Controller to take action on those who owe state money

The state controller says businesses and individuals owe Nevada more than $158 million and her office intends to recover at least some of it.

Controller Kathy Augustine released a report that shows the amount of money owed to state agencies as of March 31. She now will request bids from collection agencies who will try to collect the debt.

''The state will not pay a fee,'' she said. ''We will negotiate a percentage in their contract. That will be their pay.''

The amount owed is higher than previous projections. During legislative hearings last year, Department of Taxation officials estimated the debt was about $60 million.

At least two collection agencies will be hired by the controller's office. Jeannine Coward, assistant controller, said collection agencies generally take 12 percent to 50 percent of the amount of money they recover. Debts older than six years cannot be collected under statute of limitation laws.

''We hope the collection agencies are in business by the end of the summer,'' Augustine added.

Collecting the old debt is particularly important now because of concern by Gov. Kenny Guinn that tax revenues may not be sufficient to provide necessary services starting in 2001.

''We need to start looking,'' Augustine said. ''When the state had a lot of money, not as much attention was paid to the debt than should have been paid.''

She said she hopes collection agencies will recover as much as 50 percent of the debt. Collection programs in Connecticut and Massachusetts have achieved those collection rates.

Initially Augustine wants state agencies to determine the age of the debt. Now her office knows only that $126 million has been owed more than 60 days.

Augustine said the state does not plan at this point to release publicly the names of debtors. That could be a future option.

But she and Coward anticipate the collection agencies will move to place negative information about the debt on the credit reports of the companies and individuals if they balk at paying the state.

Of the debts, $84 million is owed to the Department of Taxation. Most of that money is delinquent sales and property tax debt owed by companies. About $25 million is owed to the division of Industrial Relations and $18 million is owed to the Department of Employment Training and Rehabilitation. More than 70 departments are owed money.