Archive for November, 2009

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Keystone Announces Endorsement of GOP Fiscal Conservatives in State Senate Races

By Sean Whaley | 12:07 pm November 16th, 2009
CARSON CITY – Today the Keystone Corp., which identifies itself as Nevada’s leading political voice for free market business development, private sector job creation and fiscal conservatism, announced endorsements in key Nevada state Senate races for the upcoming 2010 election cycle.

The Keystone Corp. is a statewide political action organization that recruits, supports and advocates for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Endorsed candidates include: Sen. Barbara Cegavske – running for reelection in Clark County’s District 8; Ty Cobb – currently an assemblyman representing District 26, running for state Senate in Washoe County’s District 4; and Chad Christensen – currently an assemblyman representing District 13, running for state Senate in Clark County’s District 9.

Other endorsements are James Settelmeyer – currently an assemblyman representing District 39, running for state Senate in the Capital District; and Michael Roberson – an attorney from southern Nevada, running against Sen. Joyce Woodhouse in Clark County’s District 5.

Keystone’s board members offered the following comments for each of their endorsed candidates for state senate:

“Sen. Barbara Cegavske has a proven record as a fiscal watchdog on behalf of the Nevada taxpayer. Sen. Cegavske is a conservative senator Nevadans need to fight for their interests in Carson City.”

“Assemblyman Ty Cobb has been a consistent, reliable and fierce advocate on behalf of the Nevada taxpayer, and we believe his voice on fiscal discipline and accountability will be a needed asset to our state Senate.“

“(Christensen) has fought to control government spending in order to promote economic growth. Chad Christensen will be the strong advocate for private sector job creation and limited government.”

“Assemblyman James Settelmeyer understands what is needed to make Nevada fiscally strong. He is one of the hardest working legislators in Carson City and a genuine policymaker. Mr. Settelmeyer will make the right decisions to promote economic growth while protecting taxpayers.”

“In our interview process, we found Roberson to be a strong and principled advocate for private sector job creation in Nevada. He will be a welcomed addition to the state Senate, replacing a senator who supported job-killing tax hikes in the midst of one of Nevada’s worst recessions in state history.”

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Reno Chamber Hears Pros, Cons of Yucca Mountain Project

By Sean Whaley | 6:10 pm November 12th, 2009

RENO – Members of the Reno-Sparks Chamber of Commerce heard a spirited debate today on the pros and cons of establishing a high level nuclear waste repository at Yucca Mountain, but no formal position is expected from the group anytime soon.

Even so, several of the 50 or so people in attendance indicated by a raising of hands after the debate that they would favor negotiations with the federal government on Yucca Mountain versus maintaining the current official Nevada position of flatly rejecting the project.

The hour-long debate featured Reno resident Ty Cobb as an advocate for discussion and negotiation, and Bruce Breslow, executive director of the Nevada Agency for Nuclear Projects, presenting the case against Yucca Mountain.

Cobb served as the special assistant to President Ronald Regan for national security affairs when the “Screw Nevada” bill making Yucca Mountain the only site under consideration for the repository was passed by Congress in 1987. Breslow is a former mayor of Sparks who assumed his new position in December 2008.

The debate made one issue clear: Even those who support negotiations do not support a permanent storage site at Yucca Mountain.

Both Cobb and Breslow agreed that within 30 to 100 years, science and technology will have developed to the point where alternatives will be available making long-term storage of the waste unnecessary.

Where the two diverge is over what to do with the waste in the meantime.

Cobb told the 50 people in attendance that he believes Yucca Mountain is a suitable location to store the waste temporarily, for not more than 100 years or so, while the science of reprocessing or recycling the nuclear waste advances to the point where an alternative to storage is identified.

There are 160 million people living within five miles of the waste now stored at the nation’s nuclear reactors, which he called a “terrorist’s dream.”

Moving the waste to Nevada, which Cobb said can be done safely, for more secured storage would bring billions in benefits to Nevada. The Yucca Mountain storage project could cost as much as $90 billion, bringing work to thousands of residents, he said.

