County prepares smaller budget that could leave 400 jobless

By Kyle B. Hansen

Tuesday, March 1, 2011 | 5:38 p.m.

Clark County commissioners were told during their meeting Tuesday that the county has done everything possible to reduce costs, and falling revenue this year will likely mean hundreds of layoffs.

Yolanda King, the county’s budget and financial planning director, gave commissioners an update on the county’s actions to save more than $123 million, but said the county needs to cut at least $30 million more.

County managers asked each department head to prepare for additional cuts of 9 percent, which would trim $40 million if implemented across the board, King said.

Those cuts would almost certainly have to come through 400 layoffs or other labor cost reductions, officials said.

Commissioners thanked county management for being transparent in bringing budget information forward instead of surprising everyone with layoffs, but also asked that the county quickly resolve ongoing contract negotiations with labor unions to try to reduce costs and avoid layoffs.

Commission Chairwoman Susan Brager reiterated her belief that cuts in the county disproportionally affect the 900,000 residents in unincorporated parts of the county and said she sent a letter to the governor complaining of inequity in his proposed budget.

King said the county already has cut its budget about 10 percent for the 2010-2011 fiscal year, bringing it to the same level as fiscal year 2007.

The county is saving between $8 million and $10 million by leaving open 108 positions vacated as part of voluntary separation programs, $65 million in keeping 1,500 other positions open and $2.3 million through a voluntary furlough program, King said.

Overtime in the county, not including firefighters, has been reduced 53 percent, King said.

The proposal to reduce all department budgets by 9 percent assumes the same level of funding next year for Metro Police, of which the county funds 60 percent and Las Vegas funds 40 percent, and the Clark County Detention Center, which the county pays for entirely, King said.

Earlier in the meeting, Sheriff Doug Gillespie presented Metro’s tentative budget for the next fiscal year, which calls for a slight increase in the county’s contribution and using the department’s reserve fund to increase the total budget $6 million to $518 million.

The budget is tentative, Gillespie said, and will be adjusted before the final budget is submitted in late April.

Gillespie said his priority is avoiding layoffs, but he realizes the budget will have to be adjusted due to the economy.

The $518 million is the cost of keeping everything at current levels, the sheriff said.

“I don’t see us being funded at that level,” he said.

The tentative budget keeps the contribution from the county and city the same, but shifts $1.6 million from the city to the county due to a change in the formula used to determine the two entities’ contributions.

In addition, the budget uses about $31 million of the department’s $84 million reserve fund, leaving the fund at about 9 percent of the department’s total budget, while the county’s general fund reserve is down to less than 6 percent, King said.

Gillespie said he needed a larger reserve than other government agencies because if there was a catastrophic incident, Metro could have to pay to mobilize large numbers of officers.

Commissioner Chris Giunchigliani said she realizes not every department across the board should have to make 9 percent cuts, but told Gillespie he should be prepared to make cuts just like the rest of the county.