Fossett’s widow refuses to pay

CARSON CITY -- The multimillionaire widow of missing adventurer Steve Fossett has no plans to pay the state $485,998 to cover Nevada National Guard costs of the unsuccessful search for her husband last fall.

Gov. Jim Gibbons announced Tuesday that Peggy Fossett, through her lawyers, has refused to cover costs incurred by the Guard in the Fossett search. He made the announcement during a meeting of the state Board of Examiners.

In a letter to the governor, Peggy Fossett's lawyer said Fossett spent over $1 million of her own money for a private search for her missing husband.

"The private search brought additional equipment and personnel to the search, which eliminated the need for the government to search areas already covered," wrote Mary C. Downie on behalf of the Fossett estate. "We believe the search conducted by the state of Nevada is an expense of government in performance of government action."

Downie also stated that Peggy Fossett acted with the understanding that Nevada would be responsible for the costs of its search.

Hotel magnate Barron Hilton earlier voluntarily gave $200,000 to cover some state costs for Fossett's search.

Steve Fossett took off from Hilton's Flying M Ranch near Yerington on Sept. 3 on what was supposed to be a short pleasure flight. He never returned.

His disappearance spawned a massive, month-long search by the Civil Air Patrol, the National Guard and ground searchers that turned up six decades-old crashes, but no Fossett.

Earlier this year, a judge in Chicago ruled Fossett was legally dead and awarded his eight-figure estate to his wife.

In all, National Guard costs for the search were $685,998, mainly operations costs of Black Hawk helicopters.

The Gibbons administration announced in May that it would seek voluntary reimbursement for the search costs from Fossett's estate in part because of state government's financial problems.

Gibbons and the Legislature earlier this year made $914 million in budget cuts because tax revenues have been far less than expected. Another 14 percent in cuts could be made on state agency budget projections next year.

Downie made no mention of the state's financial problems in her letter to Gibbons.

State Emergency Management Director Frank Siracusa said in April there is no precedent of the government pursuing people for search costs just because they have money to pay for it.

"You get lost, and we look for you," Siracusa said. "It is a service your taxpayer dollars pay for."

But Siracusa said the final decision on whether to seek reimbursement funds rested with Gibbons.

Ben Kieckhefer, Gibbons' press secretary, said Tuesday that Department of Public Safety Director Jerry Hafen had contacted the Fossett estate about paying costs for the search.

He said the state never actually sent Peggy Fossett a letter, noting the governor misspoke when he said during the Tuesday meeting that a letter had been sent.

Fossett's lawyers, responding to media accounts that the state wanted money, sent a letter refusing to pay, Kieckhefer said.

During Tuesday's meeting, the Board of Examiners refused to take $485,998 out of an emergency fund to reimburse the National Guard for the search costs.

Secretary of State Ross Miller, in particular, said he would not allocate the money until an audit is completed that details the procedures used in the Fossett search. That audit should be completed June 19.

Miller raised questions about whether the National Guard kept track of the costs of the Fossett search.

National Guard Gen. Cynthia Kirkland said the Guard estimated its costs twice a day during the search.

In response to Miller's questions, Kirkland said it was not unusual for the Guard to participate in search and rescue missions.

She said the Guard needs the money to cover training needed by helicopter crews who will be deployed to the Middle East in the fall.

Contact reporter Ed Vogel at evogel@reviewjournal.com or 775-687-3901.