Breslow disagreed, saying leaving the waste where it is while technology develops to where the material can be reprocessed or recycled is a better alternative. Shipping the 70,000 metric tons of waste to Nevada, only to ship it back to reactors for use after reprocessing, is not a workable alternative, he said.

Cobb said his son, Assemblyman Ty Cobb, R-Reno, proposed legislation in 2009 that would have pushed for a nuclear fuels reprocessing facility. The younger Cobb, who attended the discussion, said his resolution did not get a hearing.

Breslow said the state is in a difficult situation because of the language of the Nuclear Waste Policy Act says that if Nevada officials decide to negotiate on Yucca Mountain, all rights to protest the project are forfeited.

Cobb replied that Senate Majority Leader Harry Reid, D-Nev., could use his considerable influence to get Congress to amend the act to allow for such discussions.

But there is some disagreement about whether Nevada is in fact precluded from entering into such negotiations. A legal opinion issued in 1999 by Nevada attorney Joe W. Brown suggests that engaging in a discussion of the proposed Yucca Mountain project to explore the possibility of receiving benefits does not “imply consent” to accept the facility.

Tray Abney, director of government relations for the chamber, said he does not believe the group will take a position on Yucca Mountain in the near term. The purpose of the discussion was to educate members, he said.

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Heller Says Federal Stimulus Funds Not Helping Economy

By Sean Whaley | 3:44 pm November 12th, 2009

CARSON CITY – Rep. Dean Heller, R-Nev., said today the federal stimulus program is not working because it is creating short-term public jobs, not sustainable private sector employment.

In an appearance on the Nevada NewsMakers program, Heller said only six percent of the stimulus funds went to roads and bridges where private sector jobs are actually created.

“If that would have been in the 50 to 60 percent range that would have gone to roads and bridges I’d have been more apt to have supported it,” he said of the stimulus bill. “But to know it just went to a bunch of pork projects out there and earmarks, to me I knew it was not going to be a program that was going to actually stimulate this economy.”

The state and national unemployment rates have continued to rise during the stimulus funding effort, even though the Obama Administration said the rate would level off at eight percent with the program, Heller said.

That is why Heller said he did not support the stimulus funding even though it has brought money to northern Nevada, including $2 million for the V&T Railroad reconstruction project from Virginia City to Carson City.

Heller said his choice to stimulate the economy would have been to cut the payroll tax in half across the country.

“Let’s be competitive in this country,” he said. “Our corporate taxes in this country are so uncompetitive. That’s where I would start, is try to make our country as competitive as other countries around the world.”

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University Regent Announces as Democratic Candidate Against Heller for Congress

By Sean Whaley | 8:17 am November 12th, 2009
RENO – Wearing the same military uniform he first put on in June 1944, Las Vegas Democrat and university Regent Jack Schofield announced yesterday his intention to challenge Rep. Dean Heller, R-Nev., for Congress in District 2.

Schofield said he decided to run for the seat despite the fact he does not live in the district. Part of his district as a regent does encompass the Congressional 2 seat, he said. District 2 encompasses almost the entire state of Nevada except for urban areas of Clark County where Congressional Districts 1 and 3 are located.

Asked if his non-residency would be an issue with the rural and northern Nevada residents who comprise the majority of the district, Schofield said probably so for some voters.

But Schofield said he will try to win over voters in District 2 by being a “champion for their cause, especially water.”

“We are in trouble in Washington, DC,” he said. “We need someone to get in there and fight for our rights.”

Schofield used his participation in Reno’s Veterans Day Parade as a backdrop for his announcement, made on the steps of the U.S. District Court building downtown.

Schofield, 86, said he wants to represent and be a champion for northern and rural Nevada with an eye to protecting the region’s water supply from thirsty Las Vegas. Schofield said he would accomplish this by working in Congress to find money for desalinization plants on the California coast that could satisfy Southern Nevada’s water needs.

Schofield said there are over 2,000 such plants currently operating all over the world.

“But we need some representation back in (Washington) DC to make sure we get some money earmarked so we can build those desalinization plants and bring (water) into Nevada,” he said.

Schofield, who served eight years in the Nevada Legislature from 1970 to 1978, said he does not believe Heller is representing average Nevadans.

