Archive for December, 2009

Legislators Comment on New Report Giving Governor, State Senate Low Grades on Racial Equity Legislation

By Sean Whaley | 8:00 pm December 17th, 2009
CARSON CITY – A first-ever report that says it tracked bills in the 2009 session of the Nevada Legislature having to do with racial equity issues gives the state Assembly high marks and Gov. Jim Gibbons an “F”.

The state Senate didn’t fare much better than Gibbons, getting a D+ for its racial equity votes, according to the report released earlier this week by the Progressive Leadership Alliance of Nevada, or PLAN.

The Assembly, because it passed 10 of 10 racial equity bills, received an A+ in the analysis, which also gives a grade to every individual lawmaker and shows their votes on the Legislation.

The Senate passed six of nine such measures, earning it the low grade.

Gibbons received his F grade for signing only three of the seven racial equity measures that passed both houses of the Legislature. Three of the vetoes were overridden by the Legislature, so six measures actually became law from the 2009 session.

In all, 18 measures were tracked for the report.

Following the release of the report, PLAN members delivered the document to Gibbons’ office.  Gibbons had not been given a copy of the report in advance, although all lawmakers were both mailed and emailed a copy in advance of its release to the public.

Dan Burns, a spokesman for Gibbons, said only: “The governor believes PLAN should take five seconds to tell him everything they know about good, responsive government.”

Senate Majority Leader Steven Horsford, D-Las Vegas, the first black Senate majority leader in Nevada history, received a C- for his voting record on the measures. He could not be reached for comment.

The best grade in the Senate was given to David Parks, D-Las Vegas, who received a B.

Assembly Speaker Barbara Buckley, D-Las Vegas, received an A-.

“Race matters in Nevada,” said Bob Fulkerson, executive director of PLAN. “But as demographics shift, the unprecedented growth in communities of color is not being echoed in the policy decisions of the Governor and state Legislature.

“Disparities in opportunity, access and outcomes between white Nevadans and Nevadans of color are stark – in some cases, among the worst in the nation,” he said.

Lawmakers leveled some criticisms at the report.

Sen. Bob Coffin, D-Las Vegas, who received a D- in the report card, said the PLAN analysis uses a flawed methodology because lawmakers do not know in advance which specific measures will be evaluated after the session is over.

Assemblyman Ed Goedhart, R-Amargosa Valley, said he had different reasons for voting against some of the bills cited in the report card rather than any disagreement over the need for racial and social equality.

Goedhart received an F- in the report despite having voted for the domestic partners legislation. He questioned why the domestic partners bill, which doesn’t deal specifically with racial equity, was included in the report in the first place.

“I appreciate PLAN’s dedication to the mission of racial equality,” he said. “I voted against some of the measures not because I disagree, but because I came at the bills with a different perspective.”

Goedhart said he opposed the bill to reopen F Street in Las Vegas because of the cost, not the access issue cited by PLAN. He said he voted against a bill requiring the licensing of off road vehicles because he viewed it as a new tax and government mandate.

“We had to face the reality of our budget limitations,” he said. “We have to be good stewards of public monies.”

Assemblywoman Sheila Leslie, D-Reno, who received an A-, said she believes the PLAN report has value because it focuses on a single area of concern that is important to the organization, lawmakers and the public at large. Many different groups issue similar report cards on different sets of specific issues, she said.

“On the Assembly side I’m very pleased with the overall grade,” Leslie said. “We take issues of racial equity very seriously.”

The report is just one more tool for lawmakers and the public to use and serves to bring attention to an important issue, she said.

“It is fair to hold us accountable,” Leslie said. “Although I would say they were very tough graders.”

The Nevada Legislative Report Card on Racial Equity evaluated and graded lawmakers and Gibbons on legislation that they claim, if passed, would have a positive impact on communities of color. Only bills that received votes in the full Assembly and Senate were used to compile the grades. Bills that died in committee and did not get a full vote in that house of the Legislature were not counted.

Among the measures becoming law this year were Assembly Bill 243, which requires employers to grant leave to parents to participate in certain school activities, and Assembly Bill 149, which revises provisions on home foreclosures.

