Mining resurgence cures White Pine’s financial woes
CARSON CITY -- Nevada lawmakers were told Tuesday that White Pine County has emerged from a financial emergency that threatened the local government with insolvency.
Dino DiCianno, executive director of the Department of Taxation, told members of the Legislature's Interim Finance Committee that the eastern Nevada county's severe financial emergency is over.
A resurgence in the mining industry is a major reason for the turnaround, he said.
"We have been successful in avoiding insolvency in White Pine County," DiCianno said. "They have a positive cash flow now. They have a positive cash balance of approximately $1.8 million."
The county has also repaid a $200,000 loan and has begun removing emergency taxes put into place to help with funding issues, he said. One was a 1 percent room tax that has now been removed.
"One of the success stories for that community is mining," DiCianno said.
Because of the Robinson Mining District, the county has received about $9 million in net proceeds funds, he said.
The state Tax Department is now working on a transition plan to move the county from a severe financial emergency to a level called technical assistance. That plan will be presented to the Tax Commission in early 2008.
Senate Finance Chairman Bill Raggio, R-Reno, praised the county for getting out of a deep financial hole. He also praised the Tax Department for its assistance to the county.
"That shows real effort on the part of the people in White Pine County," he said. "They were in a deep hole, and to dig themselves out over that period of time, it didn't look that feasible when it was first brought to our attention."
The state Tax Commission in mid-2005 voted unanimously to declare a severe financial emergency in White Pine County, which had overspent its budget despite more than $1 million in cuts.
It was the first time the state has declared a severe financial emergency for a Nevada county.
State officials took charge of all financial decision-making for the county as new policies and controls were implemented.