“He voted against the health care bill and I support it to the hilt,” he said.

Schofield said his fighter pilot mentality gained in World War II would bring some value to Congress. It isn’t only the issues, but the need for civility that is at issue, he said.

He pointed to Heller’s comments at a Carson City Rotary Club meeting in August where he criticized the Cash for Clunkers program. As reported in the Nevada Appeal, Heller singled out a member of the audience who said he had taken advantage of the program, prompting the reply: “Congratulations. Everybody else in the room paid for your car.”

The man left saying he would never vote for Heller again.

“Can you blame him,” Schofield asked. “For insulting him in front of all those people.”

Schofield is one of two announced Democrats. The other candidate is Paul Reeves of Pahrump.

Schofield is in his second term as regent, having won reelection in 2008 without opposition. He is also a former World War II fighter pilot with the U.S. Army Air Force. Born in Arizona, Schofield has been a Nevada resident since 1937.

Democratic Congressional 2 Candidate Jack Schofield

Democratic Congressional 2 Candidate Jack Schofield

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Lawmaker Questions Accuracy of Federal Stimulus Reporting in Nevada

By Sean Whaley | 11:05 am November 11th, 2009

CARSON CITY – A state lawmaker yesterday questioned the accuracy and completeness of the reporting on the use of federal stimulus funds in Nevada.

Sen. Bill Raggio, R-Reno, asked how it is possible that thousands of jobs have been “created or retained” in Nevada with stimulus funds while the state unemployment rate continues to rise.

Raggio, a member of a legislative panel charged with reviewing the use of federal American Recovery and Reinvestment Act funds in Nevada, said he would like to know how many jobs were actually created as opposed to “retained” under the stimulus program.

“I don’t think we’re getting, and the public isn’t getting, a really accurate picture of just what the stimulus funding is creating with respect to jobs,” he said.

More specific and detailed information is needed to communicate what the program is doing for Nevada, particularly in job creation, Raggio said.

“I think this is important information, and I don’t for a moment believe that 4,000 teachers would have been laid off but for stimulus money,” he said. “So I think we need to know how many jobs were actually created. And I am not getting that information either from the state or the federal report.”

The Nevada state website that reports the use of stimulus funds shows 5,080 jobs created or retained with the stimulus funds, including 4,190 jobs in education. The jobs information is not broken out between created or retained on the state website.

Local governments and agencies report their own stimulus fund spending.

Raggio’s questions came during a meeting of the Interim Finance Committee’s Subcommittee for Federal Stimulus Oversight.

David Fraser, executive director of the Nevada League of Cities and Municipalities, told lawmakers the jobs information he provided to the committee from the cities was not broken out between new and retained jobs, but would be provided as requested.

Raggio noted that some efforts at reporting new jobs have been made. The city of Las Vegas, for example, has a chart showing its stimulus funding and jobs created. The city of Sparks has also made such an effort, he said.

Debbie Smith, chairwoman of the oversight panel, said every effort needs to be made to provide clear and understandable information to the public about the use of the stimulus funds.

Nevada is expected to receive about $2.1 billion in stimulus funds. But counties, cities, hospitals and other agencies and organizations are receiving stimulus funds directly, and the data is not included on the state website.

State Budget Director Andrew Clinger said an effort is currently under way to get all of the stimulus spending in Nevada available on one website. Funding to approve the state’s share of this effort will be considered by the Legislature’s Interim Finance Committee later this month.

Clinger said he understands Raggio’s concerns about the job creation numbers, but said the state has followed federal requirements in reporting the numbers.

The question is, would you have really eliminated those jobs without the stimulus funding, he said.

“We don’t attempt to answer that question,” he said. “We’re just reporting using the federal guidelines.”

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Furlough Exception Granted to State Correctional Employees

By Sean Whaley | 12:50 pm November 10th, 2009

CARSON CITY – The state Board of Examiners voted unanimously today to exempt correctional officers and other essential personnel with the Nevada Department of Corrections from a one-day-a-month furlough requirement.

The exemption was approved only for the current fiscal year, which ends June 30, 2010. The agency had already been exempted on a month-to-month basis for furloughs that began for most state employees on July 1.

