Democrats reject Gibbons’ ‘stimulus czar’ proposal

By Cy Ryan (contact)

Monday, Aug. 3, 2009 | 2:38 p.m.

CARSON CITY – Democratic legislators have rebuffed the plan of Gov. Jim Gibbons to hire a high level official in his office to oversee the $2.2 billion in federal stimulus funds coming to Nevada.

By a straight party line vote, the Legislative Interim Finance Committee voted to place the oversight function in the office of Controller Kim Wallin, a Democrat.

The committee accepted the recommendation of Senate Majority Leader Steven Horsford, D-Las Vegas who put the program with the controller and at a pay less than the governor recommended.

After the vote, Gibbons’ Chief of Staff Robin Reedy said, “I do believe the controller’s office has over exaggerated their ability” to handle the program. She questioned the decision of the finance committee to downgrade the salary from the suggested $122,000 a year to $60,000 to $90,000.

Gibbons suggested the program be in his office, which would allow the hiring of a so-called “stimulus czar” without going through the personnel system. And Reedy rejected the suggestion that this would be a political appointment rather than a qualified individual to work in the governor’s office.

Mark Taylor, chief deputy in the controller’s office, said it has already been “neck deep in all ARRA reporting,” referring to the American Recovery and Reinvestment Act.

He said there have been weekly meetings on the requirements of the federal act. “We’re on top of the issue. We will be pretty strong.”

Before the vote, Senate Minority Leader Bill Raggio, R-Reno, said he could not support placing the stimulus executive in the controller’s office. He said it was “unfortunate” that personalities were involved.

But Assemblywoman Debbie Smith, D-Sparks, said it was not a personality issue. It’s to place it in the office where the person would best function. Before the vote, she said “this is not a partisan issue.”

But Raggio said the governor has certified the state is complying with the federal government regulations and reports. But he is being taken out of the loop, Raggio said.

After the vote, Sen. Randolph Townsend, R-Reno, said this was purely a partisan move. If the controller would have been a Republican, the Democrats would not have placed the program under her.

The so-called “stimulus czar” would compile how the money is being spent, whether it was effective and to be the central person for answering and informing the public. The proposed $122,000 salary was similar to other cabinet members in the Gibbons’ administration.

But Smith said other cabinet members supervise hundreds of employees. This individual would be responsible for himself and an administrative aide. She said this would be a technical person who collects data.

Andrew Clinger, director of administration in charge of the budget office, offered to have the position under him. He said the governor must have some authority since he is the one who has signed off for these stimulus funds.

Under the plan by Horsford, the new “stimulus czar” would be in the classified service and be chosen through the state personnel system. “We need formal qualifications,” he said. The governor, if it was in his office, could hire someone who is not qualified, said Horsford.

Going through the classified service guarantees the person has the “basic qualifications to do the job,” Horsford said. The controller’s office can make an emergency appointment while the personnel department lays out the qualifications and the salary. If the individual hired on an emergency basis does not fit the qualifications, he or she would be out of a job.

Raggio said, however, this was an important position. And making it a classified position will make it difficult to get rid of the individual if he or she doesn’t perform. Classified workers have rights to their job and there must be a reason for dismissal.

Reedy said this was her fourth week in the office and “everyone will agree that I have hired very competent people.” She said she would have gone through an appointment process and looking at the qualification and make a recommendation to the governor.

She said she did not think the controller’s office would be able to handle this at a reduced salary for the stimulus executive, as recommended by Horsford. The finance committee, she said, has made this a permanent position by making it classified.

This is a year to year job and “it’s hard to get the Legislature to remove a job,” she said.