State to open talks with Clark County over demand for return of looted taxes

By Cy Ryan

Tuesday, Sept. 13, 2011 | 4:18 p.m.

State officials have decided to enter talks with Clark County over its demand for the return of $102.5 million in county taxes taken by the state in 2009.

Gov. Brian Sandoval said he has asked Attorney General Catherine Cortez Masto and budget Director Jeff Mohlenkamp to open discussions with the county, saying he believes it's "prudent to consider this claim."

At a meeting of the state Board of Examiners today, Sandoval said the legal issues surrounding the claim warrants a discussion.

In July, Clark County sent a demand to the board asking that the money -- taken by the 2009 Legislature to balance the state budget -- be returned.

Asked if Clark County had a solid case, Cortez Masto said, "I can't answer that because it's only my attorneys who have taken a look at it. But I know we cannot disregard their request."

The discussions with Clark and Washoe counties are aimed at avoiding a lawsuit. Any settlement would have to be approved by the board of examiners whose membership is the governor, attorney general and Secretary of State Ross Miller.

The Nevada Supreme Court in May ruled the Legislature did not have the right to siphon $64 million from the Clark County Clean Water Coalition to help solve the state's money problems. Such takings must be equal for all Nevada counties, according to the justices. And Clark and Washoe counties are basing their demands on the ruling. (Washoe County has requested return of $21.4 million that was similarly taken.)

Asked if there was a chance a compromise might be made on the amounts of the demands, Masto said, "We won't know until we sit down and talk with them."

Clark County originally requested state Treasurer Kate Marshal to refund the month. But the treasurer's office, acting on the advice of the attorney general, refused saying it did not have authority to give back the money.

Clark County then faxed its request to the board of examiners on July 5. Sandoval then asked the attorney general'‚s office for legal advice