Nevada governor calls for permanent teacher pay raises, $1B investment in new housing

CARSON CITY — Gov. Joe Lombardo announced sweeping policy proposals at his State of the State address on Wednesday, from making teacher raises permanent to investing $1 billion in new housing — all while calling for unity in the divided government.

“My fellow Nevadans, to succeed we must focus on what unites us,” the Republican governor said to a crowded Assembly chamber. “We must set our sights on shared goals and rise above harsh political rhetoric. In five months, we will be judged — you and me — by the results we achieve together.”

The speech came on the heels of the November election, where Lombardo successfully fended off a possible Democratic supermajority in both chambers that would have allowed Democrats to override any of his vetoes, greatly reducing his power.

While Democrats still hold majorities in both the Assembly and Senate and can set their own agenda, any bill they pass must be signed into law by Lombardo, who is accustomed to wielding his veto power — having vetoed a record 75 bills in the 2023 session.

Lombardo expressed positivity in being able to work with legislative Democrats to move forward in the session, which will commence Feb. 3.

“I would ask that before some of you say ‘no,’ work with me,” he said. “Collaborate with my agency heads, ask questions, give input, offer alternatives and set aside partisan politics.”

The governor outlined his $12.7 billion executive budget and five pieces of legislation he will introduce that he said reflect his vision for Nevada’s future and aim to improve government efficiency and provide financial relief to taxpayers.

Highlighting concerns of inflation, housing and health care costs, Lombardo promised not to raise taxes on families and proposed changes that would save taxpayer dollars.

Some major topics were missing from the governor’s speech, such as immigration — a priority for the upcoming Trump administration — and water, a challenge the Western state continues to work on.

Education priorities

Lombardo, who has campaigned as the next “education governor,” announced plans to make teacher pay raises permanent — a proposal that probably will receive bipartisan support, as Sen. Nicole Cannizzaro, D-Las Vegas, made a similar proposal in her education bill. He also announced he will extend pay raises to all charter school teachers.

Lombardo’s proposed Nevada Accountability in Education Act aims to increase accountability in the school system, expand open enrollment policies to reduce geographic barriers and provide transportation support to children, he said.

The education legislation includes an “Excellence in Education Fund” that will reward the state’s highest-performing teachers and administrators, as well as provisions for school choice, which was a source of conflict between his party and legislative Democrats in the past. Speaker Steve Yeager said in a recent interview there is no appetite among Democrats for discussing Opportunity Scholarships.

Health care reforms

Lombardo announced a proposal to split the Department of Health and Human Services and create the Nevada Health Authority, which would manage Medicaid, employee benefits, mental health funding and other services, he said. The new agency would be led by Stacie Weeks, the state’s Medicaid administrator.

The agency will also include an Office of Mental Health to expand access to behavioral health services, he said.

Lombardo said the Nevada Healthcare Access Act aims to reduce delays for patients and providers. It would require all health insurance plans in Nevada to adopt standardized and digitized prior authorization plans by 2028. It would also double the state’s investment in graduate medical education and provide incentives for providers to work in underserved areas.

Housing priorities

Lombardo announced his Nevada Housing Attainability Act, which would put forward $1 billion for what he called new “attainable” housing units and reduce fees, foster innovation, provide incentives for development and create public-private partnerships.

The governor has blamed the state’s housing crisis on the slow release of federal land for development, and he echoed that sentiment Wednesday night, saying bureaucratic delays in opening the over 80 percent of federal land in Nevada has driven up costs.

In a nod to the upcoming federal administration, Lombardo said he has spoken with both the congressional delegation and President-elect Donald Trump about the importance of getting more federal land released, and he has “great confidence that the president understands and will help,” Lombardo said, receiving applause from fellow Republicans.

In the crowd, Las Vegas-based hotel magnate Robert Bigelow, a major donor of Lombardo’s campaign, sat in the upper chamber.

Receiving applause from both Democrats and Republicans, the governor also said a route for housing attainability will be achieved by streamlining permits and prioritizing every buildable acre of land rather than out-of-state investors.

Crime reforms

The governor’s proposed Nevada Safe Streets and Neighborhoods Act aims to support victims of crime, hold repeat and violent offenders accountable, and invest in curbing drug abuse, Lombardo said.

The bill would reduce the felony theft threshold and enhance stricter penalties for repeat offenders, and it would reduce trafficking thresholds. It would also strengthen penalties for DUI convictions, domestic violence, stalking and cyberstalking.

Economy and elections

He also announced his Economic Development Policy Reform Act, a large piece of legislation that includes incentivizing companies to come to Nevada. One example he proposed was targeted tax credits for child care facilities.

The governor repeated his calls for election reform, such as the implementation of voter ID and changing the deadline to count mail ballots. He brought up the voter ID ballot question that received overwhelming support in the November election.

He expressed hope bipartisanship could be reached in those election reform bills by working with Democratic Secretary of State Cisco Aguilar. Republicans clapped, while Democrats such as Yeager and Cannizzaro remained quiet in their seats.

Touting his record

The governor highlighted the state’s accomplishments since he’s taken office, such as reducing the employee vacancy rate from 25 percent to 12 to 13 percent and putting a record $1.3 billion in the state’s rainy-day fund.

Lombardo also highlighted achievements on education made in the 2023 session — which has a similar party makeup as the current legislative session — including adding more than $2 billion in education funding and increasing accountability in the schools and expanding state-funded Pre-K.

Lombardo closed his speech reiterating his call for unity, invoking Abraham Lincoln and Thomas Jefferson.

Contact Jessica Hill at jehill@reviewjournal.com and McKenna Ross at mross@reviewjournal.com. Follow @jess_hillyeah and @mckenna_ross_ on X.