Panic City Over at LVCVA

The Las Vegas Convention and Visitors Authority (LVCVA) appears to be in near-panic over Gov. Jim Gibbons’ plan to redirect a small portion of their $200 million-plus room tax subsidy to highway construction.

In a breathless press release yesterday, LVCVA Vice-Chair Keith Smith wrote, “Over the years, the LVCVA and the resort industry have generated more than $1.6 billion through the visitor-paid room tax to build such projects as schools, roads and parks.”

Notice the parsing here. LVCVA claims that it, ALONG with the resort industry, has generated some $1.6 billion in room tax revenue. The LVCVA doesn’t claim that IT alone generated that revenue. Indeed, no one I know of can definitely determine how much room tax is generated by LVCVA advertising programs and how much would come to Vegas with no LVCVA advertising whatsoever.

LVCVA is being, at the very least, disingenuous in lumping itself in with “the resort industry” - which spends oodles of its own money on advertising Las Vegas independently of the convention authority - and taking credit for generating that $1.6 billion.

Speaking of which, LVCVA gives the impression that ALL of the $1.6 billion went to build projects such as “schools, roads and parks.” Really? Then please give us a detailed list of the $1.6 billion worth of schools, roads and parks that LVCVA has funded.

Something tells me, though, that this claim isn’t exactly true either. I’m betting, though maybe I’m wrong, that only a PORTION of that $1.6 billion went to schools, roads and parks. And probably just a small portion at that.

No wonder LVCVA boss Rossi Ralenkotter is afraid to debate this issue in a public forum. When you have to mislead the public to defend your position, you’re probably in a pretty bad position to start with.

SUPPORT FROM THE NORTH

“The money to build and repair roads and highways has to come from someplace. If it doesn’t come from additional taxes and no one is giving money away, it could work to support bonds by transferring funds from eight years of hotel room taxes and from vehicle sales and entertainment taxes. . . . The governor’s plan for raising these highway funds looks promising for the North, as well as the South. It could work.”

- Reno Gazette-Journal editorial, 5/23/07

SUPPORT FROM THE SOUTH

“Lawmakers have known since last summer that Southern Nevada’s congested highways would define the 2007 session. . . . The issue should have been the Legislature’s highest priority. Now adjournment is days away, yet no viable plan is even close to a vote. Instead of having public hearings on a wide range of proposals, elected officials are still engaged in closed-door horse trading.

“Gov. Jim Gibbons has offered the only sensible plan to date: He wants to divert a portion of future growth in sales taxes on motor vehicles, live entertainment taxes and hotel room tax revenues into the highway trust to underwrite $2.5 billion in bonds for major freeway improvements. The plan would enable work on I-15 to begin this year and conclude by perhaps 2012.

- Las Vegas Review-Journal editorial, 5/23/07

FAMOUS LAST WORDS

“In fact, the (Las Vegas Convention and Visitors Authority), in particular, has more money than it knows what to do with.”

- Las Vegas Review-Journal editorial, 5/23/07

2 Responses to “Panic City Over at LVCVA”

  1. This whole thing reminds me of how hard the Elko Convention and Visitors Authority board of “conservatives” cried and wailed and did a gnashing of their hypocritical teeth about a year ago when something very similar was suggested by the City of Elko. Conservatives crack me up. Most just can’t walk the line.

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