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North Las Vegas in a bind
What’s a broke municipality to do?
A pair of District Court judges, in separate decisions last week, issued temporary restraining orders against the city of North Las Vegas’ attempts to balance its bleeding budget. On Thursday, District Judge Susan Scann blocked pay and benefit cuts for police supervisors that were supposed to take effect June 19. On Friday, District Judge Nancy Alff stopped the layoffs of 17 police officers.
Pending hearings this week on preliminary injunctions sought by police unions, City Council members appear to have two options: They can start begging at street corners for spare change, or they can just hand the keys to City Hall over to the city’s bargaining units.
Of all of Clark County’s city governments, North Las Vegas has been clubbed hardest by the Great Recession. Tax revenues are in a free fall. The city’s housing woes landed on the front page of the Los Angeles Times last month, highlighting the crushed dreams of residents whose homes are worth a third of what they owe lenders.
The City Council passed a budget for fiscal year 2012 that eliminates more than 250 jobs to address a $30.3 million shortfall. Such a step would not have been necessary if unionized workers had agreed to roll back the ridiculous pay raises given to them in better times.
The dispute with police supervisors lies in their split from the larger officers’ union. Their new union hasn’t been able to come to terms on a contract, and the city says the supervisors’ new union isn’t covered by the old contract with the officers. The case is being heard by the Nevada Employee-Management Relations Board. Meanwhile, the officers’ union says the city had agreed to “no layoffs for 18 months,” and that an outside review also agreed to by the city concluded the city’s budget shortfall “absolutely does not require further concessions from” the union.
If the judges rule in favor of the bargaining units, where does the city get the money to pay everyone come July 1?
A private business under such attacks would probably close its doors. But government monopolies never have to worry about such pressures. Their customers, the taxpayers, are obligated to keep paying. Hence the power of public-sector unions.
Let North Las Vegas’ woes serve as a cautionary tale to other local governments. Take greater care in negotiating and signing contracts with employee bargaining units. Because even if you give away the store, the unions might still come back for the barren shelves, the furniture and the empty cash register.