Reid, Sandoval discuss economic woes

CARSON CITY -- Gov.-elect Brian Sandoval met Tuesday with Senate Majority Leader Harry Reid, D-Nev., in Washington, D.C., to discuss ways to work together to move Nevada out of the recession, according to a statement released by their offices.

They discussed unemployment insurance and Medicaid funding, how to invest in clean energy, and ways to put Nevadans back to work, the statement said.

Nevada has borrowed more than $500 million from the U.S. Department of Labor in the past year to continue to pay state unemployment benefits to laid-off workers. Under a federal law, Nevada must pay interest on that loan, which is expected to reach $825 million by the end of 2011. It becomes due starting Sept. 30, 2011.

Also, Sandoval, a Republican, recently said he expects Nevada will have to spend $200 million more in the next budget to pay for Medicaid for an increased number of people. Medicaid is the health care program for the poor, disabled, blind and some of the elderly. The state already spends nearly $1 billion every two years on providing Medicaid. Most of the costs are covered by the federal government.

Reid said he thanked Sandoval -- who defeated his son Rory in the Nov. 2 race for governor -- for meeting with him and looked forward to working on state problems.

Sandoval said he asked for the meeting with Reid.

"Our meeting today was a productive discussion about specific ways we can work together to improve Nevada's economy," he said.