Local governmental agencies face budget deadline

Monday, April 13, 1998 | 8:35 a.m.

The state Department of Taxation must review the spending plans to make sure property tax rates comply with state law that sets the limit at $3.64 per $100 of assessed valuation.

Among entities required to submit budgets this week are cities, counties, school boards and general improvement districts.

Local officials have expressed concern about a slowdown in statewide sales tax collections, saying the problem will lead to shortfalls.

Washoe County officials said they foresee at least a $2.5 million shortfall in sales tax revenues for the coming fiscal year's $202 million budget.

"That's not Earth-shattering; it's not the end of the world, but certainly cause for concern," said Jerry McKnight, county finance manager.

Washoe County officials have imposed a job freeze and are looking at other spending cuts to make up for the shortfall.

Other entities also are planning for no-growth spending because of the lower sales tax revenues.

"We're holding the line on everything we can," said Michael Brown, Douglas County management analyst. "We decreased services and supplies, but property tax growth has helped cover increased personnel costs."

Other entities, including the cities of Reno and Carson City, report they're in sounder financial shape to absorb the lower sales tax revenues.

After governing boards give final approval to the budgets in May and June, they must send the spending plans back to the Department of Taxation for a final check.

"It's mostly a technical review," said Taxation Director Michael Pitlock. "It's not a judgment, like spending too much on police and not enough on fire. This is for legal compliance on things like tax rates."

State agencies aren't required to submit spending plans until later this year. The 1999 Legislature will hammer out a budget for the two-year period that begins on July 1, 1999.

The Nevada Economic Forum, a five-person panel of business leaders, will begin meeting in June to formulate revenue projections for the state budget.