Growth, finances concern county leaders

Wednesday, Feb. 25, 2004 | 11:16 a.m.

The Clark County Commission discussed its priorities for the coming year Tuesday, and two related issues colored nearly the entire conversation: Growth and financial constraints.

Revenue is growing for the county, Finance Director George Stevens told the commissioners at a special meeting, but not quickly enough to cover the increased demand for services sparked by the continued population growth.

County Manager Thom Reilly said that some services funded by the county, including the public defender's office, the juvenile justice system, child welfare and family support services, are dangerously close to being unconstitutionally deficient or of losing much-needed federal funding because the staffing levels are too low.

The meeting was held to allow the commission to identify priorities for the coming year and to formally receive the new funding apportionment for Metro Police. Because of the formula devised by the Legislature for funding the department, which covers both the city of Las Vegas and unincorporated Clark County, the county will pay for 59.6 percent of the total.

The county's increased population, now at about 1.4 million people and growing at an annual rate of 5 percent, is largely the reason for the increased share of the funding for the department.

Stevens told the commission that because of the change in the funding formula, the county's annual share of the budget will go up by 14.5 percent, although the overall increase requested by Sheriff Bill Young is 11 percent. Young has asked for $390.5 million, up from $352 million last year.

If the full amount is approved, the county would have to pony up about $233 million. A Fiscal Affairs Committee made up of two county commissioners, two city council members and Young will make the final recommendations to the two government boards.

It could be a tough call for the county, which added only four full-time employees in the last year. Commissioner Yvonne Atkinson Gates noted that Young wants 145 new officers and 18 new civilian staff members.

"The lion's share is going to be funded by the county," Gates said.

Stevens noted that the county's revenue stream is growing much more slowly than Metro's budget requests. If the projections pan out, Stevens said the county funding could grow by 8 percent.

Stevens and Reilly said that increased labor costs in county government are shackling the ability of the local government to hire more people, even for critically needed positions.

"As the population grows, the question is, where is the money going?" Stevens asked.

The answer, Stevens said, is increased costs for labor.

Since 1995, inflation in the Western states has averaged about 2.8 percent. However, costs for full-time employees has gone up an average of 5.1 percent.

The problem is exacerbated by population growth, which has gone up an average of 7.4 percent since 1995. In that year, the county provided 3.4 full-time employees per 1,000 people. Now, the number is down to 2.8 employees per 1,000.

"The net effect of that is we have lost ground considerably since 1995," Stevens said. "Essentially what is happening is that a very large portion of the new revenues we are generating have gone to our existing workforce."

Reilly warned the commissioners that they would have to create 200 new positions next year just to stay at 2.8 employees per 1,000 people. The situation has become so dire in some departments, including the Public Defenders Office and services for children and families, that the county risks losing important federal funding, Reilly said. The county could also could face lawsuits challenging whether it is living up to its constitutional responsibility.

"We're approaching a constitutional crisis," Reilly said.

Other county-funded agencies also are looking for more employees. Clark County District Court Chief Judge Michael Douglas told the commission that the case load at the courthouse is skyrocketing, often with civil cases of increasing complexity.

"We need your assistance," Douglas told the commission.

Las Vegas Justice Court Chief Judge Tony Abbatangelo made a similar request.

"There is only so much paperwork one person can process," he said. "We feel we are a critical need."

Gates asked Stevens for a solution.

"How are we going to do this?" she asked. "We have to balance the budget."

Commissioner Myrna Williams agreed. She noted that it is critically important for the justice-related elements in the county budget to received adequate funding.

"We're going to be in very deep trouble if we don't meet these federal standards."

The answer, staff members said, is that tough funding decisions will have to be made within the county's $850 million general fund. The county commissioners can help shape those decisions by first setting priorities for the coming year, an exercise they carried out after the initial financial discussions.

Ultimately, the county commissioners selected 14 top if broadly defined priority issues for county staff and the board to address in the next fiscal year. The priorities are not in any order, but among them for the first time is "growth."

The county this month launched a "growth management initiative" to look at the impact of growth, good and bad, and come up with policies for dealing with the population increases.

Other priorities included health care, air quality, McCarran International Airport, child welfare, public safety, water conservation and fiscal sustainability.

The priority list and top issues within those broad categories will go back to the board for ratification next month.

"These are all very important priorities," Commission Chairman Chip Maxfield said. "To quantify one over the other is not fair."

Tuesday's exercise in naming priorities was the second time the commission has worked through the process. Maxfield said it is important to give staff direction on what the commission has selected as the critical issues, and it has to be updated to account for successes and new problems facing the county.

"We have to make sure we're dealing with the issues of the day," he said.

Reilly said the strategic planning process including the priority list works for him and the other members of the staff.

"It's probably the best management tool we've ever had," he said. "We take it very seriously."