Road funding idea no surprise

The siphoning of about $14 million per year in property taxes that otherwise would have landed in county coffers, earmarked for parks and other projects, wasn’t Gov. Jim Gibbons’ idea. It wasn’t even the idea of Democrats in the Assembly who crafted the compromise legislation that will put an extra $1 billion into road projects.

"It was the county’s idea in the first place," said Assemblyman Kelvin Atkinson, D-North Las Vegas, who chairs the Transportation Committee. "Now I hear them complaining that it’s going to take from parks, it’s going to take from whatever. I find it crazy, because the county suggested it to us and never complained. I’m just baffled, because I concluded they were on board with it."

County commissioners plan to discuss the legislation at their July 3 meeting, County Manager Virginia Valentine said. The commission never voted to support the funding bill; Valentine said she made the decision in consultation with some commissioners, the county’s lobbyists and legislators.

Valentine noted the irony that the two Assembly committees that handled the bill, Transportation and Taxation, are both chaired by Clark County employees. Atkinson works for the coroner’s office, while Taxation Chairwoman Kathy McClain works for social services.

Under legislation crafted and passed in the waning days of the legislative session that ended earlier this month, county property taxes are one of three revenue streams being redirected to pay for highway construction.

Funds are also coming from hotel room tax money that would have gone to the Las Vegas Convention and Visitors Authority and from a "tax" on rental cars that the companies had been allowed to keep.

"We were not thrilled with that," Valentine said of the county’s contribution. "We would have felt better about it had we not been singled out, if there were more contributions from other sources."

Yet it’s not as if the county had no input in the legislation. County representatives were involved in talks on transportation funding and, in the transportation committee hearing in which the bill was introduced on May 31, a lobbyist for the county testified in favor of it.

Lobbyist Michael Alastuey did qualify his support for the bill, noting that the county "had significant plans for parks and recreation improvements" that wouldn’t be possible if the funding was redirected.

Alastuey also made a plea to legislators to remember the county’s sacrifice next time funding sources are sought.

"While the contribution (of the county) is tapered in the early years, eventually it becomes the largest contribution of the three-legged stool," he noted in the hearing. "That should be recognized."

Washoe County lobbyist Lisa Gianoli testified in support of the bill, which redirects Washoe County property taxes. She similarly expressed reluctance, saying, "It will not be without pain that this will occur."

Although the visitors authority supported the legislation, its chairman, Las Vegas Mayor Oscar Goodman, was the only speaker not to embody a take-one-for-the-team spirit, lashing out at lawmakers and Gibbons, who supported the bill. Goodman has called the proposal "robbing Peter to pay Paul."

Also not pleased with the diversion of local taxes is the city of Reno, which is considering a lawsuit challenging the plan.

Valentine said the county went along with the plan because it was better than nothing.

"Some of these things happen on the fly. Decisions have to be made quickly," she said. "We did not oppose it because transportation is so important."

Gibbons in early May jump-started the transportation debate by announcing a proposal that included a larger-scale raid on visitors authority monies in addition to redirecting money from the state General Fund, vehicle sales taxes and the live entertainment tax.

But Atkinson said Gibbons shouldn’t get any credit for the bill that ended up passing. "The governor picked up our proposal. It was my bill."

The transportation committee worked on the bill for months, Atkinson said. As part of discussions, the committee asked county analysts what revenue might be available that was not bonded or otherwise dedicated for future use. The tax in question, 3 cents for every $100 in assessed property valuation that is dedicated to capital improvements, was one of the potential sources cited.

County Commissioner Bruce Woodbury, who chairs the Regional Transportation Commission, said the county has stepped up to the plate to fund highways too many times. In 1990 and 2002, voters approved ballot questions to raise money for roads, including freeways that really should be the state’s job, Woodbury said.

"You don’t see local governments building freeway systems in other parts of the country. Those are the types of projects (the Nevada Department of Transportation) should be doing. But otherwise it wouldn’t have been done."

Woodbury said people involved in the legislative discussions told him no transportation funding proposal was likely to come together without county participation. But in agreeing to be part of the solution, the county didn’t expect so few others at the table.