, or both, depending on the results of a trial by jury.

The measure exempts certain transfers of firearms from background checks, including transfers between immediate family members and temporary transfers while hunting or for immediate self-defense.

Supporters refer to the measure as The Background Check Initiative.As of 2014, firearms could be sold by individuals via advertisements and at gun shows without requiring purchasers to undergo background checks.” [Ballotpedia]

Ammosexual It didn’t take long for the NRA hysterics to go ballistic.  Look for the Code Words:

“This November, Nevadans will have the opportunity to vote down this unnecessary and unenforceable proposal which Governor Sandoval already vetoed in 2013.  Bloomberg’s NYC propaganda may say this is a gun safety measure, but we all know that this measure has nothing to do with safety or addressing crime and would only impact law-abiding Nevadans.  It’s important that Nevadans stand up for their rights and not let New York City money influence the future of Nevada!”

There they go again.  “Unnecessary and unenforceable,” is an interesting bit of sloganeering, which doesn’t come close to the rational .  We have laws on the books to criminalize robberies – but robberies still take place.  That doesn’t mean that our statutes on robbery are unnecessary because they are “unenforceable.”  And then there’s this:

“The exceptions are incredibly narrow and could turn an otherwise law-abiding person into a criminal, unknowingly.  For example, a firearm can be borrowed to shoot at an established shooting range; however, that same activity away from an established range such as BLM land is not authorized and would constitute an illegal transfer.” [NRA]

Reading comprehension is tricky but the opponents obviously didn’t get the part about “temporary transfers,” so if we’re out hunting and I hand you my gun, this doesn’t constitute a transfer in the legal sense of the initiative.  All this folderol is followed by the usual Faint of Heart Lament “the criminals will ignore it so we can’t do anything.”  Once more,  extrapolating this to its obvious conclusion would pretty much eliminate section 205 of the Nevada Revised Statutes – the ones defining criminal behavior.  We enact statutes like those attempting to curtail credit card fraud, identity theft, and burglary. Thus, we can enact a statute to curtail the unlawful transfers of dangerous firearms.

Straw Man The Straw Man Cometh.  The NRA and ammosexuals argue that the law would be unenforceable without registration, and registration is unconstitutional, un-American, un-holy or whatever.   So, they contend that this is a stalking horse for “gun registration” which leads to “gun confiscation” which leads to the “new world order,” and “tyranny.”

Excuse me while I take a breath.  There is no way to argue an irrational person into rationality.

The Anti-Urbanity Contingent arrives.   It is a “Bloomberg” idea, it comes from New York City. It’s evil?  It’s “New York Values?”  There’s a long and unhealthy anti-urban sentiment that goes back to the popular fiction of the 19th century.  This bit of pure propaganda would have us categorize other New York City inventions as indicative of New York Values, and the Evil City – for example: The Teddy Bear, Mr. Potato Head, Waldorf Salad, and Pizza?  [nyc]  Oh dear, those Teddy Bears might remind children of the story about President Theodore Roosevelt once refusing to shoot a bear because it was tied to a tree. [TRAssoc]

The origin of an idea is immaterial, and relevant only so far as it suggests (but doesn’t prove) some nefarious connections to the irrational fear of something or another.  Nevada statutes are clear about those the state doesn’t want to possess firearms:

Felons. Yes, there are some hysterics who do argue for the “right” of a felon to possess firearms. However, this fringe is fighting against a tide that’s been washing ashore since the 1920s.

Drug Addicts.  I am interested to hear from anyone who believes that a drug addict should be able to upgrade his capacity to steal to support his habit by moving up from burglary to armed robbery.

Fugitives. Again, does the NRA advocate that fugitives, especially those who have graduated to having their pictures up on police bulletin boards and post office displays, have a “right” to possess a firearm?

Adjudicated Mentally Ill.  It seems to me that the cry from the ammosexuals has been that most mass shootings in this country are accomplished by those few who are seriously mentally ill, and constitute a danger to themselves and to the public at large.  

Persons who are unlawfully or illegally in the United States.  I have met a couple of people whose pro-gun enthusiasm is exceeded only by their anti-immigration views.  I wonder if they want “aliens” with guns?

Now, here’s the question: How can we prevent the felons, the fugitives, the drug addicts, the adjudicated mentally ill, and the undocumented from obtaining firearms — IF we don’t adopt a universal system of background checks?  The anti-Question One crowd renders unenforceable the very statutes we rely upon to prevent the dangerous from obtaining the lethal.

