An Interim Finance subcommittee on Wednesday voted unanimously to hire Moody's Analytics for the tax and revenue study ordered by the 2009 Legislature.
"I think we were very fortunate to have as many proposals as we did receive and I think any of them would be very credible and do a good job," Senate Minority Leader Bill Raggio said of the four finalists. "My concern is that this be a meaningful study. You know, there's a lot of criticism out there. Everybody says we do studies and they end up on a shelf."
Moody's, a national firm that has done numerous economic forecasts and studies of state and local government finances and revenues during the years, was one of eight bidders seeking the contract. The lawmakers directed staff to work out a contract in time for approval by the November IFC meeting in line with the company's $253,000 bid for the project.
Moody's was far from the most expensive. Only one of the final four, Willdan Financial Services of Sacramento, was lower at $153,205. Willdan was the unanimous second choice Wednesday in case a contract can't be worked out with Moody's.
The most expensive bid was by the UNR Center for Regional Studies at $909,861. While Raggio and others on the panel were complimentary toward the qualifications UNR has for the task, they didn't like the price and the appearance of conflict caused by the fact UNR gets much of its budget from the state revenue system it would be making recommendations to change.
Moody's officials said they are the only firm that produces a forecast every month for all 50 states, 392 metropolitan areas and more than 3,000 counties nationwide.
The fourth finalist for the work was Nevada Consultants Inc. of Las Vegas which submitted a $500,000 bid - matching the amount tentatively approved for the project by the Board of Examiners. The final contract will set the actual amount to be used.
The purpose of the study is to develop recommendations on possible changes to Nevada's tax and revenue system designed to smooth out some of the peaks and valleys caused by economic swings, stabilize state revenues from year to year and produce the amount of cash needed to fund state services. It is to be completed in time to present to the 2011 Legislature.