Ron Knecht: Of road repairs, city revenues and mayoral elections

Road repairs and city revenues to fund them are big issues in this year’s Carson City elections. City streets staff and their engineering consultants say we need $21 million more annually in revenues through 2050 for road maintenance and related costs. So, city supervisors have placed two questions on the ballot to test residents’ appetites for more taxes and fees for this purpose. And the two mayoral candidates are focused on the issue.

I write not to take a position on the two ballot measures, but to clarify some points that have arisen in the mayoral race. My friend, mayoral challenger Jim Shirk, says Mayor Lori Bagwell and supervisors “have been sitting absent-mindedly on this $21 million deficit … for years. Never taken any action whatsoever!”

First, the need for such new funding was identified in October 2022, less than two years ago. City streets staff and their consultants may be estimating the number high because the new revenues will flow to them if approved. But even if sharper pencils could reduce the calculation, it will still be substantial millions.

Since 2016, the supervisors have budgeted $28,428,822 in 11 one-shot additional road funds appropriations, plus $2,022,940 in three ongoing road spending amounts. Over $30 million in funding (three-fourths of it since 2022) is not sitting absent-mindedly on a recently identified deficit, let alone never taking any action whatsoever!

The real problem is that road construction costs increased by 123 percent from 2000 to 2022, and these costs continue to skyrocket. City-owned street miles rose only 28 percent, while gas tax revenues increased only 25 percent as population grew 10 percent.

Much of the already experienced cost increases and those to come are driven by public policy. First is the general cost inflation caused by excess government spending and money-printing. Second is the continuing metastasis of regulation at all government levels that greatly drives up costs. The only thing Carson can do about these problems is restrain its own regulatory impulses, especially in zoning, building and other areas.

Shirk criticizes Bagwell for not imposing new impact fees on housing developments, as if those projects are a net cost burden to the city (and as if she could do so unilaterally). The fact gas tax revenues increased 15 percent faster than population in 22 years completely undercuts that argument. Further, Bagwell’s position is that, in view of the complaints about road conditions, voters should decide via the two ballot measures whether taxes should be raised for roads.

Finally, Shirk says, “[W]e must create and adhere to a strategic spending plan that realistically balances projected revenues against city expenditures.” That sounds good. But he gives no hint how to do so. As a former supervisor, he should be able to provide significant procedural and substantive detail on how to do that.

Carson voters face tough choices this year on the tax measures. And they have stark choices for mayor. Bagwell has a great community service and government leadership record. Shirk needs to answer that by telling us how he would solve our toughest issue.

Ron Knecht was state controller, a higher education regent, senior economist and Assemblyman; also, first chairman of Carson City’s Water & Sewer Financial Advisory Committee and senior fellow at Nevada Policy Research Institute. RonKnecht@aol.com.