Bush’s land sale plan is still alive in House

Benjamin Grove

Friday, March 11, 2005 | 11:37 a.m.

WASHINGTON -- President Bush's proposal to siphon federal land sale profit out of Nevada coffers may have suffered a setback in the Senate this week, but it is alive and well in the House -- in altered form.

According to a "briefing paper" that surfaced at a hearing Tuesday, a key House Resources subcommittee with jurisdiction over the issue is recommending that 35 percent of the land sale proceeds be sent to the federal treasury -- half what President Bush proposed.

The panel further proposes funneling 30 percent to the state education fund; 10 percent to the Southern Nevada Water Authority; and 25 percent to the Bureau of Land Management's special account for Nevada land projects.

Currently, under the 1998 law written by Nevada lawmakers, 85 percent goes to the BLM account with 5 percent to education and 10 percent to water programs.

The briefing paper proposal is just an initial recommendation, Resources Committee spokesman Matthew Streit said. Resources Chairman Richard Pombo, R-Calif., is still open to compromise with Rep. Jim Gibbons, R-Nev., a longtime member of the panel, Streit said.

"We haven't made any formal decisions on this," Streit said.

The increase in education funding coupled with the cut in what Bush proposed sending to the treasury are likely efforts to sweeten the proposal for Gibbons, who has called for more of the money to be used for education in the state.

But Pombo and Gibbons did not discuss that, Gibbons spokeswoman Amy Spanbauer said. Gibbons strongly opposes the panel proposal and Pombo did not seek his approval on it, Spanbauer said.

"He is still opposed to any amount of funding going to the federal treasury," Spanbauer said. Gibbons re-asserted that sentiment to Pombo as recently as this week, Spanbauer said. Gibbons aims to fight to keep all proceeds in Nevada, she said.

At issue is profit from federal land sold in Clark County at auction under the 1998 law. White House budget officers noted that sale proceeds have soared beyond expectations and could net an estimated $1.2 billion this year.

Federal taxpayers deserve a 70 percent cut of the cash to pay down the deficit, White House budget officials have said. That could net roughly $6 billion for the U.S. Treasury over a decade, according to estimates.

Nevada lawmakers have strongly opposed the White House proposal since it was unveiled last month. Senate Minority Leader Harry Reid, D-Nev., and John Ensign, R-Nev., this week said they had lined up enough support in the Senate to kill the proposal.

That leaves the battle to Gibbons and Reps. Jon Porter, R-Nev., and Shelley Berkley, D-Nev., who are lobbying their allies to keep the 1998 law exactly as it is. They won't settle for less than 100 percent of the money remaining in Nevada as part of any negotiation compromises, their spokespeople said.

"The law is the law," Porter spokesman Adam Mayberry said. "Congressman Porter is doing everything he can and working every angle to keep the existing law in place."01