As the Nevada Legislature begins the 2023 session in Carson City, robust tax collections have allowed Gov. Joe Lombardo to put forth the largest budget in the state’s history. In addition, billions of dollars are available thanks to the American Rescue Plan Act and other federal programs to help Nevada address deficits in education, health care, housing, environmental sustainability, transportation and workforce development.
The massive influx of federal funds, intended to invigorate and restart local and regional economies in the post-COVID-19 environment, has the potential to create more prosperous, equitable and resilient regions in our state, and diversify our economy by jump-starting new initiatives as we strengthen and support our existing economic advantages.
In Nevada, the largest urban areas drive their state economies. An analysis by the Brookings Institution found that in 2020, the Las Vegas-Henderson-Paradise (68.8%) and Reno (18.1%) metros combined to generate 86.9% of Nevada’s gross domestic product.
Only nine states generate more GDP in their large metros than Nevada, and the Las Vegas-Henderson-Paradise region is one of only 16 metros that generate more than 50% of state GDP. As we note in our book “Blue Metros, Red States: The Shifting Urban-Rural Divide in America’s Swing States,” tensions often develop between large, fast-growing, ethnically and racially diverse Democratic-leaning metros, and legacy policy institutions that afford outsize power to smaller Republican-voting areas.
By recognizing the importance and differences between Nevada’s three economic regions — Greater Las Vegas, Reno and the rurals — we need not fall into this partisan, geographic divide. Rather, state government should be an engaged partner that sets the parameters for regional governance and encourages regions to develop the local innovations and solutions that are appropriate for their needs.
While state and local leaders may have legitimate policy differences, these differences should not derail opportunities to improve the lives of Nevadans. Massive federal programs such as the Build Back Better grants and other place-based policy initiatives require collaborative, shared engagement to secure funding.
Structurally, Nevada is a Dillon’s Rule State, which is to say that any powers not specifically granted to local governments default to the state. If state and local authority is not coordinated — a particular challenge in a state with a biennial, 120-day legislative session and a capital that is located far from the population and economic engine — the ability of schools, businesses and regional organizations to teach, employ and innovate for the benefit of all Nevadans is compromised.
Our large cities and small towns are where Nevadans know best what policy interventions are needed to meet our economic and social challenges. State and local officials can serve as an example to the nation by enhancing innovations in our regional economies, sharing both responsibility and oversight for the expenditure of state and federal funds, and demonstrating that effective governance can restore faith in our government and in government officials.
To this end, we are encouraged by the introduction of legislation allowing local governments more authority over housing affordability and municipal incorporation, and bills updating city charters, increasing the capacity of regional transportation commissions and evaluating the costs of unfunded mandates on local governments.
Meaningful partnerships between state and local government will be required to plan, implement and sustain needed enhancements to our transportation systems, to our climate and energy initiatives, and to expand and improve broadband systems, just to name a few critical programs.
This is a tall order but the possibilities — to create better jobs, to educate our children and train our workforce, and to make all our cities and towns welcoming, affordable and sustainable places, are certainly worth the effort.
William Brown is UNLV director of Brookings Mountain West. David Damore is interim executive director of The Lincy Institute and Brookings Mountain West.