Falling tax revenue could force cuts in building construction

By Cy Ryan

Thursday, April 23, 2009 | 3:17 p.m.

CARSON CITY – Falling property tax revenue has hurt the state’s ability to raise money by selling bonds, lawmakers were told today.

The state Budget Office and state Treasurer Kate Marshall both informed a legislative budget subcommittee there would be less bonding capacity available to finance construction of state buildings during the coming biennium.

The budget office estimates there will be $126 million less. Marshall says the loaning ability will be reduced by $46 million.

Marshall’s office initially projected zero growth in property taxes statewide, but revised its estimates to a decline in property tax revenues of 6.5 percent for fiscal year 2010 and 3.5 percent in fiscal 2011.

Assembly Speaker Barbara Buckley, D-Las Vegas, told lawmakers that the state’s $350 million construction budget proposed by Gov. Jim Gibbons will have to be cut.

“It’s been a bad news day,” said Sen. Bob Coffin.

A joint budget legislative subcommittee reviewed proposed projects, including a $62 million regional medical facility and execution chamber for the state prison in Southern Nevada. Also in the recommended budget is a $35.7 million readiness center for the Nevada military in North Las Vegas. The state would have to contribute $11.7 million to the project.

The state is receiving less money from its share of the property tax and therefore it doesn’t have the ability to borrow money to fund all of the suggested projects.

Howard Skolnik, director of the state Department of Corrections, said a corrections system medical center, which would be located near the High Desert State Prison, is “desperately needed.”

Skolnik said he wants the execution chamber in Southern Nevada because the families of most of the victims live in the Las Vegas area. He said he must have room for official witnesses, the news media and the relatives of those persons who have been killed by the man scheduled to receive death by lethal injection.

Gibbons recommended closing the state prison in Carson City, which is more than 80 years old. But the budget subcommittees are looking at keeping it open.