Police union's health benefits in trouble

City officials fear taxpayers may have to bail out the Las Vegas police union's health insurance plan.

But union officials adamantly deny claims by city auditors and Las Vegas City Councilwoman Lynette Boggs McDonald that the stability of the taxpayer-financed health care plan is in question.

They claim the insurance fund is financially strong, and that the city is trying to damage the union's reputation following a failed attempt to deconsolidate the Metropolitan Police Department. The agency is co-funded by the city of Las Vegas and Clark County.

"They are trying to find some way to justify their audit of the police department," said Andy Anderson, president of the Las Vegas Police Protective Association.

In May a police department comptroller asked the union to conduct an audit of the taxpayer-financed insurance plan after learning the union's reserve fund had dwindled. But a full audit of the $17 million a year program has yet to be completed, and Anderson now says the union isn't going to conduct one because there is no need.

Some city officials said privately that they believe the police union is avoiding providing the city and Clark County with complete information about the plan's finances. Until an audit is completed, no one can say how serious the problem is, they said.

"I know the city is in no position to bail anyone out, especially if we are talking about sums in the millions of dollars to keep this particular plan solvent," Boggs McDonald said. "There are no blank checks and no spare funds for this."

According to city officials, the union already has asked the city, county, and North Las Vegas for more money to finance the plan as part of ongoing labor negotiations.

Anderson acknowledged Friday that the health plan's reserve funds have been depleted by $2.9 million within the past year. However, he said it is not the first time the reserve fund has gone down, and disputed any claim that the program is in jeopardy.

Anderson said cost-cutting measures the police union will implement in the coming months, combined with the receipt of money owed the union under the police collective bargaining agreement for inflation, should remedy the financial strain.

The union president estimated the plan's finances for this year total about $15 million. In the union's tax returns for 1998, the program's expenses were listed as $17.4 million.

"It is always somewhat of a red flag when the revenues coming in are not covering the cost of the plan," Boggs McDonald said.

The union handles insurance coverage for about 3,000 union members along with about 6,000 others, including dependents. Those covered include Las Vegas police officers and civilian employees, North Las Vegas officers, some Lincoln County sheriff's deputies and city employees such as officers with the Las Vegas Marshal's Office.

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