Howard Skolnik, director of the department, identified areas of savings in his budget that will generate the $3.8 million needed to cover the cost of eliminating the furloughs for the 2009-2010 fiscal year.

The Board of Examiners, made up of Gov. Jim Gibbons, Attorney General Catherine Cortez Masto and Secretary of State Ross Miller, approved the proposal.

Skolnik said the money to cover the cost of keeping correctional officers working full-time will come from several sources, including lease payments from inmates for their use of gyms and prison store space. The payments would come from the inmate welfare fund, which generates revenue from sales of items to inmates. Inmates are already paying for the equipment and staffing at these types of facilities, so it seems logical to charge for the use of the space as well, he said.

If the furlough exemption is to be continued in the second fiscal year of the budget, additional savings will be required. One potential source of revenue is the leasing of the Southern Nevada Correctional Center in Jean to a private firm to house inmates, Skolnik said. The state closed the facility in June 2008.

The GEO Group Inc., a private correctional management company based in Florida, has expressed an interest in using the facility for a payment of $2.5 million to the state for one year beginning July 1, 2010, he said.

The 2009 Legislature approved the furlough program as a way to balance the state budget. Gibbons had proposed a straight pay cut instead.

Skolnik said the Legislature never asked him about the furlough concept and whether it would work for his department. The agency is already understaffed to start with by about 15 percent, he said.

Furloughs, which would reduce staffing levels by another 5 percent, would increase the risk of injury and death to staff because key positions and services could not be provided, Skolnik said.

“From my perspective furloughs for correctional officers are not a viable alternative,” he said.

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Statewide September Gaming Win Down 9 Percent for 21 Months of Straight Declines

By Sean Whaley | 11:40 am November 10th, 2009

CARSON CITY – Nevada’s gaming revenues continued their slide in September, but for the second consecutive month the decline was only in the single digits.

Nevada casinos won $911 million in September, a 9 percent decline over September 2008 when the industry brought in $1 billion in revenues, according to a report released today by the Gaming Control Board.

The industry win in August was 9.3 percent lower than in August 2008, so the September report shows a slight improvement over the month. Even so, it was the 21st straight month of revenue decline for Nevada’s biggest industry.

Frank Streshley, control board Tax and License Division chief, said there were some positive elements in the report. For the first time since March, statewide gaming revenue exceeded $900 million, he said. The Las Vegas Strip, which contributes 53 percent of the total state gaming revenue, saw a decline of only 3.6 percent in September, the smallest decline since June 2008, he said.

A big reason for the stronger showing on the Strip was baccarat play, a game preferred by high end gamblers. Strip casinos took $98.5 million from baccarat players, a 30 percent increase over September 2008.

Another positive was the amount of money played on slot machines statewide, which totaled $9.1 billion. The figure was down 6.9 percent compared to the same month in the previous year, the smallest decline in 12 months, Streshley said.

A significant and favorable factor in the September report was the Floyd Mayweather-Juan Manuel Marquez fight on Sept. 19 at the MGM in Las Vegas, he said. The fight brought in high end players and contributed to the baccarat win by casinos, Streshley said.

“We have seen two months of really strong baccarat play,” he said. “So with the Strip’s numbers being down only 3.6 percent you are seeing a rebound there. But there is going to be a lag between the Strip recovery versus our local markets.”

Clark County overall gaming win in September totaled $774 million, down 9.3 percent over September 2008. Downtown Las Vegas was off 8.7 percent, while the Boulder Strip was off 28 percent.

Washoe County was down 6.4 percent for the 27th straight month of gaming revenue declines.

State Budget Director Andrew Clinger had no real comment on the gaming report, saying other tax reports due by the end of the month, including taxable sales, will be examined before a decision is made on whether a special session of the Legislature is needed to keep the current budget in balance.

“We’ll just have to see when the revenues come in at the end of November where we’re at,” he said.

Not only are many of the state’s tax revenues coming in lower than projected, but the spending side of the budget is also an issue, Clinger said. Medicaid spending is much higher than budgeted, which he said is a greater concern than the revenue side of the equation.

