Public works bill passes state Senate on party-line vote

CARSON CITY -- A bill that would generate as much as $270 million in borrowing capacity for public works projects was approved Monday by the state Senate.

However, the bill, sponsored by Senate Majority Leader Steven Horsford, D-Las Vegas, passed on a party-line vote of 11-10, three votes short of what supporters need to override an anticipated veto by Republican Gov. Brian Sandoval.

Senate Bill 192, the Nevada Jobs Initiative, would divert two cents of a local property tax rate from the state general fund back to transportation projects in Clark and Washoe counties.

The two-cent diversion would add up to $27 million, which is enough cash to issue about $270 million in bonds.

It is similar to a proposal to use portions of existing gasoline and sales taxes to build roads that was unanimously approved by the Senate during the 2010 special session.

"Creating jobs in this session is our No. 1 priority and that is why this measure needs to move forward," Horsford said.

Several Republicans spoke against the bill, primarily because the two cents Horsford is targeting is already part of a nine-cent diversion Sandoval put in his budget for higher education.

"At this time, with the budget situation as it is, diverting further funds from education is simply not an option," said Sen. Greg Brower, R-Reno.

The bill still needs to go before the Assembly and then to the governor, who probably will veto it, said Dale Erquiaga, senior policy adviser to Sandoval.

"Any bill that creates a hole in the budget would be vetoed if it reaches his desk," Erquiaga said.