North Las Vegas ’emergency’ tactic hasn’t been tried, experts say

Across the country, local governments are becoming desperate as they run out of money.

Some, such as North Las Vegas, are more desperate than others.

"What you've got in Nevada is a new wrinkle on this," said Chris Hoene, director of research at the National League of Cities.

The North Las Vegas City Council is scheduled to vote this week on an unusual proposal from City Manager Tim Hacker that would essentially declare the city a disaster area, void union contracts and allow the city to get on semi-solid financial ground.

Hacker has proposed a resolution using a state law that allows cities to suspend union agreements during riots, natural disasters, military actions and incidents of civil unrest.

Hoene said he had never heard of another city using a law designed for physical emergencies during a financial emergency. No one else has, either.

Neither the state attorney general's office nor the Legislative Counsel Bureau would comment on the legality of the proposal.

City officials say City Attorney Jeffrey Barr consulted with outside counsel on the measure.

Whether the resolution will hold up in the long run if it passes is an open question. Union officials have vowed to fight it in court if it gets the council's OK.

City officials feel backed into a corner by unions that, they say, won't give up scheduled raises and other benefits. Without concessions, the officials say, they have two choices: They can lay off so many cops and firefighters that the city becomes unsafe, or they can force the concessions in the same way they would during prolonged rioting or a massive earthquake.

Layoffs are too dangerous, they say, pointing out how short-staffed their public safety departments already are, so they're going with force.

"It's very unique," said Christopher Stream, a professor in the School of Environmental and Public Affairs at the University of Nevada, Las Vegas. "It would be rare for something other than a fire, flooding, a 9/11-type situation."

Mayor Shari Buck has already publicly backed Hacker's proposal, which is scheduled to be voted on Friday.

City Council members Pamela Goynes-Brown and Wade Wagner wouldn't say how they will vote, though both appeared to send strong signals that they supported the measure. Council members Anita Wood and Robert Eliason didn't return phone calls seeking comment.

"We're in a fiscal emergency right now. Bankruptcy is not an option. The state can't absorb what we're doing. Other municipalities can't either," Wagner said. "It's just the reality of where we are."

Goynes-Brown said she didn't want to talk about the specifics of the resolution, but noted that the council supports its city manager.

"It depends on how our special meeting goes," she said. "We're hoping our unions come to the table."

Union officials have balked at the proposal, outright laughing at the attempt.

But it might not be as ridiculous as it sounds.

Hoene said cities around the country have resorted to other measures to suspend collective bargaining agreements with unions. North Las Vegas spends more than 80 percent of its budget on salaries, officials there say. Hoene said that is not unusual.

He said some jurisdictions have laws that specifically allow cities to suspend collective bargaining agreements during financial crises. Others have resorted to bankruptcy or allowing the state to take over or, rarely, disincorporation - the dissolving of the city entirely.

"It's not a completely new idea," he said of the move to suspend union contracts. "Cities are looking for ways to reset their contracts with their employees."

Stream said the city might not have a choice but to try the unusual move. What else can they do?

"That's exactly the question," he said. "There are very few options in this kind of situation."

Despite its libertarian reputation, the state government in Nevada controls much more than in some other states. Cities here are virtually powerless to raise their own money, something local officials have lobbied to change for years.

Taxes in Nevada are collected and sent to the state, which then uses a complicated, often politically driven formula to reallocate them to local agencies.

"When you get down to it," Stream said, "there is not a lot of advantage to being incorporated in Nevada."

Review-Journal reporter Kristi Jourdan contributed to this report. Contact reporter Richard Lake at rlake@reviewjournal.com or 702-383-0307.