Those that failed included Assembly Bill 443, which would have given minority voters more power to elect candidates in their wards in Reno and Sparks. The measure passed the Assembly but did not come out of the Senate Government Affairs Committee. Another was Assembly Bill 190, which would have required a study of issues concerning the death penalty. It passed the Assembly but did not come out of the Senate Legislative Operations and Elections Committee.

Among those that became law despite a veto by Gibbons was Senate Bill 283, which revised provisions regarding the rights of domestic partners, and Assembly Bill 304, relating to the preservation of existing neighborhoods. This measure is related to the closure of F Street in Las Vegas, cutting off a historically black neighborhood from downtown businesses.

To back up their conclusions of growing racial inequality in Nevada, PLAN cited statistics that show 50 percent of minority groups received high interest loans compared to only 30 percent of white borrowers, and that nearly 60 percent of white residents receive employer-sponsored health care, compared to 22 percent for Latinos and 7 percent for black residents.

“They are sincere,” Sen. Coffin said of PLAN. “But we don’t always look at bills in terms of race. Their goal is to make you see things in racial terms, and frankly, I don’t vote that way.”

Coffin, who is half Mexican, did say the report can be of some use because lawmakers can now look back at the bills in the PLAN report and evaluate them on racial equity grounds.

The full report is available at the PLAN website.

Gibbons Invites Lawmakers to Discuss Budget Crisis in Series of ‘Open Door’ Meetings

By Sean Whaley | 4:58 pm December 17th, 2009

CARSON CITY – Gov. Jim Gibbons today said he wants to meet regularly with lawmakers over the next several weeks to discuss the status of the state budget deficit as he continues to evaluate how to balance a spending plan that is short more than $50 million.

“I am concerned that legislators may become alarmed at Nevada’s unprecedented budget challenges,” Gibbons said. “But now is the time to show leadership and be prudent with public funds, so I believe the more discussion we have with legislators, the more opportunities we will have for ideas and understanding.”

Gibbons’ staff has calendared several “open door” meetings where legislators are welcome to come to the office and share their thoughts and ideas.

“The budget issues facing the state will require us all to work together,” Gibbons said. “And I will make sure all legislators have a chance to represent their constituents as we seek solutions to get Nevada working and back on track.”

The first “office hours” are from 10 am to noon on Monday, December 21 and will be scheduled every two weeks through February.

Gibbons has directed his cabinet to come up with several different budget-cutting plans equating to as much as 10 percent for the last four months of this fiscal year and all of fiscal year 2010-11. He has also asked the Economic Forum, a panel of private financial experts, to weigh in on the state tax revenue picture by Jan .19.

He has also emailed all state employees asking for their ideas on how to cut spending.

A special session of the Legislature may be needed to balance the two-year budget early next year.

Nevada Gubernatorial Candidate Rory Reid Challenges Candidates to Endorse or Comment on His Ethics Plan for Nevada

By Sean Whaley | 12:36 pm December 17th, 2009
CARSON CITY – Democratic gubernatorial candidate Rory Reid today released an ambitious plan for ethics reform in Nevada, saying he is offering “common sense” changes to the way state government does business.

Reid is also proposing initiatives to make government more transparent and accountable to the public in his plan, “A Foundation of Trust.”

In an interview this morning, Reid said: “I think we need to build a foundation of trust in Nevada. And if we’re going to attract investment that we need to build a new economy here then people need to believe in our system of government – have faith in it. So this is a high priority, and I think what I’ve suggested is reasonable.”

Among the recommendations are a prohibition on lobbying state agency officials by lawmakers, holding officials accountable for ethical violations whether they are willful or not and imposing a two-year cooling off period before former lawmakers or state employees can represent private interests at the Legislature.

Reid said his reform plan is out there for other candidates to comment on or endorse if they so choose.

“I challenge them to tell me what’s wrong with this plan and then we can talk about it,” he said.

In his plan Reid said of Gov. Jim Gibbons: “The current administration has led Nevada down a shameful path.” Reid said he would bring his leadership on ethics reform begun in Clark County in 2003 while serving on the county commission to the governor’s office.

Reid said in his ethics plan he would require his appointees to meet proven standards of excellence.

“There should be no place in gubernatorial appointments for cronyism,” he said.

In the interview, Reid said he did not have the time to cite specifics but said he believes there have been examples of cronyism in the Gibbons administration.

