Outstanding bill vexes candidate

Willia Chaney's child care facility first got a $528,373 bill from the Nevada Department of Education in March 2003.

Five years later, the bill remains unpaid, and it could be a factor in the November election because Chaney seeks a seat on the Nevada Board of Education.

The Nevada Department of Education claims the candidate's nonprofit business, Smart Start Child Care Inc., is liable for federal funds that were supposed to feed poor children in a summer lunch program in the late 1990s. Investigators believe the funds were misspent on cars and salaries for workers who did no work.

In August, a Clark County District Court judge in a summary judgment ordered that Smart Start must pay the bill, but the nonprofit's lawyer has filed an appeal with the state Supreme Court.

State Superintendent of Public Instruction Keith Rheault said the Chaney matter could continue into next year.

Libo Agwara, the lawyer for Smart Start, also has asked the courts that Smart Start not be closed by the ongoing legal dispute.

"Defendants (Chaney and her husband, James Chaney) are in dire financial straits and they are in danger of the state executing the judgment to take one of the last child-care centers for low-income children," stated the appeal written by Agwara.

In her campaign for the state Board of Education, Chaney has already spent $1,200 for a campaign consultant named Dave Thomas, according to an August campaign finance report. The report also said she has not raised any contributions for her campaign.

Chaney is running against Doris Fletcher for the nonpartisan District 3 seat on the state board.

Agwara emphasized that it's important to distinguish between Chaney as a person and Smart Start, which is a separate legal entity. Chaney is named as an officer for Smart Start. While the company is in trouble, Agwara said, Chaney may still use her own money to campaign.

Calls to Chaney were not returned for this story, but Chaney has previously said she's not running to settle scores with the state. She said she would recuse herself from votes that present a conflict of interest if elected.

Agwara also did not think Chaney's motivations were "personal" and said that her client was trying to make the best of her experiences with the state.

"You can't fix things on the outside," Agwara said. "To effect change, you have to go on the inside."

The lawyer also said: "The way the state went after her is just crazy."

He repeated Chaney's contention that problems began after the Chaneys filed a formal complaint in 1998 with the Department of Education about one of its staff members.

State auditors also erred in not giving the Chaneys an exit interview or a chance to explain discrepancies in the audit report, Agwara said.

Agwara also contends District Judge Jennifer Togliatti ignored key evidence in the case. The lawyer also disputes the legal grounds for a summary judgment.

Contact reporter James Haug at jhaug @reviewjournal.com or 702-799-2922.