Controversial union bill seen as ‘credit positive’

Associated Press

Friday, June 19, 2015 | 3:13 p.m.

CARSON CITY — A major credit ratings agency is praising a recently approved bill allowing local governments in Nevada to tweak contracts with their unions during economic downturns.

Moody's Investor Services said in a weekly newsletter released Wednesday that passage of SB168 was a "credit positive" because it gives more financial flexibility to local governments.

The bill allows local governments to renegotiate union contracts if revenue drops more than five percent in a year, and to fence off a quarter of budgeted spending from union negotiations. It doesn't affect school districts.

Moody's said the newly approved bill would give cash-strapped local governments like North Las Vegas more control and flexibility in future negotiations with employee unions.

Democrats and union lobbyists strongly opposed the bill during the legislative session.