“I think it is apparent that some of the governor’s appointments have been questionable,” he said. “And that people that might not have been the most able got jobs in the administration that maybe they shouldn’t have. I think that that type of behavior erodes public confidence as quick as anything and I think that I will assemble an administration based on merit.”

Asked for a response, Gibbons said: “I put people on boards and commissions who will help Nevada citizens. Given his track record and his family background, Commissioner Reid should tread carefully when talking about ‘cronyism’.”

Reid is the son of U.S. Senate Majority Leader Harry Reid, D-Nev.

Gibbons also said: “Commissioner Reid is merely trying to distance himself from the shattered families and disastrous problems he has created in Clark County. Commissioner Reid is ignoring the needs of working families in Clark County while he makes uninformed and false statements about state government. He should tend to his responsibilities and serve the people, not serve salacious gossip about matters he knows nothing about.”

Reid , who was accompanied by Dick Morgan, former dean of the Boyd School of Law at UNLV, said he worked to “raise the bar” for transparency in Clark County with Morgan’s assistance, focusing on disclosure and abstention when necessary.

“I think that Clark County government is more transparent than it has ever been,” Reid said.

Morgan said one clear change was to prohibit former commissioners and senior county employees from immediately going into the business of lobbying the commission.

Reid said he is not familiar with what would be involved in making state government budgets, expenditures and contracts totally transparent on a searchable database. Nor is he proposing any changes right now to the way candidate campaign contribution and expense reports are available for public review.

“We need to start with building a foundation, so this is an attempt to ensure that Nevada’s process is open and transparent and that we close the loopholes that exist so people can have trust in what we do,” he said. “So we can attract the investment that we need to build the economy. I think I’m starting in the right place.”

This is not to say there isn’t more that can and should be done, Reid said.

The recent action by the Nevada Ethics Commission to find Las Vegas City Councilman Steve Ross guilty of three ethics violations was coincidental in the timing of the release of his plan, Reid said.

The Ethics Commission on Friday found no willful violation in the Ross matter, which involved votes for a new city hall that could benefit his employer, the Southern Nevada Building and Construction Trades Council, so no penalties were imposed.

This practice would end under Reid’s plan.

In his plan, Reid said: “There will be no further room for the ‘non-willful’ distinction. I will move to have that loophole removed from law so that all government officials and employees will be liable for all misconduct.”

Other elements of the plan include:

- Increase transparency at every level, starting with the executive branch. As governor, Reid said he would release his official schedule to the public and hold regular press conferences. He would also hold periodic town hall meetings broadcast statewide and require department heads to do the same.

- Reduce conflicts of interest by requiring all appointees to sign a code of responsibility and disclose any instance where there is a potential for even the appearance of a conflict of interest. Appointees would be required to make appropriate recusals in any questionable situation.

- Establish an open meeting law for the Legislature that allows the body to conduct its business expeditiously, given the limits of a 120-day legislative session, but places a premium on openness and transparency.

Gibbons Administration Says Nevada Too Late for First Round of Federal School Improvement Funds

By Sean Whaley | 10:21 am December 17th, 2009

CARSON CITY – A Gibbons administration official said today the deadline to submit a letter of intent to seek federal funds to improve student performance in the first phase of a competitive grant program has already passed.

Stacy Woodbury, deputy chief of staff to Jim Gibbons, said the U.S. Department of Education informed her on Friday that 34 states had already submitted letters of intent to seek a share of the “Race to the Top” funds in Phase I and that the deadline to submit such letters of intent had passed.

Woodbury, in testimony to the Legislative Committee on Education, said Gibbons also disagrees with the suggestion made last week by state Sen. Majority Leader Steven Horsford, D-Las Vegas, that Nevada should try to apply in the first of two phases for the funds.

Horsford expressed concern that not applying for the funds immediately could lead to a lost opportunity for Nevada students.

Gibbons agrees with other lawmakers that Nevada should take the time to write the best application possible for funding in Phase 2 due by June, Woodbury said.

“Nevada is not ready for Phase I,” Woodbury said. “Phase II presents the best opportunity for Nevada to make a comprehensive, thoughtful, quality application for the Race to the Top program.”

There is no loss of funding at stake for Nevada if it misses the first round. States can apply in the first round or the second, but they cannot get funding in both rounds.

Nevada potentially could be eligible for $175 million in the one-time federal funds to help students improve, but a current state law prohibiting the use of student performance measures to evaluate teachers precludes the state from eligibility.