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First Two Gold Star License Plates Presented by Gov. Gibbons

By Sean Whaley | 4:33 pm November 9th, 2009
CARSON CITY – Gov. Jim Gibbons today presented Gold Star Family license plate 0001 to Roger Valera (left) and plate 0002 to Sally Wiley (center) at the Carson City Department of Motor Vehicles office. Valera lost his son Ray near Baghdad in 2007. Wiley lost her son Sean near As Salam, Iraq this year. The Gold Star Family license plate was authorized by the Nevada Legislature last session and is now available statewide at DMV offices. Parents, step-parents, spouses, grandparents, siblings and step-siblings of service members killed while on active duty with U.S. Armed Forces qualify for the plate. The plate is marked “FV” and stands for “Fallen Veteran.” (Photo by Julie Duewel, Nevada Dept. of Transportation)
ValeraWilleyGibbons

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Senate Candidate Launches Issues Campaign, Calls On Legislators To Weigh In

By Nevada News Bureau Staff | 2:00 am November 9th, 2009

RENO — State senate candidate Todd “Taxpayer” Bailey has introduced an issues campaign called the “The Top 10 In 2010″ in Nevada, launching a new website that explains the agenda and lists candidates who support some or all of the platforms.

“”The Top 10 In 2010″ is an agenda that will make Nevada stronger, right now.  It is something every taxpaying voter can appreciate, even if they do not agree with every single position. In 2010, it’s important to understand where every candidate for every public office stands on the issues that effect all of us,” said Bailey.

“All candidates, regardless of political party, are welcome to endorse all or part of “The Top 10 In 2010.”  It’s about common sense, not party politics. It’s about taking positions that voters can understand and rely on,” he said.

Included in Bailey’s “Top 10″ is a call to end the payroll tax in Nevada.

“In a recent interview with Jon Ralston, even gubernatorial candidate Rory Reid called for an end to the payroll tax.  He said it’s a “bad idea,” and I agree,” said Bailey.

“Getting an opinion on this and other key issues from every legislator and candidate is important,” he said.

Other issues in Bailey’s “Top 10″ include making the SAGE Commission permanent and granting it greater authority, STAR bond equalization reform and constitutional ethics reform centered on applying open meeting laws to the state legislature.

“I will be traveling the state of Nevada for the next 12 months speaking on behalf of those candidates who are ready to tell the voters what they intend to do when elected, and who are ready to put it in writing. Candidates must have a plan they are willing to discuss that goes beyond the usual political slogans,” Bailey said.

A resident of Washoe County and South Reno for over 40 years, Todd “Taxpayer” Bailey is a candidate for Nevada Senate District 4.  He claims he is running Nevada’s most efficient political campaign with contributions of $25 or less.

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Poll: Sandoval Leads Gibbons in GOP Primary But Many Remain Undecided

By Sean Whaley | 6:23 pm November 8th, 2009

(This story was updated at 9:24 a.m. on 11/9/09.)

CARSON CITY – Former federal judge Brian Sandoval has a double-digit lead over Gov. Jim Gibbons in the June GOP primary for governor although a large percentage of voters remain on the fence, a Nevada News & Views poll shows.

The results show Sandoval, a former U.S. District Court judge who stepped down from the bench to run with 36 percent; Gibbons, who has had a rocky three years as governor with 24 percent; and none of these candidates with 33 percent. Former North Las Vegas Mayor Mike Montandon pulled 7 percent, according to the poll conducted by P.M.I. Inc.

The automated poll, conducted Friday and Saturday, generated 4,796 responses from likely Republican voters statewide. A total of 15,761 GOP voters were randomly selected for the poll. The poll has a margin of error of plus or minus 5 percentage points.

“I’m kind of amazed the governor is holding on like he is,” said Jerry Dorchuck, chairman and CEO of P.M.I. Inc. “One day he gets out of bed and has a great day – says something that resonates with conservative Republicans – and he’s back on track. The next day he puts his foot in his mouth.”

But Sandoval appears to be a strong favorite, he said.

“My money is on Sandoval unless something draconian is unearthed,” Dorchuck said. “In a perfect world, (U.S. Sen. John) Ensign would resign and Gibbons could appointment himself Senator and get out of Carson City.”

