Race for Nevada's chief fiscal officer focuses on collecting debt, government transparency

On paper, the race for Nevada controller might be among the most lopsided this November.

Incumbent Andy Matthews (R), who as controller serves as the state's chief financial officer,  won by more than 40,000 votes four years ago after serving one term as a state lawmaker. He also had a campaign war chest of almost $300,000 at the end of June and has a six-figure ad buy on digital and streaming platforms.

His opponent, Michael MacDougall (D), is a high school teacher and small-business owner who had never run for office before. He had only about $10,000 in his campaign account at the end of June — a financial deficit he admitted could play a role in the campaign.

But the race for controller — perhaps Nevada's least known statewide office — could boil down to the overall political environment, which election analysts say might be good news for Democrats up and down the ballot.

The candidates acknowledged this but said they are focused on running their own campaigns.

"When we get across the finish line and I win, it could be 100 percent because of the general sentiment of the country," MacDougall said. "I'm not going to ignore that. I don't count on it in the sense that I rest on those laurels."

Matthews also said he's confident he could overcome any headwinds against Republicans.

"I do think I've got a strong record of success and achievement, and it's a record that I look forward to bringing before voters," he said.

Aside from the overall election landscape, the race might come down to how voters feel about Matthews' leadership and whether MacDougall's criticisms land hard enough.

The controller leads an office of about 45 people and is tasked with overseeing the state's accounting system and collecting debts, among other responsibilities. It also oversees the release of an annual financial report but does not have special authority to set the state's financial policies.

The controller also sits on a state transportation board, a position MacDougall said he would use to advocate for better access to public transportation. 

In his campaign, MacDougall is leaning on his experience helping run his family's three-generation real estate business.

"We wouldn't be a successful third generation small business if we didn't know how to pay our bills, pay our taxes, pay our fees, keep ourselves running and ensure some sustainability," he said. "I can bring those skills into government as well."

Matthews is focusing his campaign around having fulfilled a promise from four years ago to create a website that posts state spending in real time. That website, called the Nevada Open Finance Portal, launched about a year after he took office.

His first campaign ad, titled "Penny," features Matthews saying "I put state spending online so you can track every penny of your tax dollars — just like I said I would."

"We should all be able to get behind the concept of open and transparent accountable government, and that was my motivation in doing this," he said in an interview.

Could a financial report decide an election?

One headache of Matthews' tenure has become the center of MacDougall's campaign.

The controller's office is required to file an annual report outlining every detail of the state's finances, but it has taken years to finish certain reports.

Publishing delays result in an incomplete picture of the state's financial system, and in extreme cases, could result in a lower bond rating, which hurts the state's ability to borrow money.

Last year, a think tank criticized the state for taking 777 days to file its financial report for fiscal year 2023. The state typically wants to submit the report within nine months of the end of the fiscal year.

"The current Republican Controller has failed in his duty to ensure this annual report is up to date in alignment with policy and law," MacDougall's website says.

The latest report did shave off about 50 days, marking the first time in six years that the filing time decreased. Matthews has said it is because of his work with the Legislature to bolster staffing.

"This couldn't have been done without my efforts, but also couldn't have been done without the support of the governor's office, couldn't have been done without the support of the Legislature," he said. "I think we're in the process of writing a really good bipartisan success story."

MacDougall said "it's good to see the improvement."

"I just kind of have the question about whether or not it's sustainable long term," MacDougall said. "There's nothing to promise that there won't be some kind of sand turned into the gears."

A lot of state debt

Collecting unpaid debt is a key part of the controller's office.

Since the start of 2023, the state has written off about $118 million in so-called "bad debt," meaning state officials have deemed it impossible or impractical to collect. The state also has consistently had hundreds of millions of dollars of debt expected to be uncollectible, with that number at $387 million last year.

MacDougall — and Attorney General Aaron Ford, the Democratic nominee for governor — have made collecting the debt a central part of his campaign. 

"We need to make it a focused point of enforcement, and one of the ways you do that is increasing staffing there," MacDougall said.

Matthews acknowledged more can be done to collect the debt. He said his office intends to pursue funding to modernize its 10-year-old debt collection system so that it can work alongside the state's existing finance system. 

The office also plans to pursue an AI-related initiative to modernize the debt collection process — which it said could save time used for collection calls — and additional staffing to help with these projects.

"That's gonna be a continued priority for us," he said.