Gibbons has said he will call a special session by June to repeal the law, approved in a special session of the Legislature in 2003, so Nevada can apply for the funds in Phase II.

Woodbury said Gibbons is in agreement with lawmakers and others that student test scores should not be the only criterion used for teacher evaluations.

Unemployment Rate Drops in November Due to Smaller Labor Force

By Sean Whaley | 8:31 am December 17th, 2009
CARSON CITY – Nevada’s unemployment rate fell for the second consecutive month in November, declining six-tenths of a percentage point to a seasonally adjusted 12.3 percent, but the drop was attributed to a decline in the state labor force.

The decline from a revised 12.9 percent unemployment rate in October was reported today by the Nevada Department of Employment, Training and Rehabilitation. An estimated 161,400 Nevadans were actively searching for work in November.

“On the surface, the decline in the rate is a positive sign, indicating the recession is beginning to subside,” said Bill Anderson, chief economist for the agency. “Unfortunately, a more detailed review of the components of the unemployment rate reveals a troubling trend. Primary amongst them is the decline of the state’s labor force.”

Nevada’s labor force contracted for the second month in a row in November, falling by 1.5 percent, meaning roughly 13,900 workers either left the state or were too discouraged to seek employment, he said.

The labor force deteriorated in both of the state’s major metropolitan areas, causing the unemployment rate to decline significantly. In the Las Vegas area, the rate declined nine-tenths of a point, to 12.1 percent, marking the largest one month drop on record going back to 1990.

A similar drop occurred in the Reno-Sparks area, where the jobless rate fell from 12.2 to 11.3 percent. Carson City’s unemployment rate declined six-tenths of a percent to 11.2 percent.

Unemployment rates for the state’s metropolitan areas are not adjusted for seasonality. For comparison purposes, the state’s unadjusted unemployment rate was 11.8 percent in November.

Some of Nevada’s rural economies continue to enjoy the benefits of a robust gold market.

Gold prices recently topped $1,200 per ounce, Anderson said.

“All of this bodes well for the mining region’s labor market,” he said. “The unemployment rate is already considerably lower than the state as a whole.“

In the Elko metropolitan area, which includes Elko and Eureka counties, the unemployment rate is just 5.9 percent, nearly 6 points lower than the statewide average.

“Nevada’s mining industry will continue to thrive as long as the current economic situation persists,” Anderson said.

Following a one month reprieve, employment in both the private and public sectors of the state continued to fall, losing 9,200 jobs in November. Despite the partial opening of City Center in Las Vegas, prolonged weakness in the leisure and hospitality industry resulted in the industry losing another 5,700 jobs statewide.

Public sector employers shed 2,100 jobs, perhaps due to ongoing budget woes, he said.

Former Nevada Lawmaker John “Jack” Vergiels Dies After Long Illness

By Sean Whaley | 4:30 pm December 16th, 2009
CARSON CITY – Former speaker of the Assembly and majority leader of the Senate, John M. “Jack” Vergiels, passed away today after a long bout with illness at the age of 72. The Democratic lawmaker served in the Assembly from 1973-1984, and as speaker in 1983, then served in the Senate from 1985-1992, and as majority leader in 1991.

Assembly Republicans Taking Voluntary Pay Cuts Equal to State Employee Salary Reductions

By Sean Whaley | 3:46 pm December 16th, 2009

CARSON CITY – Republican members of the state Assembly said today they are following through on a commitment made in January to take salary reductions equal to the pay cuts imposed on state employees as a result of the 2009 legislative session.

Assemblywoman Heidi Gansert, R-Reno, who also serves as the Assembly minority leader, said checks equaling a 4.6 percent reduction in pay for each Republican member of the Assembly will be sent to the state every six months. Since lawmakers are not in session, pay is received only for attending interim legislative meetings, and it made more sense to cut a check twice a year rather than on a more frequent basis, she said.

Suggestions in news reports earlier this month that lawmakers were not sharing in the pain of pay cuts is not the case for Assembly Republicans, Gansert said.

“We pledged early on to take any pay cuts state employees had to take,” she said. “It has just been an accounting issue for us.”

Checks were being sent today by Assembly Republicans to the state general fund.