Mary-Sarah Kinner, a spokeswoman for the Sandoval campaign, called the numbers encouraging.

“But we’re taking nothing for granted,” she said. “We out there and we’re going to keep working.”

Robert Olmer, campaign chairman for Gibbons, also viewed the poll numbers as encouraging for the governor. They are a big improvement over a poll done for the Las Vegas Review-Journal last month, he said. The Review-Journal poll showed Sandoval with 41 percent to 20 percent for Gibbons and 35 percent undecided.

“I think this is very encouraging,” Olmer said. “If you look across party lines and across the country, most incumbents are not faring very well because of the poor economy. So moving this number in such a short time is a very positive result.”

Gibbons is determined to win the primary and the general election, he said.

Montandon said Monday he plans to go after the 33 percent of voters identified in the poll who have not yet made up their minds about a candidate, and “maybe take a few from the others while I’m at it.”

(Updated at 9:24 a.m. with comments from candidate Mike Montandon.)

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Governor Announces Initiative to Eliminate Traditional Landfills in Nevada

By Sean Whaley | 3:46 pm November 6th, 2009
CARSON CITY – Gov. Jim Gibbons today announced his intent to sponsor a major initiative to eliminate traditional landfills, focusing instead on recycling and energy production.

“There have been huge leaps in recycling technology,” Gibbons said. “We can conserve natural resources, create clean energy and create jobs by looking at landfills not as places where we bury our trash, but as places where recycling and energy recovery begin.”

At least 75 percent of the trash now sent to landfills in Nevada can be recycled or used as a renewable energy source using existing technology, he said. Similar results have been attained by the city of San Jose, California. Governor Gibbons recently toured a waste recycling operation there.

“Federal law does not allow us to ban the importation of waste from California,” he said. “But state law allows me to require enough recovery that a waste stream becomes an asset. Mandated waste recovery can be a significant part of diversifying our economy and provide much needed jobs.”

Gibbons said he will push the waste industry in Nevada to adopt recycling and energy recovery technology. He has already invited the presidents of Waste Management in Washoe County and Republic Services in Clark County to join in the effort to make Nevada the best “Resource Recovery State” in the country.

“I expressed to them that I will not let Nevada become the landfill of the west,” Gibbons said. “I am pleased that they understand the need to do a better job of protecting our environment and that they have agreed to work with us for the benefit of Nevada.”

Gibbons said he intends to propose legislation directly targeting the waste industry that will reward superior performance in recycling and energy recovery. He will propose various incentives and abatements to encourage businesses to locate in Nevada and utilize recycled materials. He will also promote low cost financing alternatives to help build waste recovery facilities.

Gibbons became involved in the landfill issue earlier this year after the Humboldt County Planning Commission approved a proposal to ship one million tons of trash a year from California to a new landfill near Winnemucca. The dump would generate an estimated 25 jobs, but some residents have expressed concerns it could be a health hazard.

U.S. Sen. Harry Reid, D-Nev., urged Gibbons in September to do everything possible to stop the proposal from moving forward.

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List of Nominees for Revenue Study Advisory Panel Includes Gaming, Health Care and Labor Interests

By Sean Whaley | 11:53 am November 6th, 2009

CARSON CITY – The list of Nevadans under consideration as members of a “Nevada Vision Stakeholder Group” to participate in a review of the state’s revenue structure has now expanded to 85. A legislative panel will select no more than 19 to serve on the advisory panel when it meets Nov. 16.

The individuals selected by lawmakers to participate will represent areas of expertise from education and public safety to commerce and industry.

Among those being considered for the panel include Reno Mayor Bob Cashell, Joseph Dini Jr. of the Nevada Mining Association, Alan Feldman, an executive with MGM Mirage, and Jan Gilbert of the Progressive Leadership Alliance of Nevada.

Other names include Marsha Irvin of the Andre Agassi College Preparatory Academy, Kathleen Silver of the University Medical Center and Lynn Warne of the Nevada State Education Association.

A complete list is provided here. The initial list had 72 names, but several more were added by an Oct. 30 deadline.

