Clark County approves $1.2 billion general fund budget

Clark County commissioners unanimously approved a $1.2 billion general fund budget on Monday for the upcoming fiscal year.

The budget comes against a backdrop of increased costs, most notably for University Medical Center, the Metropolitan Police Department and the Clark County Detention Center. The subsidy for UMC, for example, is increasing from $41 million to $71 million. The fiscal year starts in July and the entire budget, including all funds, is $6.3 billion.

Commissioners remain concerned about the financial stability of the county’s public hospital, which will face increasing pressures amid changes in the years ahead due to the Affordable Care Act. Commission Chairman Steve Sisolak suggested the possibility of seeking an advisory vote on a ballot measure in November that gauges public sentiment about raising property taxes to generate revenue for UMC.

Opinions about that are mixed, and a final decision on that idea wasn’t made Monday. Commissioner Chris Giunchigliani said she was concerned there may not be enough time to educate the public about the issue.

Commissioner Lawrence Weekly, chairman when commissioners act as the UMC Board of Trustees, said after the meeting it’s possible the question could end up on the ballot in November. It’s good to get input from the public that faces increased taxes and fees from other sources, he said.

“With an advisory vote, it’s really no harm, no foul,” he said.

UMC remains squeezed. In addition to the subsidy, the county also has given the hospital a $25 million loan to address cash flow issues.

As for the $71 million subsidy, Commissioner Larry Brown expressed concerns about the increase sending the wrong signal to the hospital about finances.

“I just don’t want the message to be: ‘You’re OK, you’re going to keep getting money from the county no matter what happens,’” Brown said.

At the same time, commissioners expressed a desire to give UMC’s new board — which the county formed to provide direct oversight for the hospital — time to go through finances and come up with ideas.

The approved general fund budget also increases the county’s contribution to the Metropolitan Police Department by $17.6 million and increases the contribution to the detention center by $14.5 million.

The new budget includes $68.6 million in cuts to general fund expenditures compared to the budget that ends June 30. Reductions were made across different areas including judicial, recreation and general expenses. Revenues are up by just $8.5 million, or 0.7 percent, compared to the current fiscal year.

Financial concerns are anticipated in the following fiscal year, which starts in July 2015. The Metropolitan Police Department will by then have a $20 million deficit, and the detention center will have a $23 million deficit.

With that $43 million need to plan for the next year, Clark County Manager Don Burnette said he has concerns about the county’s ability to maintain the level of subsidy for UMC.

The recession hit Southern Nevada hard, and the region is still climbing out of the economic doldrums. Clark County’s property tax collections plummeted from $383.1 million in fiscal year 2009 to $257.4 million in fiscal year 2013. The downturn in property tax revenues will take years to restore because of an annual 3 percent cap on property assessments that prevents an upswing.

The county, along with other local government agencies, is considering going to the Legislature in 2015 to change the cap’s formula, though the specifics are still under review.

Expenses left the county with $2.9 million in the general fund for additional needs. The county is using that money to hire 40 new employees in departments that include Family Services, Information Technology and Juvenile Justice. The county is also hiring another 54 employees with other funding sources. The county slashed its workforce by 20 percent during the recession.

Contact Ben Botkin at bbotkin@reviewjournal.com or 702-405-9781. Find him on Twitter @BenBotkin1.