“We believe it is important for elected leaders to match the sacrifices being asked of others,” Gansert said. “We shouldn’t ask anything of state personnel that we are not willing to accept for ourselves.”

Assemblyman Tom Grady, R-Yerington, agreed, saying: “We are all in this together. State government must make painful cuts during these times and we all need to do our part to share the sacrifice.”

The 2009 Legislature approved a one-day-a-month furlough plan for most state workers as a way to help balance the budget. The unpaid day off equates to a 4.6 percent pay cut that began July 1.

Lawmakers get paid for the first 60 days of each legislative session held in odd-numbered years, but are paid only for attending sporadic meetings in the interim. The current pay for attending a legislative meeting is $146.29.

Some lawmakers are on more interim committees and attend more meetings than others.

The Reno Gazette-Journal reported Dec. 16 that only one lawmaker, Assemblyman Ed Goedhart, R-Amargosa Valley, had taken a pay cut and returned $526.65 to the state.

But Gansert said all 14 Assembly Republicans are committed to taking the pay cuts as well.

Heller Objects to Debt Limit Increase on House Floor, Bill Narrowly Passes

By Nevada News Bureau Staff | 3:43 pm December 16th, 2009

(Washington, DC) – Congressman Dean Heller today led the opposition on increasing the national statutory debt limit by nearly $300 billion (H.R. 4314).

“Here we are again. Christmas is a week away and Congress is scrambling at the last minute just so we can go home,” said Heller.

“While Americans are doing last minute holiday shopping, the majority party is doing its last minute spending. This year many families are cutting back their holiday shopping. Average holiday spending by Americans has dropped to $343 dollars per person from $372 dollars a year ago. You would think that during these tough times when most Americans are forced to tighten their belts, that Congress would also. Not a chance under this majority,” he said.

“This majority stumbled into 2009 with a budget that raised the deficit by $1.8 trillion. Then Congress decided to pass an $800 billion stimulus bill, $3 billion on Cash for Clunkers, a trillion dollars on a Cap and Tax bill, $1.3 trillion on the Democrat health care bill and recently another $447 billion was spent on Washington D.C. bureaucracies,” Heller said.

“After all this spending, the national debt is now more than $12 trillion dollars. Every American citizen will now owe more than $39,000 to pay for Washington’s spending. Now Democrats want to raise the debt limit to allow even more spending in 2010. The real “fat cat” is the federal government which spends, spends, and spends while the American public gets stuck with the bill, he said.

“I urge my colleagues to reject raising the debt limit and give the gift that American deserves…a responsible federal budget, he said.

Reuters reported that the debt limit increase narrowly passed the House by a vote of 218-214.  The Senate will vote on the bill by the end of the month.

Heller’s speech can also be seen at heller.house.gov or on YouTube.

Lt. Gov. Brian Krolicki Will Seek Reelection in 2010, Continues to Question Failed Prosecution by Attorney General

By Sean Whaley | 1:47 pm December 16th, 2009
CARSON CITY – Lt. Gov. Brian Krolicki, cleared earlier this month on charges that he mismanaged a college savings program while serving as state treasurer, said today he plans to run for reelection as lieutenant governor next year.

“It is absolutely my intention to run for reelection as lieutenant governor,” he said.

Krolicki announced his intentions during an interview on the Nevada NewsMakers television program.

During the interview, Krolicki said he will continue to press for an explanation from Attorney General Catherine Cortez-Masto on why she sought to prosecute him criminally in a case that he said never should have been pursued to begin with.

Krolicki said defending himself against what he called politically motivated charges over the past year has cost him “hundreds of thousands of dollars.”

Masto spokeswoman Edie Cartwright said she did not see the program and did not anticipate that there would be any comment from the attorney general’s office.

Krolicki was accused of violating the state budget act by misusing $6 million of a $3 billion college savings plan, but this issue was not even mentioned in the indictment, according to a ruling dismissing the four felony counts against him issued by a Clark County District Court judge earlier this month.

Masto then announced she would not appeal the ruling or seek a new indictment even though she believes Krolicki was guilty of criminal wrongdoing, citing limited resources in her office.

In the interview, Krolicki said the attorney general’s office was responsible for reviewing and approving the contracts that specified how the college savings funds were to be used. The attorney general also sits on the Board of Examiners and voted to approve the contracts, he said.

