LOOKING IN ON: CARSON CITY

Monday, July 23, 2007 | 7:07 a.m.

CARSON CITY - White Pine County, near bankruptcy two years ago, is back in the black under the state's financial management.

But the state wants to determine whether the county commission in Ely can adequately manage its own affairs before it bows out.

Michael Griffin, supervisor of local government finances for the state Tax Department, said the county ended up with a $2.3 million balance as of June 30. Two years ago it was $147,000 in debt.

In June 2005, after the Nevada Tax Commission found a "severe financial emergency" in the eastern Nevada county, the tax department took over as manager, canceling all credit cards and requiring expenditures of more than $250 to be approved by the state agency. It was one of the few times the state has stepped in to control a local government's finances.

The state also ordered the county to increase the hotel-motel room tax by 1 percentage point, the sales tax by one-quarter of 1 point and the government services tax on motor vehicles by 1 point.

The room tax increase is being eliminated, but before the state cancels the hikes in the other taxes, the county commission, at its Wednesday meeting, must either impose other taxes or cut expenses by $700,000 to keep county finances on an even keel.

Continuation of the sales tax increase , which generates about $420,000 annually, would require voter approval. There's also been talk of imposing a franchise fee on public utility services such as electricity, telephone and cable TV.

Laurie Carlson, chairwoman of the White Pine County Commission, said she is confident the commission will take action to avoid ending up in the same position as two years ago.

She also said there are proposals for two coal-fired power plants to supply electricity to Southern Nevada and a wind-generated energy plant could put more money in the county treasury.

Terry Rubald, chief of the Tax Department's division of assessment standards, said any exit plan would be extended over six months because of the "ups and downs of county finances." The state, Rubald said, "will let them down easy and not pull the rug from under them."

The Legislature's failure to pass a bill may mean that the 25,000 Nevadans with concealed weapons permits may have to undergo a federal background check every time they buy a gun.

For years the federal Alcohol, Tobacco and Firearms bureau has exempted Nevada permit holders from paying $25 and undergoing a check with each gun purchase .

But now the government is threatening to scrap that exemption.

Now, those without a concealed weapons permit must pay $25 for a federal background investigation whenever they purchase a firearm. But those with permits have been exempted because they undergo background checks when they get their state license.

Frank Adams, executive director of the Nevada Sheriffs' and Chiefs' Association, said the federal agency in the past was dissatisfied with the checks made by local sheriffs. So the local law enforcement agencies beefed up the process .

But the federal agency wanted state law to conform to the local sheriffs' practices. Assembly Bill 21, backed by the sheriffs and chiefs , was aimed at satisfying the federal agency's wishes. But it died in the Assembly Judiciary Committee.

Adams said his association plans to ask the federal government for an extension based on the fact that local sheriffs still conduct the checks, even though state law has not yet been changed.