State will provide funds for nuke office

Friday, May 21, 1999 | 11:50 a.m.

CARSON CITY -- For the first time the state is going to supply the bulk of the money to operate the Office of Nuclear Projects, which is fighting to keep the federal government from putting a high-level nuclear waste dump at Yucca Mountain.

The Senate Finance Committee Thursday approved Gov. Kenny Guinn to spend $2 million in state money over the next two years to keep the office alive.

Sen. Bob Coffin, D-Las Vegas, said, "I commend the governor for sticking to the fight." He said there's been some political controversy but "he (Guinn) has risen above it."

Sen. Bill O'Donnell, R-Las Vegas, said he opposed giving state money to the office which in the past has relied on federal funds. He said he would support the budget if the state got reimbursed the money it is putting in the budget.

Senate Majority Leader Bill Raggio, R-Reno, said the committee will draft a letter to make sure the state gets its money back when major federal funding is resumed.

"It's not the federal government's fault that we were not funded," Raggio said.

Federal funds were cut off when an audit suggested the agency had misspent money. Bob Loux, director of the office, has denied there has been any unauthorized spending.

The office will also receive $800,000 in highway funds.

Peter Ernaut, chief of staff for Guinn, said with the loss of federal funds there was no alternative but to include state money to continue the battle against Yucca Mountain.

He said the governor has no problem with the plan that federal funds, if they become available, will be used to repay the state.

The federal government has contributed more than $70 million towards support of the office before it stopped sending money to the state.

The lone vote against the budget was cast by Sen. Joe Neal, D-Las Vegas, a long-time critic of the office. He has complained it has been used as a political tool by some office holders.