County offers state one pot or another; state wants both

By David McGrath Schwartz (contact), Cy Ryan (contact)

Friday, May 15, 2009 | 2 a.m.

This is not going to be a good legislative session for local governments.

Trying to bridge the state’s massive budget gap, lawmakers have looked at counties’ shares of the property tax for additional revenue.

Out of self-defense Clark County this week offered an alternative. Clark County’s representatives proposed that instead of the state taking property tax money that goes to pay for ongoing costs, it could take money that goes into a fund for transportation projects.

Legislators thought it over — and now believe they will take both streams of money, according to legislative sources.

No deal is finalized, but taking the ongoing money would cost Clark County $30.4 million per year; taking the transportation fund would cost $38 million per year.

That might give the county second thoughts about offering legislators any alternatives in the future.

•••

Less than 1 percent of the Public Employees Retirement System’s $18 billion in investments are in companies with ties to Iran, PERS officials told the Senate Finance Committee.

Testifying at a hearing on a bill to require PERS to report such investments, PERS officials said the $167 million in Iran-related investments is in the petroleum or natural gas industry. The largest single investment is Royal Dutch Shell, in which the retirement system has invested $70.9 million.

Testifying in favor of the bill, Assembly Speaker Barbara Buckley, D-Las Vegas, said Iran is developing nuclear weapons, has a “dismal record” on human rights, exports terrorism and has an anti-American posture. Other states prohibit the investment of retirement funds in these companies, but that is prohibited by the Nevada Constitution.

Assembly Bill 493 would merely require the system to report its Iranian-related investments once a year to the Legislature and governor.

Dana Bilyeu, executive officer of the PERS system, said the retirement board has taken a neutral stance on the bill. She noted, however, that the state constitution requires the system be operated for the financial benefit of its members and not for social purposes.

The Finance Committee did not vote on the bill, but its chairwoman, Sen. Bernice Mathews, D-Reno, said she saw no problem in getting approval later. The bill had been approved by the Assembly.

•••

The Legislature will allocate $3.2 million over the next two years to treat children with autism.

The budget committees of the Legislature agreed the increase was needed to continue treating the 109 children enrolled in the program, which received $2 million from the 2007 Legislature.

The Senate Finance and Assembly Ways and Means committees reduced the recommended funding for independent living services included in Gov. Jim Gibbons’ budget.

The governor had recommended $1.1 million a year to provide 712 people with the services, an increase from the current enrollment of 374. But the committees agreed to slice the proposed budget by $605,284 each year, allowing an increase to 559 over the next two fiscal years.

The Senate Finance committee approved the budgets Thursday. They were already passed by the Assembly committee.