Lawmaker: Tap water district money

A lawmaker says the state should tap the largesse of the Southern Nevada Water Authority to avert further cuts to education and other vital services.

Assemblyman Joseph Hogan, D-Las Vegas, wants the upcoming special session of the Legislature to include his proposal to divert part of a quarter-cent sales tax in Clark County from the water authority to lessen the fallout of cuts aimed at eliminating a budget shortfall estimated at $887 million.

Hogan said in a letter to legislative colleagues his proposal could be worth $70 million to $90 million annually and wouldn't require a tax increase, something Democratic and Republican legislators say they want to avoid.

The water authority says it gets 62 percent of the tax and has collected $469.6 million in the 11 years since it was enacted, or $42.7 million per year to the authority. An additional $284.7 million has gone to the Clark County Sanitation District, the cities of Henderson and Las Vegas, projects in the Las Vegas Wash, Boulder City, Laughlin and other users.

Hogan argues the water authority can get by with less money because the recession has flattened demand for water and because a recent ruling by the Nevada Supreme Court put the brakes on a multibillion-dollar plan to build a pipeline to carry water from eastern Nevada to the Las Vegas Valley.

"Whatever water we have now can be made to suffice, because we don't have growth and new buildings," Hogan said.

Republican Gov. Jim Gibbons has said he would amend the special session agenda to include any idea that is "good for the state of Nevada," and legislative leaders have said "everything is on the table" when it comes to balancing the budget, especially if it can be done without further cuts to education.

Assembly Speaker Barbara Buckley, D-Las Vegas, said the special session isn't the time to tackle a sales tax diversion, though.

"We have one week to finish our preparation," she said of the upcoming session. "We need to be very cautious about undertaking any major policy initiative without thoughtful review."

An earlier version of Hogan's plan died without a vote in the 2009 legislative session. It was strongly opposed by the water authority and other local government entities, because they say it would have dire consequences for the development of pipelines under construction so communities can continue extracting water from a shrinking Lake Mead.

"If you eliminate this you essentially are eliminating our ability to pay for these projects," said water authority spokesman Scott Huntley.

Huntley says money from the sales tax stays in Clark County and isn't used to fund the proposed pipeline the water authority says could diversify Las Vegas' water supply with groundwater from eastern Nevada.

Prospects for the pipeline are in doubt following a Jan. 28 ruling by the Nevada Supreme Court that stated groundwater applications that would have made it possible are invalid.

The water authority wants the Legislature to use the special session to get around the ruling, but so far such a move isn't on the agenda.

Hogan wants to take advantage by reviving something similar to Assembly Bill 321, which he introduced last year.

Hogan's 2009 proposal would have diverted the money directly to the state, according to testimony he gave to the Assembly Committee on Taxation.

This time he's suggesting diverting it to the Clark County general fund. Such a move would help the state, Hogan says, because Clark County could use the money to offset harm to local residents caused by state budget cuts.

But many of those who testified against the idea are likely to be back in Carson City for the special session.

"Down here the water district is pretty powerful, and they have a network of supporters in gaming and development," Hogan says.

Critics of AB 321 include the City of Henderson, Clark County, the Nevada State AFL-CIO, the Home Builders Association and the Nevada Taxpayers Association.

Reasons they cited in opposition to the idea include that it would violate the will of Clark County voters, nearly 72 percent of whom voted in favor of the quarter-cent tax for water infrastructure in 1998.

Others said the money is used to bolster water treatment, including efforts to treat wastewater, prevent harmful chemicals and prescription drug residue from getting into the water supply and building a new, deeper intake pipe to extract water from Lake Mead.

The biggest chunk of the authority's share of the cash was used to build large pipes, called laterals, to move water from treatment plants at Lake Mead to communities like North Las Vegas, Las Vegas, Henderson and the rest of the urban areas of the valley.

"For those of you who represent districts in the south, this funding is utilized to treat the water that you drink, the water that you bathe with, as well as the water you use every day," Constance Brooks, a senior management analyst in the Clark County manager's office, testified to the committee last March.

Hogan says he knows his proposal is a long shot for consideration, despite statements by leading Democrats and Republicans saying they're willing to consider unconventional ideas.

"If the times have changed as sharply as they have maybe it will get a chance," he said.