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May 20, 2009

Eastley livid over state's money grab from counties

By MARK WAITE
PVT

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Nye County Commission Chairman Joni Eastley had angry words Monday, for the Nevada Legislature, charging state legislators are grabbing county revenues to balance the budget.

Eastley appeared at a press conference with the Nevada Association of Counties in Carson City last Friday.

"The legislature, I guarantee you, is going to balance the budget on the backs of the counties. They are going to look at any source of revenues they can get their grimy hands on," Eastley said during announcements at the start of this week's Nye County Commission meeting.

In particular, she mentioned the Indigent Accident Fund, by which the state formerly covered claims for hospital bills. That money will now have to come from Nye County, she said.

"If anybody has an accident on one of Nye County's highways and they are indigent, that money goes to pay the hospital bills whether it's Nye Regional or whether it's the Pahrump hospital here. It's to keep the hospital whole so they're not going bankrupt paying for indigent care," Eastley said.

Commissioner Gary Hollis said the state is also claiming county money for geothermal leases. Last year Nye County realized $560,000 from geothermal lease payments.

Hollis also referred to plans by the state to collect some of the sales tax meant for the counties. The state Legislature formerly remitted a 1.5 percent administrative fee to the counties for collecting sales tax. That will be cut this year.

State Sen. Mike McGinness, R-Fallon, who represents this area as part of the vast Central Nevada Senatorial District, was sympathetic to Eastley's concerns and in particular the Indigent Accident Fund.

"That was set up to avoid the crisis counties have from time to time when you have a terrible bill after an accident. I just don't think it's right," McGinness said.

But in general, McGinness admitted, "Anything that's been left for the counties to try to keep their budget afloat, if there's any extra money the state has scooped it up."

Eastley was also worried about state legislation giving too many tax abatements for renewable energy projects. While Eastley previously expressed concern the county could "kill the goose that laid the golden egg" in requiring development agreements for solar energy projects, she has since changed her mind.

"If we're not going to be able to realize any revenue, or significantly less revenue than we thought we were going to be able to obtain from these bills, then I think a development agreement process is absolutely essential to keeping us whole," Eastley said.

One state bill would provide a 75 percent abatement of all taxes for solar projects, not just property taxes, Eastley said. She said Nye County hopes to realize some tax revenues at least during the construction phase of the solar energy projects, since some of the companies don't need to hire many people once the solar power plants are operational.

"The Legislature would be making a decision to abate the county's taxes but leave themselves and the school district whole. The problem with that is the state doesn't build roads, the state doesn't provide services and neither does the school district. I'm not diminishing the school district, they educate our kids, but they don't provide ambulances," Eastley said.

A bill proposed by Assemblyman Marilyn Kirkpatrick, D-North Las Vegas, would be the most agreeable, Eastley said. It would provide a 55 percent tax abatement for solar energy projects but would require the companies to appear before the county commission and explain why they want it.

Eastley also talked about wanting each of those companies to post a reclamation bond, similar to what is required of mining companies.

She said, "You'd better leave it the way you found it or we're going to have hundreds of acres of broken glass."

Eastley said a solution to the problems might be to amend Dylan's Rule, in which counties are only given powers delegated by the state Legislature.

"There are certain things we cannot go out and do on our own, we have to be given authority under the Legislature," Eastley said. She said Nye County should have authority to negotiate development agreements with renewable energy providers if the state gives them tax abatements.

While Hollis said bills in the past that would eliminate Dylan's Rule have died, Eastley said a bill in this legislative session by Sen. Terry Care, D-Las Vegas, may stand the best chance at changing the law.

Another bill Eastley said bears watching, is an attempt to expand a resolution passed in Washoe County statewide that would require counties not to plan beyond their water resources.

During a discussion on the 2009-10 budget later in the day Monday, Eastley said, "I have a bunch of descriptive, inappropriate terms for the Legislature."










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