Thursday, April 12, 2007 | 7:28 a.m.
CARSON CITY - Mike Dayton left his job in 2002 as chief of staff to then-Rep. Jim Gibbons in Washington after questions were raised about possible misuse of office funds for personal travel and for moving expenses, furniture and entertainment, according to former Capitol Hill aides.
Gibbons' congressional staff prepared a file on Dayton's spending for House officials, but Dayton quit shortly after the investigation began, and the matter was dropped, said the former aides, who were familiar with the investigation.
Nevertheless, once Gibbons was elected Nevada governor last year, he named Dayton as his chief of staff. Dayton's leadership has become an issue in Carson City after a series of missteps have raised uncertainty about whether the governor can accomplish his legislative goals.
Dayton did not return a phone call from the Sun or respond to a request for an interview through the governor's press secretary.
Gibbons dismissed the issue of Dayton's history. "This has already been in the news," he said in response to a question after emerging from a legislative meeting Wednesday. "This is an old issue. You just have to do your job and go look it up."
After Dayton was hired as the governor's chief of staff, Sun columnist Jon Ralston reported on the allegations in an e-mail newsletter. In an interview with Ralston, Dayton acknowledged the questions were raised, but he denied their substance.
He left the governor's staff because he was burned out, he told Ralston, not because he was "accused of some things I didn't do." He remained on good terms with Gibbons after leaving, he said.
The allegations and the manner in which Dayton left Gibbons' staff were well-known in Nevada Republican politics, according to several leading GOP figures who spoke on the condition they not be identified.
That made Gibbons' decision to hire Dayton a second time all the more surprising, especially because the campaign ended with lingering questions about Gibbons' behavior. The FBI is investigating whether Gibbons improperly received gifts from a defense contractor he helped win federal contracts.
Many Republicans expected the chief of staff job to go to Robert Uithoven, who replaced Dayton in Washington and then served as manager of Gibbons' campaign for governor.
Gibbons' staff and advisers have always broken down between those closer to first lady Dawn Gibbons and those closer to Jim Gibbons. Dayton is said to have always had a good relationship with Dawn Gibbons .
Congressional records show that Dayton charged the congressman's office more than $12,000 for 12 unexplained trips during a one-year period beginning about Memorial Day 2001. The purpose of the trips is not detailed in the documents.
Records spell out the purpose of many other trips Dayton made back to Gibbons' congressional district during that period. All travel by other members of Gibbons' congressional staff are clearly explained in itineraries.
Gibbons' staff also grew suspicious of Dayton's spending when he was moving from Washington back to the congressional district, the former aides said. House rules require staff members to pay for such moves . Dayton brought in boxes of personal effects and had them shipped via FedEx, former aides said.
Office FedEx outlays spiked in late 2001 and remained high through much of 2002. Shipping bills that had rarely topped $100 started coming in at two and - in one case - three times that amount, records show.
Once Dayton moved, staff began seeing large expenditures for office supplies and raised questions about whether any of it appeared in the district office, the sources said.
Staff members were sufficiently concerned to raise their doubts with Gibbons, after which Dayton was confronted and an investigation began.
Dayton left weeks later.
Not all of the staff knew about the allegations. Deanna Lazovich, who works for Gibbons in Carson City, said she had never heard about the questions and said she was under the impression Dayton and the congressman parted ways amicably.
Uithoven e-mailed the Sun: "As the congressman's former chief of staff, it would not be appropriate for me to comment on any personnel matters."
Amy Maier, another former Gibbons chief of staff, also said it would be improper to discuss personnel issues.
In Dayton's current job as chief of staff, more questions have been raised about his travel. He has been traveling from Carson City to his home in Las Vegas many weekends at taxpayer expense.
Dayton said the governor has asked him to be based in Las Vegas because most of the population lives in Southern Nevada. Therefore, when he travels from Carson City to Las Vegas at taxpayer expense, he's returning to his main office, not making a trip home. The travel has been approved, he said, by the state budget office.
Sun reporter Cy Ryan in Carson City and researcher Rebecca Clifford contributed to this report. Coolican reported from Carson City, and Mascaro from Washington.
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