Clark County would lose big under Gibbons’ budget plan

Clark County government would lose $32 million to $47 million in yearly property tax revenue to state government under the governor's budget proposal, leading to extensive program cuts and as many as 350 layoffs, county officials said Friday.

"The impacts would be enormous," said Don Burnette, the county's chief administrative officer.

Gov. Jim Gibbons contends that taking a portion of the county's property tax revenue is needed to help offset the state's budget shortfall and avoid raising taxes in tough economic times. Critics, especially within the Democratic ranks, argue that he's appeasing anti-tax conservatives with an unrealistic plan.

The county's general-fund budget was about $1.4 billion in 2008. The governor Thursday evening proposed a $6.17 billion two-year budget for state government, about 9 percent less than the budget approved for the previous biennium.

Burnette said the county would be hard pressed to absorb $32 million in losses, the low estimate. "That's roughly the amount we spend on the court system," Burnette said.

County Commission Chairman Rory Reid said some state Democratic lawmakers told him they are working on an alternative plan to avoid siphoning tax revenue currently kept by the county, but that they couldn't give any details.

"I'm pleased they recognize this would be damaging to the county's ability to deliver critical services," Reid said.

Reid said he is continuing to talk with union representatives about re-negotiating contracts and perhaps scaling back pay raises. So far, nothing has been agreed upon, he said.

Service Employees International Union Local 1107 represents roughly 9,500 county workers. Union officials couldn't be reached for comment Friday.

SEIU leaders have stated that they have no intention of changing the county's current labor contract, which expires in mid-2010.

"Those are binding contracts," Burnette said.

County government employees' wages are increasing by 6 percent a year on average when cost-of-living and merit raises are combined, he said.

He noted that a 3 percent cost-of-living raise will go in effect across the board in July.

Each 1 percent raise costs taxpayers about $4 million, Burnette said. However, it wouldn't be realistic to offset a loss of $30 million-plus by trimming workers' raises and wages, he said.

As part of his budget proposal, the governor called for a 6 percent wage cut for state employees and school teachers to avoid massive layoffs and service cuts. He also proposed that they pay more of their medical insurance costs.

The county pays a portion of the cost for its employees' retirement and health benefits, Burnette said. But because this arrangement is tied to the union contracts, the county can't demand that employees pay more, he added.

Besides, shaving these benefits would make no dent in revenue losses of this scope, Burnette contended.

Like the state, the county is struggling with anemic growth in property tax revenue during the recession, he said.

Commissioner Larry Brown said the county is already curbing costs by leaving 350 jobs unfilled and slashing some services at University Medical Center.

"We are doing everything we can within our means to address our budget shortfalls -- and then for the state to come in and want the county to solve its budget problems too," Brown said.

Brown said a concerted effort by the state, county and cities will be necessary to get through the crisis.

The state can't simply take from the county and push it into deeper financial trouble, Brown said.

Contact reporter Scott Wyland at swyland@reviewjournal.com or 702-455-4519.