Funds would be left high and dry if wildfires strike

Wednesday, June 14, 2000 | 11:51 a.m.

CARSON CITY -- A rash of wildland fires this summer could cause the state some severe financial headaches.

The emergency funds held by the legislative and the executive branches are nearly depleted because of higher than expected payouts.

"If we have a bad one (fire season), we may not be able to cover the costs," State Budget Director Perry Comeaux said Tuesday.

The options, he said, include "delaying payment of bills or a special session" of the Legislature.

Comeaux's statements were made to the state Board of Examiners, which has nearly used up its two contingency funds. The board, headed by Gov. Kenny Guinn, is going to ask the Interim Legislative Finance Committee for $600,000 to replenish the funds. That will last only until September.

The finance committee has $2.5 million left in its emergency fund, but that will be down to $1.6 million if it grants all of the requests for emergency appropriations at its meeting today in Carson City.

Last year wildland fires blackened 1.6 million acres in Nevada, and the state spent more than $4 million fighting the blazes. But it is still due to be paid by the federal government for battling fires on federal lands.

The state has a "rainy day fund" with about $128 million that can be used in emergencies, but both the governor and the Legislature must agree on spending the money. The problem is the Legislature is not in session.

Guinn questioned whether the Interim Finance Committee could make the decision for the full Legislature, but government attorneys seem to agree that only the full Legislature has control over the fund.

Comeaux said he has not encountered this problem in the six years he has been budget director.

"You can't fight fires without paying your bill," he told the board. He said he might find a solution in the next month "on ways to deal with this."

Comeaux said the two contingency funds, administered by the examiners board, are nearly empty. He said the state has already paid out more than $600,000 to lawyers who handle the appeals of indigent prison inmates, depleting one fund. And demands on the state fund to pay dated claims are draining that account.

Comeaux said he's asking only for $300,000 for each from the Interim Finance Committee. The next regular session of the Legislature doesn't convene until February 2001.