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Filed under Gun Issues, Nevada legislature, Nevada politics, public health

Nevada Ballot Questions 2016: The Marijuana Initiative

Marijuana revenue Thus far two ballot questions in the 2016 general election have reached the qualifying status to be assigned numbers by the Secretary of State’s Office. [RGJ]  This means that they have achieved at least 55,234 valid signatures from registered Nevada voters, including at least 13,809 signatures from each of the four petition districts. (pdf )

The initiative to regulate and tax marijuana (Question 1) (pdf) isn’t quite a Fun for All blanket permission slip.  Marijuana may only be purchased from a licensed business; business owners are subject to state review confirming the business owners and business location are suitable; cultivation, manufacturing, testing, transporting, and selling marijuana is to be controlled by state licensing and regulation; selling or supplying marijuana to someone under 21 years of age remains illegal; and, individuals will have to be 21 or older to purchase marijuana. Additionally, driving under the influence remains illegal, and all marijuana sold in the state must be tested and labeled. If this sounds similar to the restrictions on the sale of alcohol, that’s because it is.   And, if this sounds like Nevada wants to emulate the statutes in Colorado, you’re probably right.  The revenue numbers for last October in Colorado were impressive:

“There are three types of state taxes on recreational marijuana: the standard 2.9 percent sales tax, a 10 percent special marijuana sales tax and a 15 percent excise tax on wholesale marijuana transfers. For August, Colorado collected $11.2 million in recreational taxes and fees and $2.0 million in medical taxes and fees, bringing the 2015 cumulative revenue total to nearly $86.7 million. In 2014, total marijuana revenue was $76.2 million.” [DenverPost]

Total taxes, licenses, and fees for Colorado were $61,372,376 in FY 2014-2015, increasing to $97,741,988 in FY 2015-2016. [CO rev dwnld]

Nevada would collect a marijuana excise tax (15%) in addition to sales taxes, and use taxes that apply to retail sales of tangible property. Tax revenues are to be used to pay for administration and regulation (state and local) with the excess remitted to the State Treasurer to be deposited in the State Distributive School Account.  There is a one time application fee of $5,000, an initial license fee of $20,000 and renewal fee of $6,600. Cultivation facilities would pay $30,000 for an initial license and $10,000 for renewal.  Other fees are listed in Section 12 (fee schedule) (pdf) of the initiative.  There’s nothing cheap or easy about setting up cultivation, transport, or sales of marijuana in this ballot initiative.  Before getting too enthusiastic about immediate effects and potential revenue, it’s probably time for a reminder that Nevada really doesn’t have statutory direct initiative:

“Citizens of Nevada may initiate statutes through the process of indirect initiative and constitutional amendments through the process of direct initiative. Once sufficient signatures have been collected, statutory initiatives are first presented to the Nevada State Legislature. If approved by the legislature and signed by the Governor, the proposed statute becomes law. If not, the law is submitted to voters at the next general election. However, upon the Governor’s recommendation (and approval), the legislature may propose an alternative statute to voters. Proposed amendments proceed directly to a vote of the people, but must be approved at two consecutive elections.” [Ballotpd]

This initiative is interesting not only as a revenue enhancement project for a state strapped by Constitutional prohibitions on income taxation, but also as something of a “reverse” wedge issue. Fiscal conservatives may find it an acceptable alternative to increases in business, sales, or property taxation.   Social conservatives may see in it the harbinger of doom, gloom, and social degeneration.   It will be interesting to see how this plays out in the 2016 Nevada general election.

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Filed under Nevada economy, Nevada news, Nevada politics, nevada taxation

They’re Back! Ladies vie for Official Nevada Embarrassment Title

Angle 2016

Just in time for political silly season in Nevada! Sharron Angle, Our Lady of Perpetual Campaigning, is pleased to tell one and all in 8 minutes and 41 seconds, how she’d be a great candidate for Nevada’s U.S. Senate seat.

Perhaps we can get a repeat performance of some of Angle’s classics:

“You know what I’m talking about. You’re paying for things that you don’t even need. They just passed the latest one, is everything that they want to throw at us now is covered under ‘autism.’ So, that’s a mandate that you have to pay for. How about maternity leave? I’m not going to have any more babies, but I sure get to pay for it on my insurance. Those are the kinds of things that we want to get rid of.” –Sharron Angle, mocking the notion that health care coverage for autism treatment and maternity leave should be mandated, 2009 Tea Party rally”  [Phumor]

Or this:

They [Republicans] say, ‘You’re too conservative.’ Was Thomas Jefferson too conservative? I’m tired of some people calling me wacky.” –Sharron Angle, March 21, 2010”  [Phumor]  Maybe if she’d stop saying wacky things people might not comment on it?

Fiore Mag

If this isn’t enough fun – welcome back Michele Fiore, the Bundy Babe from southern Nevada.  There’s always her classic comment about guns on campus: “If these young, hot little girls on campus have a firearm, I wonder how many men will want to assault them,” she told the New York Times. “The sexual assaults that are occurring would go down once these sexual predators get a bullet in their head.” [WaPo]  Nice, for a candidate from Congressional District 3? [h/t Crooks and Liars]

Who’s the best qualified as the Official Embarrassment of the Silver State?

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Filed under Angle, Gun Issues, Nevada news, Nevada politics