Leaders of cities tell state: Hands off cash

Erin Neff

Thursday, Jan. 16, 2003 | 11:15 a.m.

Local governments united Wednesday with a clear message for state lawmakers -- don't try to take our money to fix your problems.

"I think the reason we're in halfway decent shape is that we've been efficient and implemented cost-savings measures," Las Vegas Mayor Oscar Goodman said during a joint meeting with the city councils of Henderson, North Las Vegas and Reno. "It would be a terrible shame if we were punished for being prudent."

During an afternoon meeting of the Southern Nevada city councils and the Clark County Commission, the message got more specific.

Goodman rattled off a list of ways his city has tried to become more efficient, including a hiring freeze that has saved $10 million, reductions in the numbers of outside contractors hired by the city and staff reductions at some city centers at the same time the city was able to offer more programs.

Clark County Commission Chairwoman Mary Kincaid-Chauncey echoed the message: "We have tried to spend our money responsibly."

It was believed to be the first joint meeting between the boards of the government agencies, and with the state facing a deficit of more than $700 million, it was important, participants said.

Lobbyists and members of the Governor's Task Force on Tax Policy's technical working group did not disagree with the local officials.

Marvin Leavitt, a lobbyist representing Urban Consortium formed by the state's five largest cities, warned the elected officials about "some in Carson City" who think local governments are flush with cash.

Leavitt never mentioned Senate Majority Leader Bill Raggio, R-Reno, by name. But it has been Raggio who has consistently argued, as recently as last month, that state government may want to look to local governments to help solve the state's budget shortfall.

The misconception, Leavitt said, is that the local governments get all of the property tax monies while the state gets just 15 cents of the total amount generated.

"The more these misconceptions are told, they seem to get a life of their own," Leavitt said.

In reality, he said, property taxes constitute roughly 20 percent of local governments' revenue. And, in addition to the 15 cents, the state also gets the portion of property tax earmarked for schools.

Leavitt also argued that since local governments provide public safety and the state provides education, it makes little sense to try to justify one over the other. Some lawmakers have suggested local governments pony up to help the state pay for education.

Reno Councilman David Aizzi said he was concerned the state would look at cities and counties in the same light.

"I don't want to be double-taxed," Aizzi said. "Everybody who lives in the city also lives in the county."

Mary Henderson, a lobbyist for the Nevada League of Cities, said Nevada's cities need to stick together with a common message.

"I hope that we're all going to work together," Henderson said.

While the morning session was something of a local government pep rally, complete with presentations about the bills each city was seeking, the afternoon session was a history lesson.

Leavitt explained the tax shifts of 1979 and 1981. In 1979, the Legislature capped the property tax rate at $3.64 for each $100 of valuation. It had been $5.

Two years later the Legislature, still responding to a taxpayer revolt, shifted the majority of government's revenue from property taxes to sales taxes.

"The state gave up revenue in this but the local governments did not benefit from this," Leavitt said.