By Mike Trask (contact)

Fri, Jan 9, 2009 (2 a.m.)

In a conference room on the second floor of Henderson City Hall, politicians responsible for getting us out of this budgetary mess met this week over turkey sandwiches.

The luncheon was billed as a legislative briefing, with Henderson city officials and state legislators discussing mutual budget concerns before the upcoming session.

But in no time, the chatter turned competitive: Who is in worse budget shape? Who would have to sacrifice more in the face of hard times? And, oh, help yourself to some cookies.

Nine legislators who represent parts of Henderson showed up to hear what everybody knows: Henderson is in rough financial shape.

The city is facing a $28 million shortfall this year. It’s projecting an 8 percent decrease in consolidated tax revenue, which accounts for roughly half the city’s operating budget.

Consolidated tax revenue, more than 90 percent of which comes from sales tax paid in the city, had dropped 7 percent from 2007 to 2008.

Plus, the city is projecting a 5 percent drop in property tax revenue next year.

For the city, it spells slashed budgets, a hiring freeze and optional buyouts for the city’s oldest employees.

But what worries the city even more than the plummeting tax revenue is the state’s budget shortfall of $2.3 billion for the next biennium.

Sen. Warren Hardy, a Republican, said, “We’re talking about the 800-pound gorilla in the room: Is the state going after Henderson’s funding?”

The state controls 88 percent of the city’s general fund revenue, said Steve Hanson, city finance director.

So basically the state can slash municipal budgets at will.

“The next five months are going to be brutal for you all,” Hanson told the state elected officials. “But carry us with you. Keep us in your thoughts.”

The plea sounded half like a Braveheart-esque motivational speech, and half like desperate ramblings.

Most of the state officials kept quiet. Rookie Assemblyman Richard McArthur, R-Las Vegas, questioned the wisdom of counting a hiring freeze as cost savings.

“This seems like smoke and mirrors,” he said.

Hanson explained the city was saving what it planned to spend. But, he acknowledged, “I see what you mean.”

Richard Perkins, the former Henderson police chief and former Assembly speaker turned lobbyist, piped up: State officials taking money from the cities is akin to taking money from their own constituents, he said.

But Hardy said the perception among many lawmakers is that municipalities aren’t as bad off as the state, and that the local governments have not done enough chopping.

“You need to decide what the essential functions of government are and you’ll get a lot of cooperation from the state,” he said.

Henderson has been cutting.

The conversation will continue.