Road to recovery

Gov. Brian Sandoval delivered an upbeat speech last week to a Las Vegas business group, touting the state’s steady economic progress.

“Nevada is finally on the move and we cannot jeopardize that momentum,” he told the Keystone Corporation on Wednesday, adding that the state’s finances are in their best shape since 2007.

In the past year, the governor noted, Nevada has gained back 10,000 of the 170,000 jobs it lost during the recession, while sales tax collections have increased for 19 straight months and monthly gaming revenues recently passed the $1 billion mark for the first time in three years.

The state still faces serious challenges, of course. The housing market continues to be a drag on recovery and it’s doubtful the Southern Nevada construction industry will ever again reach its pre-recession heights.

But Gov. Sandoval told the gathering of about 150 business and political leaders that he hopes to address some of these looming hurdles by convincing out-of-state firms to take advantage of the state’s business-friendly environment. His goal is to create 50,000 new jobs in the state by 2014 through a streamlined economic development plan designed to entice companies to Nevada.

He noted other states use tax and land incentives to attract investment.

Texas Gov. Rick Perry “would like nothing better than for those California firms to leap over Nevada and come to Texas,” Gov. Sandoval said. “He said if Nevada does nothing, Texas is going to kick your butt.”

No doubt competition among states looking to lure existing operations or startups remains robust. But the governor and his economic development team must be careful not to enter Nevada taxpayers in a race to the bottom, offering giveaways that don’t pencil out in their eagerness to beat another state’s subsidy package.

And let’s not forget the public sector’s dismal track record when it comes to steering taxpayer funds to favored businesses – witness the president’s costly failures in his zeal to promote green energy.

Ultimately, the goal must be to foster a stable tax and regulatory environment that helps existing businesses succeed and thrive, while gaining the attention of executives and entrepreneurs eager to learn what Nevada has to offer. That combination will go a long way toward ensuring the Silver State prospers well into the future.