“We heeded their advice from the very beginning,” Krolicki said. “For the attorney general to turn around after negotiating and approving these contracts and say, ‘Oh, I don’t like that’ – how does a lawyer prosecute their own client for heeding their advice? That’s the one thing that I will never understand in all of this.”

Krolicki said that is why the case was dismissed for the first time earlier this year – because the attorney general‘s office was determined by a judge to be an “aider and abettor” in the way the funds were used as specified in the legal contracts.

The lesson should have been learned then and the case should not have been pursued at that time, he said.

Krolicki said Masto is more fortunate than he is with the ruling by the judge to dismiss the charges.

The facts that would have come out at trial would have, “embarrassed her so greatly that I think she got a great Christmas present, too, because now some of these just incredibly damaging things to the prosecution will not be known fully,” he said.

Krolicki said three of the top 10 college savings programs nationwide are in Nevada. They were created without taxpayer dollars and are helping over half a million families pay for college.

“We made a profit doing it, and it was balanced to the penny,” he said. “I’m proud of that. I don’t know what else to say.”

Gibbons Seeks Input from State Employees on Ways to Balance Budget

By Sean Whaley | 5:30 pm December 15th, 2009
CARSON CITY – Gov. Jim Gibbons today asked state employees to weigh in on ways to balance the budget after sending a memo to top agency officials seeking even tougher budget cutting scenarios than those outlined earlier this month.

In the email to state employees, one question posed to state workers by Gibbons reads: “I have pledged to not raise taxes. Should Nevada impose a fee on raw municipal waste to promote recycling, create green jobs and renewable energy, and make Nevada less attractive to those states proposing to send us their waste?”

Gibbons also asks for comment on several other ideas:

  • Are there any budgets that should not be considered for reduction? Why?
  • If we must reduce personnel costs, how should that be done? A percentage pay decrease? Layoffs? More furlough days?
  • Utah has tried a 4/10 work week with good results. Should we consider the same?
  • Are there any state services that should be discontinued or privatized? Why?
  • Is there something we should spend more money on because it would make or save money?
  • What is the biggest waste of money that you see too often?
  • Would you support eliminating full day kindergarten or increasing class sizes to save money?
  • An employed person generates more total state revenue than does the payroll tax collected on each employee. Should we eliminate payroll taxes on new hires to stimulate employment?

In his email, Gibbons said: “We are faced with making some tough decisions very soon. As my co-workers and the people on the ‘front line’ for maintaining essential services, I value your opinions regarding how the state should handle our financial situation.”

The email was sent after state Budget Director Andrew Clinger sent a memo earlier today asking state agencies to, “determine proposed budget reserves in the amount of 6 percent, 8 percent and 10 percent for FY 2010 and FY 2011 and submit them to the Budget Office by the close of business on Tuesday, January 5, 2010.”

Gibbons has already asked for budget cutting scenarios of 1.4 percent and 3 percent from his agency chiefs. Those plans are due today and are being sought because general fund tax revenues so far this year are $53 million below estimates.

In addition, the state Medicaid budget is expected to see a deficit of $55 million by the end of the two-year budget on June 30, 2011, due to unexpected caseload growth.

Gibbons Seeks Bigger Budget Cutting Scenarios from State Agencies, Senator Coffin Says Premature

By Sean Whaley | 2:11 pm December 15th, 2009
CARSON CITY – In a sign that the Gibbons administration is concerned Nevada’s fiscal crisis may worsen further before it gets better, a memo to state agency officials sent out today seeks even tougher budget cutting scenarios than those outlined earlier this month.

The memo from state Budget Director Andrew Clinger asks state agencies to, “determine proposed budget reserves in the amount of 6 percent, 8 percent and 10 percent for FY 2010 and FY 2011 and submit them to the Budget Office by the close of business on Tuesday, January 5, 2010.”

Gov. Jim Gibbons has already asked for budget cutting scenarios of 1.4 percent and 3 percent from his agency chiefs. Those plans are due today and are being sought because general fund tax revenues so far this year are $53 million below estimates.

In addition, the state Medicaid budget is expected to see a deficit of $55 million by the end of the two-year budget on June 30, 2011, due to unexpected caseload growth.

Ben Kieckhefer, a spokesman for Department of Health and Human Services Director Mike Willden, said the agency will provide Gibbons with the requested budget reduction plans, but that, “we’re not talking about any easy scenarios.”

