LVCVA gives up fight for tax money with schools

Benjamin Grove

Thursday, April 22, 1999 | 11:16 a.m.

The fiery controversy between the Las Vegas Convention and Visitors Authority and the Clark County School District has fizzled.

The visitors authority has officially abandoned its attempt to get back roughly $12 million a year in room-tax money that will soon belong to the school district, LVCVA officials now say.

"The convention authority is out of the deal," LVCVA lobbyist Tom Skancke said Wednesday in Carson City. "We threw in the white flag."

The LVCVA had sought to recapture tax money that used to fuel part of its budget and soon will be siphoned to the school district.

Now the LVCVA has retreated, but Las Vegas Mayor and LVCVA Chairwoman Jan Laverty Jones still thinks the money should be directed away from the bulging school construction account. She wants the money used for teacher salaries and books.

"We just wanted to make our position clear that we should put the money to where it will do the most good," Jones said today.

At stake has been about $12 million a year -- 5/8 of 1 percent of hotel room-tax money that now makes up 10 percent of the LVCVA's budget. The convention authority uses the money to lure tourists to special events in the city.

But the 1997 Legislature mandated that the money will be deposited in the district's school construction fund beginning in July 1999. The eighth-largest and fastest-growing district in the nation plans to build 88 new schools and renovate old buildings during the next 10 years.

LVCVA lobbyists had tried aggressively to persuade lawmakers to give the money back to the visitors authority, lawmakers said.

"They (LVCVA lobbyists) have been working the building pretty hard," Assemblyman Wendell Williams, D-Las Vegas, has said.

LVCVA lobbyists argued that the district will have plenty of money for construction: $3.5 billion in room taxes, property taxes and real estate taxes during the next 10 years. That estimate could go higher if a robust economy continues.

LVCVA President Manny Cortez and the visitors authority spokesman Rob Powers have said that the money should be used to promote tourism if the district doesn't need it to build new schools.

Meanwhile, school officials have vowed a fight to keep the money coming their way.

"As soon as the LVCVA withdraws from the field of battle, we will happily pull our troops and tanks back," Superintendent Brian Cram said Tuesday morning.

School district lobbyist Larry Spitler added,"The Assembly seems to be very firm in its commitment to make sure that the promises they made in 1997 will come about."

Assemblywoman Chris Giunchigliani, D-Las Vegas, said she was grateful the matter appears put to rest.

But Giunchigliani said the money must be used for construction because voters had approved a property tax freeze after lawmakers promised that the LVCVA money would help pay for construction.

Money for teachers, textbooks and classroom supplies will come from the Legislature through a per pupil funding allocation -- not money specifically earmarked for construction, she said.

"That was the commitment made to the public," Giunchigliani said.

Cram agreed but sounded a reconciliatory note today.

"Almost everyone involved here is really interested in the kids," Cram said. "We're trying to work out any differences we have."

Las Vegas Sun reporter Cy Ryan contributed to this report.