Firm hired by Legislature misses deadline

CARSON CITY -- A firm hired by the Nevada Legislature to produce a report on the state's revenue structure has been sent a notice of default for failing to turn in the document by a July 1 deadline.

Lorne Malkiewich, director of the Legislative Counsel Bureau, said the notice was sent Wednesday to Moody's Analytics, the contractor hired to perform the study. The company has 10 days to respond by producing the final report, or the contract will be terminated, he said.

Malkiewich said officials tried to negotiate an extension with the West Chester, Pa.-based firm without success.

The firm has not been paid the $253,000 for its work on the study, he said.

Moody's author of the draft report, Mark McMullen, referred an inquiry to the firm's legal department, which could not be reached for comment.

Malkiewich said an arrangement still might be worked out with Moody's.

Members of the Interim Finance Committee's Subcommittee to Conduct a Review of Nevada's Revenue Structure were advised Wednesday in a memo of the decision to issue the default notice.

The firm produced a draft report that was rejected in May by the Vision Stakeholder Group, a panel of 19 Nevada residents appointed by the Legislature to help in the revenue study. The group's charge was to produce a document highlighting what the group wanted Nevada to look like over the next several years.

The draft report included a discussion on taxes but did not include any specific recommendations.

After rejecting the draft, Moody's was expected to bring a revised report back to the group for review and approval.