As an example, a 10 percent cut in fiscal year 2011 for the agency would equate to just over $102 million, or nearly the equivalent of the entire general fund budget of both the Health Division and the Welfare Division, he said.

The agency will follow protocol and submit the requests by the deadline. The information will remain confidential until the governor decides what to do with it, he said.

“We’re talking entirely new levels of cutting,” Kieckhefer said.

Gibbons is analyzing both tax revenues and expenditures to determine what cuts may required to balance the state budget. He is also evaluating whether a special session of the Legislature will be required to implement any cuts. He also wants input from the Economic Forum, a panel of private fiscal experts, to weigh in on the future of the state’s budget revenues.

Sen. Bob Coffin, D-Las Vegas, a member of the Senate Finance Committee, called the request for such levels of budget cuts premature.

“We don’t have any projections,” he said. “Has the Economic Forum met yet? I would want the results before I ask for a remedy because I don’t know how sick I am.”

The new budget cutting scenarios being sought by Clinger assume an effective date of March 1 for the current fiscal year.

“At this time no decision has been made as to whether these budget reserve recommendations will be implemented, however this information will be considered in the decision making process for closing the current projected deficit,” Clinger said.

Reid Secures $100 Million for Nevada Projects, GOP Opponent Criticizes Earmarks

By Sean Whaley | 9:44 am December 14th, 2009

U.S. Sen. Majority Leader Harry Reid has announced he has secured nearly $100 million for projects in Nevada through the passage of the Transportation Omnibus Appropriations Act.

The omnibus bill combines several appropriations bills, including Housing and Urban Development, Commerce, Labor, and Health and Human Services. The measure passed the Senate on Sunday.

“This is an important bill for Nevada because it delivers much-needed funding to the state for projects that will strengthen our communities and create jobs,” said Reid, D-Nev. “Every bill that is passed, every project that is funded and every job that is created helps Nevada take another step forward on the road of economic recovery.”

From funding for law enforcement equipment and military personnel to public health initiatives, this bill makes strong investments in Nevada communities, Reid said.

The $97.5 million in appropriations is a way to supplement state and local funding and bring home Nevadan’s hard earned tax dollars for deserving projects that create jobs, provide services, and improve the quality of life for all Nevadans, he said.

But Reid came in for some criticism from Las Vegas businesswoman Sue Lowden, one of several candidates in a crowded Republican field seeking to challenge him in his reelection bid next year, for passing the omnibus bill.

The $1.1 trillion bill included numerous earmarks despite promises of earmark reform, she said in a statement.

“Sen. Reid’s earmark-filled spending bill this year represents a 10 percent increase over last year’s spending levels,” Lowden said. “This, while Nevada’s unemployment has increased by nearly 40 percent since Harry Reid spent our tax dollars on a nearly trillion-dollar ‘stimulus’ bill earlier this year.”

Reid said the Nevada funds will go to projects all around the state, from Elko to Boulder City.

Nearly $55 million of the total will go to military construction, including $10.8 million to replace a Nevada Air National Guard fire station in Reno and $10.7 million for a combined gymnasium and fitness center at the Fallon Naval Air Station. Another $26 million will go to the construction of a North Las Vegas Readiness Center for the Nevada Army National Guard.

Just over $20 million will go to Nevada transportation, housing and urban development projects, including nearly $3 million for the construction of an interchange at U.S. Interstate 15 and Starr Road in Henderson, and $2.2 million to make improvements to State Route 160 between Las Vegas and Pahrump. Another $682,000 will be used to build an affordable senior assisted living center in Las Vegas.

Labor and health and human services projects will receive almost $13.1 million, including $800,000 for a diabetes center at the University of Nevada School of Medicine in Reno, and $900,000 for the Nevada State College Nursing Program.

Commerce, justice and science projects total $8.5 million, including $1 million to the Washoe County Sheriff’s Office for a heavy duty command post and patrol safety system, and $1 million to the Las Vegas Metropolitan Police Department for a justice information sharing program to replace a 40-year-old database.

Las Vegas City Councilman Steve Ross Found to Have Violated State Ethics Laws

By Sean Whaley | 3:45 pm December 11th, 2009

CARSON CITY – Las Vegas City Councilman Steve Ross was found today to have violated state ethics laws for failing to disclose his labor union interests and abstain from voting for a new city hall project at two different meetings in December 2008 and February 2009.

