Analysis: Gov. Lombardo’s Economic Development Bill Little More Than Corporate Handouts

CARSON CITY — Last week, Gov. Joe Lombardo’s office quietly introduced an economic development bill. But a new analysis compiled by the Nevada Revenue Coalition this week found the bill would do little to address the potential impacts of a looming tariff-driven recession. Instead, the analysis found, it would prop up a massive corporate tax giveaway that would weaken the state’s tax base and ignore increasing pricing pressure from President Donald Trump’s trade war.

Lombardo’s plan would require at least $124 million in state funding, in large part to fund a massive expansion of corporate tax credits. That includes unprecedented tax credits for childcare corporations that routinely underpay workers, and a tech industry that has pitted states across the country in a race to the bottom to see who can give away the biggest tax deal. It would also do away with diversity initiatives passed with wide bipartisan support under Gov. Brian Sandoval.

It comes despite projections from the state’s economic forum that – as Trump tariffs crater tourism – Nevada’s projected budget will shrink by at least $191 million, with the education budget falling by an additional $160 million.

The full economic analysis of the governor’s bill can be found here.

Andrew Clarke, Revenue Coalition Manager at New Day Nevada, issued the following statement:

“While public employees brace for cuts and classrooms remain underfunded, Governor Lombardo is doubling down on giveaways for the corporations that need help the least. His plan expands transferable tax credits—corporate subsidies with no meaningful guardrails and no proven return on investment. It’s a strategy that’s failed time and again, and yet he’s treating it like a solution.

This isn’t economic development—it’s economic denial. At a time when our state budget is shrinking and federal cuts threaten critical services, we need to reinforce our foundation, not carve out new holes. We should be asking the wealthiest to pay their fair share—not handing out more tax breaks. Nevada needs progressive revenue solutions that invest in working families, not another race to the bottom.”

Shelbie Swartz, Executive Director of Battle Born Progress, issued the following statement:

“It should go without saying that wanting to diversify Nevada’s economy is a good idea. However, the details matter, and while the Economic Forum laid out a picture of Nevada’s budget that will put real strain on critical programs, all Gov. Joe Lombardo’s office can think of proposing are tax credits piled on tax abatements. All state revenue thrown into the woodchipper, corporate giveaways for no one that lack the vision necessary to truly transform Nevada’s economy. But what should we expect from the governor who said Nevadans ought to ‘feel a little pain’ from the Trump tariffs now decimating tourism. Childcare, housing and education are all worthwhile goals that deserve our time, investment and attention. It’s a shame all Lombardo can think to do is prop up corporations and Trump’s witch hunt against DEI.”

Dawn Etcheverry, President, Nevada State Education Association, issued the following statement:

“Education is economic development. States with strong public schools attract families, fuel long-term investment, and draw businesses looking for a skilled workforce. Public funds should serve the public good, not subsidize corporate profits. Even before the Economic Forum’s dire budget forecast, Gov. Lombardo proposed just a $2 increase in per-pupil funding next year. Now, with a $300 million shortfall, he’s still pushing handouts for giant corporations while Nevada ranks 47th in the nation in per-pupil funding and has the largest class sizes in the country.

Every dollar spent on corporate tax breaks is a dollar not spent reducing class sizes, hiring and retaining educators, or repairing crumbling school buildings. If Nevada’s schools are underperforming, it’s not because of educators or students, it’s because we fund education like an afterthought. It’s easy to do the right thing when times are good.

True commitment to Nevada’s schools is revealed when times are tough. Right now, the governor is failing that test.”

Stacey Shinn, Nevada State Director for SiX Action, issued the following statement:

“In a moment when Nevada’s budget crisis requires meaningful action, Gov. Joe Lombardo has given lawmakers a bill that is anything but. This bill would hang working Nevadans out to dry while some of the country’s biggest corporations get even bigger tax breaks. It’s a trickle-down policy that will do nothing to stop the most severe impacts of Trump’s tariffs, and it will whittle down our state budget at a time when Nevadans and the services they rely on need that funding most. Under these economic headwinds, the state’s priority should be protecting Nevadans, not corporate profits.”

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About Battle Born Progress: Battle Born Progress, through strategic communication efforts, empowers, engages and mobilizes Nevada voters to build a state where everyone has a fair opportunity to succeed. We support, engage, and mobilize the progressive community through bold leadership, strategic communications, accountability, and education. We are on the cutting edge of new media and are the go-to source for progressive issues and advocacy for traditional media.