By Jeff Pope (contact)

Published Fri, Oct 17, 2008 (midnight)

Updated Fri, Oct 17, 2008 (10:43 a.m.)

Henderson officials recently asked city departments to cut their operating budgets by 10 percent. Las Vegas plans to trim its expenses by $150 million during the next five years.

Clark County has already taken similar action in response to the economic downturn that has reduced county sales tax revenue and development fees, said county spokesman Erik Pappa.

The county froze hiring on about 350 open positions in May and asked departments to restrict overtime and travel expenses. Departments requested $553 million for capital improvements, but many of those projects won't be funded.

Layoffs are unlikely because the county maintains a lean payroll even in the best of times, but additional budget cuts are being considered, Pappa said.

The county employs 2.5 people per 1,000 residents, down from 3.6 per 1,000 in 1997, Pappa said.

The voter-approved Taxpayers' Bill of Rights restricts the county's tax rate and growth rate and requires the county to operate on a balanced budget and maintain a reserve of 8.3 percent to 10 percent of all expenses.

The Nevada unemployment rate in August jumped to 6.9 percent compared with 6.1 percent nationally. In just one calendar year, the unemployment rate rose by 2.1 percentage points to 7.1 percent for the county, according to the Center for Business and Economic Research at UNLV.

State sales taxes through August are 5.2 percent lower than the same period last year while the county sales tax revenue dropped 4.9 percent.

Historically, a tough economy usually means a rise in demand for social services, Pappa said. Costs and caseloads are increasing in Family Services, the courts and the University Medical Center.

State mandated budget cuts also affect local social services. UMC depends on Medicaid to cover indigent patients and the state had been funding positions that oversee cases of abuse and neglect, Pappa said.

Jeff Pope can be reached at 990-2688 or jeff.pope@hbcpub.com.