The panel will work closely with Moody’s Analytics, the West Chester, Penn., based firm selected by lawmakers last month to perform the study at a cost of $253,000. The firm has until July 1 next year to complete its review.

The list of nominees has already come in for some criticism.

At a meeting last month, lawmakers who will select the stakeholder group were told the nominees represent the major recipients of government spending, from education and health and human services.

As a result, any study could be compromised by the influence of such a panel, said Geoffrey Lawrence, a fiscal policy analyst with the Nevada Policy Research Institute.

“The group’s recommendations will likely include new government spending proposals,” he said.

The panel should include representatives who support private sector involvement in the provision of public services, Lawrence said.

The revenue study itself has already been criticized as well. Gov. Jim Gibbons voted against funding the review, saying the outcome is already known and will be a recommendation for higher taxes.

Senate Minority Leader Bill Raggio, R-Reno, disagreed that the study has any preconceived agenda. Lawmakers sought the study because of the likelihood that the next state budget will be out of balance by as much as $2.4 billion. This is due in large part to tax increases approved by the 2009 Legislature that will expire in two years, and the likelihood that federal stimulus funds will no longer be available to the state.

Senate Majority Leader Steven Horsford, D-Las Vegas, said the Legislature wants a study so it can use it to consider its options for the 2011 session.

The study is required to be performed by a qualified and independent consultant and will examine the allocation of tax revenues between the state and local governments, the adequacy of revenues and the stability of different tax revenues, among other issues.

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Audit Finds Over $2M in Questionable Purchases and Spending in State Education Department Program

By Sean Whaley | 1:49 pm November 5th, 2009
CARSON CITY – An audit of a $92 million grant program created to improve student achievement in the public schools has identified numerous concerns, from inappropriate purchases to purchases that were made prior to approval by the Nevada Department of Education.

The innovation and prevention of remediation program was created by the 2005 Legislature, and the legislative audit reviewed the first two years of funding in Fiscal Years 2006 and 2007.

The audit, reviewed today by the Legislative Commission’s Audit Subcommittee, found $580,000 in expenditures by schools and school districts that were not authorized by a panel created to review the grant requests. One example was the Clark County School District’s purchase in 2006 of a $200,000 educational software program, a type of purchase specifically not authorized by the review panel, the Commission on Educational Excellence. No payback was sought by the department.

The audit also found $5.1 million in grant funds spent by schools and school districts prior to receiving approval for the expenditures from the commission.

In some cases, items rejected by the commission were amended back into grants by schools and school districts and subsequently received funding.

Schools also did not return unused funds in a timely manner, resulting in $45,000 in lost interest earnings that could have been earned by the Department of Education. Returned money also was not always deposited timely by the Education Department. In one case, the Washoe County School District returned $735,000 in unspent funds in August 2007, but the check was not deposited by the agency until December 2007.

The audit also determined that there was inadequate tracking of purchased items. Auditors could not find 6 percent of the items sought out in the review worth $170,000.

Other issues were also identified in the 47-page audit.

The audit covered the first two years of the program when $81 million of the fund was spent by school districts and schools over two years. The program was continued in the last budget, but no funding was appropriated for the program in the current budget.

Keith Rheault, superintendent of public instruction for the Education Department, acknowledged the many issues cited in the audit. Sixteen recommendations from auditors were accepted by the agency to fix the concerns if funding is provided again in future budgets by the Legislature.

Rheault told the legislative panel many of the problems occurred in the first round of funding due to the rush to get the money to the schools. Many of the concerns were corrected in the 2008 and 2009 funding cycle, he said.

In his official response to the audit, Rheault also noted that no additional staffing was provided to handle the new grant program. A request for additional positions in the 2007 legislative session was not funded.

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New Report Details Budget and Tax Decisions of 2009 Legislature

By Sean Whaley | 4:15 pm November 4th, 2009
CARSON CITY – Taxpayers interested in the budget and tax decisions made by the 2009 Legislature will soon have a new tool at their disposal with the release of the Nevada Legislative Appropriations Report.

The 331-page report provides detail on the two-year spending plan approved earlier this year by lawmakers over the objections of Gov. Jim Gibbons, who vetoed many of the tax and budget bills. It is prepared every two years by the Legislature’s Fiscal Analysis Division.

