As part of our quest to examine what Reno might look like in 2020, we've been asking readers, politicians, academics, business people and industry experts for their ideas. (Submit yours here.)

The following comes from David of Sparks:

Last week's poll was on which suggestion for diversifying Nevada's economy would have the best chance of success. The biggest vote getter was expanding not just green energy but expanding the manufacture of green energy equipment. No. 2 was legalizing gay marriage to capitalize on related tourism.

This week, the topic is raising taxes. Although there are promises not to raise taxes, Nevada has the worst gap between its budget and projected revenues of any state in the nation. We're hurting and, some say, to not raise taxes would be foolish in the long term because the depth of cuts, if that's the only method of balancing the budget considered, would devastate Nevada in the long run. Regardless of whether you oppose raising taxes, let's say they must be raised. If that's the case, who do you think should take the biggest hit for the team?

Nevada's official unemployment rate for 2010 was 14.4% -- bad enough to be the worst in the nation, with Michigan second worst at 12.2%. But the official unemployment rate does not take into account people who have given up looking for work or who have been looking unsuccessfully for a long time. When taking into account all of those "discouraged" workers and those "marginally attached to the labor force," in the words of government statisticians, then the actual unemployment rate is much higher.

The Bureau of Labor Statistics just released a report called "Alternative Measures of Labor Underutilization for States, 2010." It found that Nevada had a real unemployment rate last year of 23.6%, again, worst in the nation. That means about one in every four Nevadans of working age were unemployed. Using this assessment, California was second worst at 22.1%. Some other states of note: Texas, 14.4%; Massachusetts, 14.3%; Utah, 15.1%; and best in the nation, North Dakota with a real unemployment rate of 7.4%.

The national real unemployment rate for 2010 was 16.7%.

You can read the report here.

Forty-four states have a gap between the amount of money coming in and the amount of money that's supposed to go out. And Nevada is the worst.

Among the states with budget shortfalls, Nevada stands as king with a projected $1.5 billion gap in fiscal year 2012. That $1.5 billion is 45.2 percent of the FY2011 budget. To spell it out even more clearly: If Nevada's budget stays the same as last year, the state will be able to pay for less than half of what's supposed to be spent.

The next to worst states in the nations for budget gaps are Illinois (44.9% shortfall), New Jersey (37.4%) and Texas (31.5%). There were four states with budgets that don't require cuts or raising revenues: North Dakota, Alaska, Arkansas and Wyoming - these four had no housing bubble.

The figures come from an analysis by the Center on Budget and Policy Priorities. It writes:

A survey of state fiscal conditions suggests that 2012 is shaping up as states’ most difficult budget year on record.  Thus far some 44 states and the District of Columbia are projecting budget shortfalls totaling $125 billion for fiscal year 2012. 

While states are anticipating significant shortfalls in the coming year, their options for addressing those shortfalls are dwindling.  Federal assistance for states, which has been enormously helpful in allowing states to avert some of the most harmful potential budget cuts, will be largely gone by the end of fiscal year 2011, the current fiscal year.  Nearly one-half of the nation’s governors have now released their budget proposals for fiscal year 2012, and their proposals reflect this grim fiscal reality.  A number of these proposals contain deep cuts to state services on top of the substantial cuts that states have already made since the start of the recession.

In a story on the report, the New York Times noted:

Every unhappy state is unhappy in its own way. But for most, the drop in personal and corporate income tax revenues has devastated budgeting. This is where the four fiscal standouts have some protection, according to Dan White, an economist at Moody's Analytics.

Smaller states with smaller corporate sectors tend to rely less on income taxes, he said, insulating them a bit better from the effects of this recession. Other taxes, especially those on energy extraction, keep flowing in good times and bad.

Here's a look at how Nevada's budget shortfall has changed over the last four years:

And here's how Nevada compares with other states having shortfalls (click to enlarge):

- Mark Robison, Reno Gazette-Journal (thanks to David for tipping me to the story)

Last week's poll asked what the first thing is you'd do to fix Nevada's education system. The winner was to increase the amount of spending per pupil.

This week's poll was inspired by a Las Vegas Sun story looking at various ways to diversify Nevada's economy. You can read it here. (Comment below if you think other suggestions would have a better chance of succeeding than the ones offered.)

In advance from Gov. Brian Sandoval's state-of-the-state speech today, the Las Vegas Sun had a good overview of ways to diversify Nevada's economy so it avoids such crippling financial problems in the future. Read the full story here. These are the suggestions:

1. Renewable energy: In addition to focusing on Nevada's riches in geothermal, wind and solar energy, the story says that focusing on green energy manufacturing is key, given that 90% of solar panels and 50% of wind turbines are imported.
2. National defense: Leverage the state’s many defense sites — the Nevada National Security Site (formerly the Nevada Test Site); Yucca Mountain; Nellis and Creech Air Force Bases; and the Hawthorne and Fallon facilities — to win more government contracts with the Defense, Homeland Security and Energy departments.
3. Health care and bioscience: Market the state as a medical tourism destination for its hospitals and research centers. And the dry climate is conducive to manufacturing food supplements and drugs.
4. Movie making: Nevada is one of only six states that do not offer incentives for filmmakers to shoot movies here. Change that, the story says.
5. Gay marriage: Las Vegas, and to a lesser extent Reno, are marriage destinations. Couples spend money on lodging and restaurants when they marry. It possibly makes sense to bring more here. Excerpt from story:

Extending marriage to gay couples could boost tourism given the scarcity of wedding locales for same-sex couples and pad state coffers with licensing and sales tax revenue. When California legalized same-sex unions in 2008, economists predicted the decision would generate $700 million in new spending, $50 million in state revenue and 2,000 jobs over a three-year period.

One common refrain when discussing Nevada's current economic troubles is that many higher-paying businesses are reluctant to move here because the population isn't educated enough to do the required work. In addition, Nevada regularly ranks near the bottom in education surveys. So chime in on the poll below with what you think should be done first to change Nevada's education system. If you've got a different choice for the first thing that should be done, comment below.

- Mark Robison, RGJ

As part of our quest to examine what Reno might look like in 2020, we've been asking readers, politicians, academics, business people and industry experts for their ideas. (Submit yours here.)

The following comes from David of Reno:

Please share your thoughts by commenting below on new scenarios to improve the future of the Reno-Sparks area in regard to education.

These comments are part of the Reno Gazette-Journal’s “Reno 2020” efforts to spark discussion on Northern Nevada’s path over the next decade. They will be considered by four breakout groups formed Jan. 19 during a Reno 2020 Forum on the UNR campus. Two weeks later, these groups will present their ideas in four categories on what an achievable ideal scenario might look like, what steps are needed to get from our current position to the ideal scenario in 10 years, and what steps are needed in the next year or two to achieve the ideal scenario. The sum of their efforts will create a much-needed vision for the region.

Make for view comments on each category at:

Economic innovation - RGJ.com/2020innovation

Green energy - RGJ.com/2020green

Fiscal policy - RGJ.com/2020fiscal

Education - RGJ.com/2020education (this is the one you’re on)