Loux offers $29,000 to settle ethics complaint

By Cy Ryan (contact)

Wednesday, Feb. 4, 2009 | 2 a.m.

CARSON CITY — Bob Loux has proposed a settlement of the ethics complaint filed against him for improperly raising his salary as director of the Nuclear Projects Office.

Loux, who has resigned from the post, offered to repay more than $29,000 to resolve the case. The proposed settlement will be presented on Feb. 12 to the Ethics Commission, which could accept, reject or modify the proposal.

“This is not a done deal,” said Patty Cafferata, executive director of the Nevada Ethics Commission.

Assembly Minority Leader Heidi Gansert, R-Reno, who filed the ethics complaint against Loux, said, “there should be greater consequences” than just the proposed $29,000 settlement. She said she appreciates that Loux is willing to repay part of what he owes but he also raised the salaries of his staff.

Gov. Jim Gibbons in November demanded that Loux repay $64,000 to the state to address the overpayments.

The stipulated agreement, filed by Loux’s attorney, Thomas Perkins, states that if the commission rejects the settlement, “this matter will proceed to a full hearing before the commission” and this agreement may not be introduced as evidence.

In the proposed settlement, Loux said that in July 2007 he raised his salary from $55 per hour to $63, leading to an overpayment of $16,444. As the “appointing authority” for the office he “believed he had the authority to set salaries for himself and his staff within the limits of available money,” the settlement said.

Loux also adjusted his retirement costs so the state paid the full monthly premium instead of requiring his contribution. The agreement would require Loux repay $12,922 to the state covering the overpayment of retirement premiums.

If the Ethics Commission accepts the settlement, there would no further penalty, fine or fee.

•••

State Sen. Mike Schneider, D-Las Vegas, has an infrastructure project he believes could attract federal stimulus money: a light rail system connecting Henderson and the region’s proposed new airport in Ivanpah.

After the first leg is built to the proposed airport southwest of Las Vegas, Schneider sees the line connecting to McCarran International Airport and the Strip.

Schneider has introduced Senate Bill 115, which would require local governments to work together on establishing a fixed guideway corridor from Henderson to North Las Vegas. The bill, which was referred to the Senate Energy, Infrastructure and Transportation Committee on Tuesday, would require local governments to determine the route and to the “extent practicable” acquire any rights-of-way necessary for the line.

Such a system could help Clark County meet federal air quality standards, he said, adding that the light rail network could be fueled by solar power from Boulder City.

It would also alleviate traffic congestion, he said. The county has been so focused on addressing growth in past years that measures to address traffic problems have fallen by the wayside, said Schneider.

•••

The battle between Nevada’s local government officials and state legislators over money has been waged for decades — at least.

Tuesday was the beginning of the 2009 installment, as the Assembly Government Affairs Committee began hearing presentations from Northern Nevada governments.

The local governments’ message: We’re fiscally responsible. We’re hurting too. Please don’t take our money.

“We are the only government in Nevada with a self-imposed spending cap for the past 10 years,” Washoe County Manager Katy Simon testified. That, she said, has allowed the county to build up reserves for tough times.

Cities and counties complain that the state keeps coming to them with a hand out, even though they’re suffering the same economic troubles.

But complain is about all they can do. The Legislature has the power to take their money.

Representatives of Southern Nevada’s local governments are scheduled to testify next week.

Las Vegas Sun reporter David McGrath Schwartz contributed to this story.