Perkins admits tackling growth is risky business

Kirsten Searer

Wednesday, Dec. 8, 2004 | 9:45 a.m.

Most people agree that growth needs to be addressed in Nevada, but politicians know it's a sticky issue.

So some were surprised when Assembly Speaker Richard Perkins, D-Henderson, announced in October he would create and act as chairman of a new committee focused on growth.

Perkins, who is eyeing a gubernatorial run in 2006, said he realizes taking on the issue could earn him enemies or accolades. And he admits he got concerned calls from developers, who are known for giving large campaign contributions.

Yet he said growth was the top concern among constituents he met while campaigning this fall for re-election in the Assembly.

"Absolutely it's a high risk, but in my mind it's the right thing to do," he said.

Perkins, who recently dissolved the Assembly's Taxation Committee, also plans to shuttle the proposed property tax caps through his growth committee, ensuring that he'll be in control of one of the biggest issues legislators will take up this session.

He even will take on the tinkering many have called for on the tax increases passed during the 2003 legislative session, including potential changes to the entertainment tax and the tax on bank branches.

Assembly Minority Leader Lynn Hettrick, R-Gardnerville, said Perkins is taking a lot on his plate in the coming session.

"I think he has aspiration to run for other office and this is a way to put himself in the limelight and try to take on some of the big issues," Hettrick said. "If he gets them handled well, maybe it works. If the solutions that come out of the committee aren't well received, than maybe it doesn't."

There are few easy solutions in dealing with thousands of people who move to Las Vegas every month. Take the gaming industry, for example, which is one of Perkins' biggest financial supporters.

Properties on the Strip are mindful that growth doesn't pay for itself and that the gaming industry ends up making up much of the difference through taxes, Mandalay Bay Vice President Mike Sloan said.

Yet companies that serve local residents want more people to move here because it increases their customer base, Sloan said.

"Our gaming industry is increasingly composed of two types of businesses -- those who serve locals and those who serve tourism," Sloan said. "And obviously those who serve the locals market have an interest in increasing growth."

Lesley Pittman, vice president of corporate and government relations for Station Casinos, said her business relies on new residents but also saw polling during the election season showing growth is top on Nevadans' minds.

"Certainly the dialogue and discussion needs to be had," she said. "I don't think responsible individuals want to stop growth, but I think there might be some better ideas."

UNLV history professor Hal Rothman, who is serving on a county task force examining growth, said the issue is the most important in Southern Nevada and parts of the rest of the state.

Yet developers have increased their power in the state, making it difficult for politicians to impose any sort of restrictions, he said.

"What has happened in the last 10 years in Nevada is the old sources of political power have changed, and what has been added to them is developers," Rothman said.

Growth, while creating frustrations with traffic, and air and water pollution, also has fueled the Las Vegas economy, Rothman said.

"Certainly in Southern Nevada we're addicted to growth," he said. "All our communities here are addicted to growth."

Perkins said he's unsure what specific issues he will address in the growth committee. Mostly, he said, he hopes to foster a dialogue between competing interests on everything from water allocation between rural and urban counties to freeway infrastructure.

He also hopes to address issues such as class sizes, which he said end up too large because they're based on enrollment at the beginning of the year, not later on, when many new children have moved to a school.

The tax issues alone will be a lot to digest, largely because the property tax issue is so hot and because some might push for tax cuts because of the state surplus, said economic analyst Guy Hobbs, who was active in last year's tax debate.

Hobbs said it's too early to cut the tax increases because the surplus was probably a blip and the taxes increases will be needed in the long run.

One of Perkins' potential challengers in the 2006 Democratic gubernatorial primary is Sen. Dina Titus, D-Las Vegas, who is outspoken on growth issues.

"Growth is a big issue and I can see why Richard wants to focus on it both personally and because its' a good policy move," Titus said. "I'm a little cynical because I've seen growth committees come and go both at the local level and at a state level."

Titus said Perkins' campaign for governor could be affected.

"Maybe he'll come out of it showing good leadership and that's great, or he might come out of it bruised," she said.