Money fight
Five years of economic suffering have forced Nevada's governments to make a lot of tough decisions. Elected officials at every level would do just about anything to avoid having to make even more of them.
More than anything, this is why Clark County sued the state of Nevada on Tuesday for more than $100 million.
Recall that during the 2009 Legislature and a 2010 special session, lawmakers balanced the general fund by diverting large sums of local government revenue into Carson City's treasury. Politically, it was an easy call because, by that point, state revenues had declined faster than local tax dollars, and local governments were lavishing their workers with salaries and benefits (plus pay raises) far more generous than those enjoyed by state workers, the recession notwithstanding.
So, to avoid making even tougher budget decisions, lawmakers made sure Clark County officials would have to make some tough calls of their own, too.
Gov. Brian Sandoval built more revenue shifting into his 2011 budget. However, the Nevada Supreme Court ruled just before adjournment that one of those money grabs - the 2010 seizure of $62 million in Clark County Clean Water Coalition funds - was illegal. Those taxes had been paid by businesses to fund a wastewater treatment project that wasn't completed, and because that revenue hadn't been used for the reason it was collected, the court ruled it had to be returned. It was the proper decision.
Gov. Sandoval then asked Attorney General Catherine Cortez Masto to seek clarification from the court on whether the ruling applied only to Clean Water Coalition funds. Ms. Masto declined, leaving the issue undecided. Gov. Sandoval decided to extend expiring tax increases rather than move forward with a budget that could wind up in the courts.
Clark County pressed the matter, however, and demanded its money back. Months of negotiations followed, and when they didn't result in an agreement, the county sued. It wants to avoid the additional difficult choices that lie ahead, thanks to a $42 million budget hole. If the lawsuit succeeds, those choices will be shifted to the state.
Yes, the Clean Water Coalition funds should be returned - but to the businesses that paid them, not Clark County. Meanwhile, the county shouldn't count on an infusion of cash to prop up its operations. Clark County doesn't need more money - it needs to figure out how to spend less.
Putting off tough decisions only makes them tougher.