The report shows the Legislature approved a $6.55 billion general fund budget for the current two fiscal years that began July 1, down from the $7.08 billion budget approved for the prior two years for a 7.5 percent reduction in authorized spending.

The budget for this year, Fiscal Year 2009-2010, is $180 million more in operating funds than recommended by Gibbons. The 2010-2011 budget is $194 million more.

Public education was a winner in the new budget, receiving 39.6 percent of the total compared to 37.1 percent in the 2007-09 budget cycle. Higher education saw its funding drop from 18.6 percent in the previous budget to 15.3 percent in this biennium.

Human services also gained, from 27.2 percent of total general fund spending in the previous budget to 29.4 percent in the new budget. Public safety lost ground, going from 9.4 percent of the total to 8.5 percent.

The totals do not include federal American Recovery and Reinvestment Act funds. A separate section of the report details this source of funding, which is expected to total about $2.2 billion.

On the revenue side, the Legislature approved a package of tax increases that are projected to bring in $780 million over the current two years. The package included increases in the sales and use tax, room tax, modified business tax, governmental services tax and the short-term car rental tax. Most of these tax increases are set to expire on June 30, 2011 unless they are reauthorized by the 2011 Legislature.

Total revenue enhancements approved by the Legislature were $1.3 billion, and included the use of Clark and Washoe county property taxes to supplement the state general fund budget.

Gibbons, at his own request, saw five vacant positions in his office eliminated, leaving a total of 17.5 total positions for the biennium.

Overall, 748 state government positions were eliminated by the Legislature for the current budget compared to the previous budget, not counting higher education. The total state workforce, including higher education, totals 25,779 in this budget compared to the 27,025 positions that were approved in the prior budget.

Gibbons vetoed 48 bills in the 2009 session, the most in the state’s history. The Legislature overrode 25 of the vetoes with a two-thirds vote in each house. The prior record was 38 vetoes in 1865, with 11 overridden by the Legislature. Prior to 2009, the last veto override occurred in 1989.

The report will be available to the public on the Legislature’s website, but not until early next week.

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Gibbons to Present “Gold Star” License Plates to Parents of Two Soldiers Killed in Iraq

By Sean Whaley | 3:43 pm November 4th, 2009

CARSON CITY – Gov. Jim Gibbons on Monday will present the first two Nevada Gold Star license plates to the parents of two soldiers killed in action in Iraq.

Roger Varela, a Fernley resident and founder of the Gold Star Families of Northern Nevada, will be presented license plate 0001. Varela’s son Ray was killed near Baghdad May 19, 2007 when his vehicle was struck by an improvised explosive device (IED).

Sally Wiley, a Gardnerville resident, will receive license plate 0002. Wiley’s son Sean was killed Feb. 15, 2009 near As Salam, Iraq. His vehicle was also struck by an IED.

The Gold Star plate, available statewide as of Nov. 9, was authorized by the 2009 Legislature and signed into law by Gibbons in May. Only immediate families and grandparents of service members killed in the line of duty while on active duty with the Armed Forces of the United States qualify for the plate.

“The memory of those who fought and died for our safety and liberty must be remembered by all freedom-loving Nevadans,” Governor Jim Gibbons said. “I hope family members who display these license plates do so with honor and pride.”

Former state Sen. Joe Heck, a colonel in the U.S. Army Reserves, sponsored Senate Bill 139 that authorized the issuance of the Gold Star license plate. Sen. Dennis Nolan, R-Las Vegas, assumed sponsorship when Heck lost his reelection bid. The bill passed both houses without opposition.

“We recognize and honor the sacrifices made by service members killed in the line of duty, and the Gold Star plate recognizes the ongoing sacrifice family members suffer after losing a loved one,” Heck said. “The license plate is a public way of recognizing and honoring their loss.”

The Gold Star license plate does not raise funds for any organization. The cost for a set is $1 which is the cost to produce the plate. The plate is coded “FV” which stands for “Fallen Veteran.” Details and the application form are available on the DMV’s website under Military and Veterans License Plates.

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