County limits filling job vacancies

Adrienne Packer

Thursday, March 8, 2001 | 11:49 a.m.

A steep decline in tax revenues combined with uncertainty over how legislative decisions will affect Clark County coffers prompted administrators to place restrictions on filling vacant positions.

In a memo released Wednesday to the public and department heads, County Manager Dale Askew acknowledged the inability to immediately fill positions might affect customer service but added that being conservative will eliminate "drastic measures."

"We're doing this until we can see what happens legislatively," George Stevens, the county's finance director said Wednesday. "There are potential impacts on the county; we like to take a conservative approach."

Stevens said the county's growth in sales tax revenues has dropped from 12 percent at the beginning of the fiscal year to 2.5 percent in the last month. Stevens said if the average growth rate drops below 5 percent, the county could face serious problems. The average over the first six months is 5.7 percent.

"If we continue with the trend we've seen in the last few months, we'll be lucky to hit our budget number (of 5 percent)," Stevens said. "It's not a real serious problem in the short run, but it could be if it's dragged out for awhile."

With rising utility and fuel costs, tourists and residents are spending their money far less freely. The county shares the same burdens: it is already $5 million over budget for utility bills.

"With a slowing of the national economy and the impact of higher energy and gasoline prices on consumer spending, it is not likely that significant growth in sales tax revenue will occur in the near term," Askew wrote in his memo.

A lagging economy isn't the only obstacle that could hurt the county's finances and services. Several bill drafts before the state Legislature might prove to be pricey.

Aside from with unfunded mandates, perhaps one of the more controversial proposals is the city of Henderson's pursuit of a larger percentage of sales tax revenues.

Henderson officials are seeking at least $4 million more a year -- a figure that would increase annually and likely come from Clark County and the city of Las Vegas.

Since the Legislature revamped the state's consolidated tax formula in 1997 -- action intended to help the Las Vegas Valley's fastest growing entities such as Henderson -- the Las Vegas suburb has lost about $24 million in revenues.

The loss has hindered Henderson services and prompted elected officials to consider a public safety tax initiative.

"We simply can't survive if we don't have this fixed," Henderson spokeswoman Vicki Taylor said Wednesday. "We're not looking to make a cash cow here."

Henderson has been fighting to change the formula, which became a detriment to the city because it was based on outdated population figures. The city tried to fix the inequities through a technical committee, but because that panel was made up mostly of county and Las Vegas officials, it had no success.

Henderson's chances are better this time because Richard Perkins, D-Henderson, is speaker of the assembly -- a role that carries a significant amount of influence.

The battle over tax shares might become more of a political battle than a financial concern for the county. Some elected officials have suggested the county has been pressured to agree to the $2 million because of Perkins' influence over whether bills are approved or rejected.

Perkins said he meets regularly with county and Las Vegas administrators and discussions have been positive.

"Could I bring an enormous of influence to bare?" Perkins asked. "Yes I could. But I won't do that."

Sacrificing $2 million of the $300 million the county receives from sales tax revenues might seem miniscule. But the county is the only entity that provides both urban and rural services to the fast-growing valley, and it has embarked on several expensive projects.

Stevens said district court is asking for five more judges, which means more offices and staff, Metro Police are seeking more officers, and the county is committed to building a new fire station every year for the next decade. Clark County also is building a new jail and the Regional Justice Center.