Stimulus rift solved

CARSON CITY -- Score one for Gov. Jim Gibbons.

The Legislature's Interim Finance Committee agreed Monday to allow the governor to spend $257,000 to hire a federal stimulus fund director and assistant, and $10.4 million in stimulus money on weatherizing the homes of poor people.

Based on an oral opinion by Attorney General Catherine Cortez Masto, legislative lawyers also said the governor in the future can accept and spend American Recovery and Reinvestment Act funds without first securing approval of the legislative committee.

State Controller Kim Wallin said later Monday that she was given a written opinion by Masto and now will process all stimulus claims submitted by the governor without going to the committee for approval.

The controller, who pays state bills, said she immediately processed the spending of $40 million on other stimulus programs sought by Gibbons.

But she also questioned whether Gibbons can use stimulus funds to hire his funds coordinator. She said extensive approval is required from federal agencies before stimulus funds can be used for administrative purposes.

Last week the governor named Charles Harvey, an assistant recorder in Clark County, as his stimulus funds coordinator. Harvey takes office Sept. 2.

The vote Monday caps a month-long dispute between Democratic legislators and the Republican governor over who controls the state's expected $2.2 billion allocation in stimulus funds. So far, $615 million has been spent.

"We are here today because cooler heads have not prevailed on either side," said Sen. Bernice Mathews, D-Reno.

Although the committee vote gave him what he wanted, Gibbons still issued a statement that the committee did not need to act on the two items because he already approved them. He added he and his staff refused to attend the meeting because that would have given credence to the Legislature's authority to act on the matter.

While Democrats and Republicans bickered back and forth, the spending ultimately was approved by every Democrat on the committee.

All Republicans decided not to vote at all, maintaining that because of the Masto opinion, the committee had no say in the issue.

Assemblyman Bernie Anderson, D-Sparks, said he voted to make sure the funds got to the people who need them.

"I don't think the public cares anything about the fight going on between the governor and the Legislature" he added.

Back on Aug. 3, the Democrat-controlled committee on a party-line vote decided to hire a stimulus director and assistant and place them in the office of Wallin, a Democrat.

Republican Gibbons had wanted those employees in his office. He refused to allow state agency directors to meet with the controller and then 10 days ago issued an executive order that he said gave him the authority to name his own funds coordinator and spend the federal funds.

Legislative Counsel Brenda Erdoes said Monday that a state law gives the governor the authority to declare an emergency and move to spend money without the interim committee's consent if needed "to protect life or property."

Erdoes, however, recommended the committee approve the two matters Monday because Gibbons had not originally stipulated in paperwork submitted to the committee that the items were emergency matters.

"This stimulus money should have been out there working for several weeks," said Senate Minority Leader Bill Raggio, R-Reno. "It has been delayed for several weeks because of this confrontation."

But a new confrontation could be ahead.

Senate Majority Leader Steven Horsford, D-Las Vegas, stipulated that legislators were backing the spending of the weatherization money only if Gibbons complies with a new state law.

Horsford sponsored Senate Bill 152, which requires the state Housing Division to employ at least some workers who have completed apprentice programs for weatherization work. His goal has been to make sure those workers receive training that they can use in future renewable energy jobs. Gibbons signed the bill.

But the Housing Division intends to use the $10.4 million to hire five nonprofit contractors that it has employed in past years to carry out the weatherization work. Although they have trained employees, their workers have not gone through apprenticeship training conducted by union or management organizations.

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