Lawmakers move to take even more from Washoe and Clark

Proving the axiom that no good deed goes unpunished, the Assembly Ways and Means Committee Monday voted to take an additional 5 cents in property tax revenue from Clark and Washoe counties.The governors proposed budget in part balanced revenue needs by taking away 4 cents of the local property tax in Clark and Washoe. The redirection generated $69.4 million for the state budget.Clark officials have strongly opposed that idea saying 4 cents off their 47 cent operating rate is a near 10 percent cut. Lobbyist Sabra Smith Newby told lawmakers last week said her commission would prefer they take the 5 cent property tax rate set aside for transportation infrastructure improvements instead of the 4 cents.She said that would not only get the state more money than the 4 cents but would be easier for the county to handle. First, she said it spreads the pain across all southern local governments, not just the county. Second, she said with the southern Nevada growth rate dramatically slowed from several years ago, it would be much more palatable to delay street and roadway projects than to further cut operating funds which provide services.Lawmakers, however, decided Monday that, if Clark County was willing to give up the transportation money, they would take both. The result an additional $86.7 million from Nevadas two largest counties to balance the state budget.We have no choice, said Assemblywoman Sheila Leslie, D-Reno. Were desperate.The committee, however, offered Washoe County a way to mitigate about half the loss to their budget, saying they would give the county commission the authority to add 1 percent to the Governmental Services Tax. Leslie said the total raised would more than offset the 4 cent property tax loss. Clark doesnt have that option since that county is already at the maximum permissible GST.At that level, there are going to be layoffs, said Newby after the hearing.In the same proposed piece of legislation, lawmakers offered a plan to restore at least part of the Indigent Accident Fund a $50 million pot of money lawmakers have already voted to take from local governments this session.The fund pays medical expenses of indigents hurt in major accidents. Without it, county officials say they could be bankrupted by huge medical bills resulting from accidents with multiple injuries.The committee agreed Monday to use the federal Medicaid stimulus going to local governments to help backfill that fund. The proposal would generate about $31 million over the biennium for the accident fund.Newby, however, said her commission opposes that because the stimulus money wouldnt be available for the needs it was originally intended to cover.Its still our position that we cant support the diversion of tax revenue from local governments, she told Ways and Means members.The committee voted to amend and pass AB543, which contains those changes.Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.