Political leaders address economy

Adrienne Packer

Wednesday, Sept. 26, 2001 | 11:05 a.m.

Thousands of jobs were lost, government budgets were tightened and Las Vegas businesses have struggled to survive in the wake of the Sept. 11 terrorist attacks.

How long the economic crisis, which has cast a cloud over glitzy Las Vegas, will continue is one of the many questions government officials and business representatives hope to answer Friday when they examine the fallout of the recent attacks on the United States.

Clark County Commission chairman Dario Herrera and Rep. Shelley Berkley, D-Las Vegas, called the special meeting to assess the health of the local economy and perhaps offer financial help to residents who have suffered most.

It's likely there will be no easy solutions.

"I'm not predisposed to having any specific solutions," Herrera said. "This is an attempt to gain a better understanding of what the economic impact is, what it will be and if there is any way to alleviate the impact from a displaced worker standpoint."

One idea is for local governments to provide a break for affected residents on their utility and medical bills.

Herrera and Berkley, along with Gov. Kenny Guinn and Las Vegas Mayor Oscar Goodman, have invited local, state and federal government officials, union representatives and business owners most affected by declining visitor volume to participate in Friday's "economic roundtable."

In the days leading up to Friday's meeting, Guy Hobbs, a financial consultant for local governments, will work to arm elected officials with possible solutions.

In his 24 years in Clark County, Hobbs said he can't recall such a unique economic crisis.

He's digging up information on other incidents that affected the economy, such as the oil crisis of the 1970s and Operation Desert Storm.

"Part of the problem with this one is I'm not sure anything can be compared to it," Hobbs said. "Desert Storm was a bit different; the economic response was gradual and subdued. This one is pronounced and quick."

Desert Storm mostly affected families of military personnel; there were fewer layoffs and fewer businesses were affected by the war, Hobbs said.

Hobbs said financial wizards can drum up ideas, but those ideas must be reviewed by legal experts. There is the possibility of local governments finding grants or offering no-interest loans to residents who have lost their jobs.

But government agencies also must be careful with their own finances. Clark County, already enacting a hiring freeze and scaling back on spending because of a slowing economy, has several contractual obligations, such as bond debts for large-scale projects.

"I think there are certain things they can look into," Hobbs said of government officials' ability to help community members. "Whether it's something that could be feasibly implemented without creating other areas of concern, we don't know yet."

A decline in visitor volume along the Las Vegas Strip not only hurts casino earnings and employees of Strip resorts. The trend also adversely affects schools, the Las Vegas Visitors and Convention Authority and the Regional Transportation Commission -- all of which get a cut of room tax revenues.

"We're trying to get a handle on this. We're trying to find a parallel, but it's a unique set of circumstances," Hobbs said. "I think (Herrera) is trying to get his arms around the kinds of things that can be done if an improvement isn't seen pretty quickly."

Friday's roundtable is scheduled at 1 p.m. at the Las Vegas Valley Water District, 1001 South Valley View Blvd.

In a separate effort, North Las Vegas is playing host to a campaign dubbed "Liberty Las Vegas -- Support Local Business."

North Las Vegas representatives, as well as officials from the valley's other cities, are encouraging community members to buy locally. The campaign will begin at 2:45 p.m. today at the Las Vegas Convention Center.