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June 4, 2012

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Democrats renew stimulus funds feud with governor

One lawmaker said issue might have to be resolved by Nevada Supreme Court

Thursday, Sept. 17, 2009 | 4:49 p.m.

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Gov. Jim Gibbons

Sun Coverage

CARSON CITY – Legislative Democrats resumed their feud Thursday with Gov. Jim Gibbons over the spending of millions of dollars in federal stimulus money.

One lawmaker, at a meeting of the Legislature’s Interim Finance Committee, suggested the issue might ultimately have to be resolved by the Nevada Supreme Court.

Sen. Bob Coffin, D-Las Vegas, said the governor doesn’t think the committee has the authority to oversee the spending and that the Gibbons administration has broken the law in the handling of the money.

But Lynn Hettrick, deputy chief of staff for Gibbons, responded to Coffin’s remarks, calling them “inappropriate.” Coffin should file suit if he doesn’t agree that the governor is acting legally, Hettrick said.

Coffin said later that the legality of the interim committee must be resolved by the Supreme Court. The committee handles state money matters when the Legislature is out of session.

When Gibbons ran into objections by the finance committee in approving the spending of the stimulus fund, the governor declared all the federal money would be spent under emergency powers — freeing him to do what he chooses without the approval of the finance committee.

The finance committee, at its last meeting, refused to approve the plans of Gibbons to spend the money. And that has sparked harsh words between the two branches of government.

The committee, at its Thursday meeting, reviewed the spending of more than $45 million in stimulus money on 16 programs. The committee could not approve or reject the plans because of the governor’s emergency declaration.

Still, committee Democrats were not happy.

Assembly Speaker Barbara Buckley, D-Las Vegas, said the object was to get the millions of dollars “on the street as quickly as possible.” But she said there was not an emergency in many cases in spending the money without review by lawmakers.

She said the administration was “playing fast and loose” with the designation of this spending as an emergency.

For instance, she said there was no emergency to spend $430,895 for three new substance abuse counselors in Las Vegas for the parole and probation program.

Hettrick said this federal money was being spent “for the protection of property.”

Buckley questioned what would happen in the 2011 Legislature when it comes time to provide money to pay for these three officers from the state funds. There will be a shortfall for the Legislature to deal with in 18 months.

Hettrick said the three positions would not be funded in the next budget.

Senate Majority Leader Steven Horsford, D-Las Vegas, complained that much of the money was going out of state and not going to hire people in Nevada. In one case, a California firm is going to be hired.

Horsford said “You need to be diligent” in using this money to hire out-of-state firms. “There are a lot of people in Nevada that can do this work.” But state officials said in many cases these out-of-state firms are the only ones qualified to handle the work.

In another item, the legislative committee agreed to allow the Aging and Disability Services Division to reduce the senior citizens’ property tax assistance because of a shortage of money. The average grant will be reduced $6 to $329 for 16,375 low income senior citizens.

The lawmakers also got more bad financial news. Chuck Duarte, chief of the Medicaid program, said that program would be an estimated $30 million short during the next two years because of growth in enrollment.

The program provides medical care for the indigent.

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