When Bob Beers previously talked about reining in government spending, it was the state's budget he had in mind.
But his proposed constitutional amendment could end up tightening local government belts the most.
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City and county fiscal and legal staff around the state started examining the Tax and Spending Control initiative Tuesday when the reality sank in that Beers didn't stop with the state.
"I had hoped that he would not include the local governments like they did in Colorado," said Carole Vilardo, executive director of the Nevada Taxpayers Association. "In Nevada, these counties have no home rule and while major population centers can survive, I'm not so sure the rural areas could."
Clark County Manager Thom Reilly said he is not certain whether Beers' initiative means to cover the county's airport, its development services and its capital budget as well.
"We have a taxpayer bill of rights for our operating budget," Reilly said. "But if this would apply to the capital budget, it would place constraints on what we can do. We would lose flexibility in hiring for key areas, like child welfare, the courts, the public defender and D.A."
Beers' initiative covers "all local government spending by cities and counties chartered by the state for three or more years."
It would cap government revenue to the total amount of spending in the preceding fiscal year, with inflation and population growth added. The limit would take effect in the first fiscal year for each city and county after Jan. 1, 2009.
The measure prohibits any additional spending unless approved by voters.
Surplus revenue would go into a budget reserve fund of up to 5 percent of the general fund, with additional revenues being used to reduce property taxes.
"Our biggest issue is that it doesn't give local governments the flexibility to respond to emergencies," said Andrew List, a lobbyist for the Nevada Association of Counties. "It stifles our ability to serve the citizens."
Paul Brown of the Progressive Leadership Alliance of Nevada, which has pledged to oppose the initiative, said some areas of government grow more rapidly than inflation plus population growth.
"What would this do to health care?" Brown asked. "What if there was an outbreak of avian flu with budget demands that we couldn't meet?"
Brown and Vilardo both expressed concerns about a provision in the initiative that would require any fee increase to go to a vote of the people.
"Does that mean that every sewer rate hike has to go to a vote?" Brown asked. "It's going to get expensive holding all those elections."
List said a county might have to wait two years to raise fees that would repair a swimming pool, for example.
"If these fees have to go to a general election and you're in an off year, it could take forever to get something done," List said.
Vilardo is preparing a list of pros and cons on the initiative so she can survey her members and take a formal position on the measure in the near future. She said she is pleased with some of the language in TASC, including a section that requires ballot initiatives to disclose if a 'yes' vote would lead to an increase in taxes.
But Vilardo was concerned with tying fees to inflation and said state government probably will increase fees each year to keep up with the Consumer Price Index. Vilardo said she also was concerned the measure would make it harder for Nevada counties experiencing severe financial hardship.
White Pine County, for example, has been taken over by the state's Department of Taxation.
"It really complicates a county trying to come out of bankruptcy," she said.
Henderson spokeswoman Cindy Herman said the city is conducting a detailed analysis of the measure.
"The city is interested in knowing how it will change how we do business and how it may change the quality of life that residents are accustomed to," Herman said.
Henderson Mayor Jim Gibson, a gubernatorial opponent of Beers, had already expressed personal opposition to the proposal Monday.
Brown said the amendment would put budgets "on automatic pilot."
"You've handcuffed the legislators, the governor and other elected leaders from making any decisions," he said. "It's short-sighted, simplistic and based on a program that failed in another state."
The Colorado Taxpayer Bill of Rights was largely thrown out by voters in an election last month as that state sank deeper into financial crisis.
Beers said Monday he wouldn't be surprised if local governments opposed his initiative.
"On any day in Carson City, half of the lobbyists in the building represent government," Beers said.
Beers will need to get more than 83,000 signatures by June to qualify the amendment for the general election ballot. Voters then would have to pass the measure twice before it could take effect in 2009.
Another proposed constitutional amendment, mirroring California's Proposition 13, is also seeking to qualify for the ballot. That measure, pushed by Assemblywoman Sharron Angle, would cap property tax revenue -- the lifeblood of county government operations.
"This TASC, coupled with the Angle proposition has serious implications," Reilly said. "Is placing this in the constitution the best way to make decisions about our communities and the growth they face?"
Betsy Fretwell, deputy city manager in Las Vegas, said her city, along with Henderson, North Las Vegas, Reno and Sparks, will be reviewing the measure to determine the municipal impact. She said even if the impact is bigger on state government, local governments will feel the pinch.
"A lot of times the tax and spend control measures have had a profound impact on the state," Fretwell said. "Typically if things get tight at the state level, it means shifting things to the local government without any consideration about how we can provide those services."
Public sentiment, however, is good in general for tax and spending control.
In October, a Review-Journal poll found 58 percent of voters statewide supported an initiative that would "cap government spending to increases in population growth plus inflation, with any surplus refunded to residents."
That survey of 625 voters, by Mason-Dixon Polling &Research, was done before the exact language of the measure was filed with the Secretary of State's office.
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CLARIFICATION TO BE FILED
Supporters of the Tax and Spending Control for Nevada initiative plan to refile paperwork today to provide a clearer definition of the proposed constitutional amendment's intent.
The additional definition in Section 3 of the proposed amendment will state that tax revenues earmarked for bond payments are not included in the TASC formula.
Members of the committee pushing the initiative said they decided to clarify the proposed amendment after several supporters asked about bond indebtedness Monday after the paperwork was first filed in Carson City.
State Sen. Bob Beers said he expects the change to be 15 to 30 words.
After the paperwork is filed, the initiative will go through a 30-day review period before signatures can be gathered. More than 83,000 signatures must be obtained by June 20 to qualify for the general election ballot.