LVCVA says state owes it $12 million

Wednesday, Nov. 11, 1998 | 11:40 a.m.

The Las Vegas Convention and Visitors Authority hopes to get $12 million back it lost in the Legislature with the help of a new ally -- Lt. Gov.-elect Lorraine Hunt.

Hunt, currently chairwoman of the LVCVA as a representative from Clark County, said she would lead the charge to recover funds lawmakers reappropriated to education in the last session.

A law that used to allocate the county's 8 percent room tax directed that five-eighths of 1 percent go specifically to marketing special events. That amounted to about $12 million -- roughly 10 percent of the LVCVA's annual budget.

In the most recent legislative session, the room tax was raised to 9 percent and the percentage for special events marketing was shifted to school construction. The first budget the LVCVA would have to face with a smaller appropriation would be the 1999-2000 fiscal year beginning July 1.

But Hunt said she would attempt to have the issue revisited in light of several recent events.

While commissioners acknowledged that appropriating funds for schools was important at the time, priorities may be shifting after last week's election.

Manuel Cortez, president of the LVCVA, said the financial crunch may have eased in the Clark County School District with the passage of a bond issue that will generate funds for schools.

Meanwhile, Proposition 5 was approved in California, potentially opening the door for more casinos on the state's Indian reservations. LVCVA board members believe that could present a serious threat to Nevada's economy as more Californians stay home to play in local casinos.

"A couple years ago, there was a crisis with the schools," said Hunt, who defeated Rose McKinney-James in the lieutenant governor's race last week. "When it was proposed that we'd lose some of the funding in that bill, we were assuming it would be a portion of it, maybe $5 million to $10 million. But we lost the entire amount.

"Now, with Proposition 5 passing and the proliferation of gaming continuing nationwide, marketing Nevada is more important than ever," Hunt said.

The lieutenant governor oversees travel and tourism as well as economic development for the state. LVCVA officials said they are encouraged that someone closely familiar with tourism issues will land in that office in January.

The $12 million the agency had received from the state went specifically to marketing special events like the National Finals Rodeo, the Western Athletic Conference championship football game and the Las Vegas Bowl, all next month.

Hunt said studies show tourists who attend special events in Las Vegas tend to spend more per capita and stay longer than the average visitor.