Clark County projects go on despite threat of lost funding

Yolanda King, chief financial officer of Clark County, at a meeting of the Clark County Board of Commissioners at Clark County Government Center, Tuesday, Sept. 20, 2016. (Ronda Churchill/Las Vegas Review-Journal)

Clark County commissioners this week floated the idea of using anticipated bond proceeds to replace an estimated $11.5 million in federal funding that would be lost under President Donald Trump’s budget proposal.

“As we ween ourselves off the expectation of federal assistance we have to step up like we do with our beltway and everything else in Clark County,” Commissioner Larry Brown said. “It’s going to come down to us. If we don’t do it, it won’t get done.”

Trump’s budget proposal, released last month, prompted commissioners to rethink how they might fund public projects typically reimbursed by Community Development Block Grants.

Clark County has an agreement with U.S. Department of Housing and Urban Development, the supplier of the funds, to budget grants on a five-year basis. That ends in 2019, and Trump’s budget calls for elimination of the CDBG program starting July 1, 2018.

During their regular meeting Tuesday, commissioners said they are committed to funding to nonprofit organizations to complete ongoing CDBG-eligible projects. County manager Yolanda King said the county has enough federal funding to cover the remaining costs, about $8.1 million.

That includes about $2.8 million for Nevada Partners, Inc. to expand its workforce development center and $5.3 million for the Boys & Girls Club of Las Vegas to construct two buildings at its campus near Boulder Highway and Desert Inn.

More money needed

The county will need $11.5 million to complete another seven projects. The funds are set aside to pay for the projects upfront with a line of credit fund, but that money is typically reimbursed by the grants.

If the county does not finish those projects it would have to return to the federal government about $1.2 million of CDBG money it has received.

Brown suggested replenishing the county’s line of credit with some $250 million in funding from bonds the county expects to issue over the next three to five years.

Most of the grant money for county projects through 2019 will be spent on Parks and Recreation Department projects to benefit low-income communities. While construction has not been started on any of those projects, the design for all of them is either complete or underway.

“It just seems like it would be such a shame to stop at this point when money has been expended and they’re so far along the way,” Commissioner Mary Beth Scow said.

Commissioners also voted unanimously Tuesday to call upon the U.S. Congress to restore funding to the CDBG and Home Investment Partnerships programs in the federal budget. The resolution will be sent to members of Nevada’s congressional delegation.

Contact Michael Scott Davidson at sdavidson@reviewjournal.com or 702-477-3861. Follow @davidsonlvrj on Twitter.