But Ross was not found to have made willful violations of state law by failing to disclose his conflict at a December 2008 city council meeting and for his votes for the project at the December 2008 and February 2009 council meetings because he relied on the advice of City Attorney Brad Jerbic.

No ethics violations were found for a November 2008 failure to disclose and vote Ross made on the project.

Ross began abstaining on the project after the February 2009 vote.

If the violations had been found to be willful, Ross faced as much as $40,000 in fines and the potential for removal from office.

The 4-1 Ethics Commission votes for the three violations came because of a finding that Ross had a conflict because the union group he works for as secretary-treasurer, the Southern Nevada Building and Construction Trades Council, was negotiating with the developer of the proposed project.

There was some conflicting testimony over the course of the two-day hearing as to when the construction union consortium actually entered into negotiations with the developer for the project.

Ethics Commission member Mark Hutchison made the motions to find the violations, but first said to Ross: “I think you are an honest and upright and honorable public servant.”

By not finding willful violations, the votes by the commission will serve as guidance to Ross at future council meetings.

Commissioner Erik Beyer told Ross, “disclose, disclose, disclose.”

State Senate Majority Leader Urges Nevada Officials To Immediately Seek Federal Funds to Improve Nevada Schools

By Sean Whaley | 1:18 pm December 11th, 2009

CARSON CITY – State Sen. Majority Leader Steven Horsford, D-Las Vegas, urged a legislative panel today to push Nevada to apply in the first round of federal Race to the Top funds to improve student performance by a Jan. 19, 2010 deadline.

Even if the state is not successful in getting a competitive grant in the first round, there would be a critique of the state’s application that would assist in improving the document to win funding in the second round in June, he said.

“Those funds would help us move our state forward with much needed improvements in our K-12 education system, enhancing our children’s skills in critical fields such as science and mathematics, as well as offering more help to schools that are struggling to meet academic standards,” Horsford said. “Race to the Top also can help us buffer our education system from the effects of a protracted recession.”

Horsford made his comments to the Legislative Committee on Education, which met to get a briefing on the state’s efforts to win federal funding that could total as much as $175 million in one-time funds.

Some members of the legislative panel disagreed with Horsford, however, suggesting that waiting to apply in the second round would give the state the time to produce a better and more competitive application.

Horsford acknowledged that a one-day special legislative session would be needed to repeal a state law that now prohibits Nevada from applying for the federal funding and that only Gov. Jim Gibbons can call lawmakers to the capital.

Keith Rheault, state superintendent of public instruction, said it would be difficult for the state Department of Education and the state’s 17 school districts to prepare a competitive grant application by the January deadline.

There is no loss of funding at stake for Nevada if it misses the first round. States can apply in the first round or the second, but they cannot get funding in both rounds.

Horsford said the Legislative Committee on Education should also come up with language agreeable to all interest groups to change the Nevada law that now precludes the state from applying for the funds.

A 2003 law passed by the Nevada Legislature precludes the use of student achievement data in rating the performance of teachers which makes the state ineligible to apply for the federal Race to the Top funds.

Gibbons has said he will call a special session by June to seek repeal of the law so the state can apply for Round 2 funding.

The Nevada State Education Association has proposed an alternative that the association says would make the state eligible for the funding. The proposal would subject teacher evaluations to mandatory local collective bargaining discussions.

Joyce Haldeman, representing the Clark County School District, said the best option is to repeal the 15 words now in state law that bars the state from using student achievement to evaluate teachers. Any other alternative could put the state’s efforts to get a share of the funds at risk, she said.

Rheault said he agrees with U.S. Secretary of Education Arne Duncan that the teachers’ union proposal is “not optimal” for the state to receive funding.

Lt. Gov. Brian Krolicki “Heartened” By End to Year-Long Legal Ordeal With Attorney General

By Sean Whaley | 6:03 pm December 10th, 2009
(Updated at 9:16 a.m. on Dec. 11.)
 
CARSON CITY – Nevada Lt. Gov. Brian Krolicki said today he is heartened that a year-long legal ordeal involving criminal allegations he mismanaged a college savings program while serving as state treasurer is finally over.

“The attorney general’s announcement today was a long time in coming,” he said. “I’m certainly heartened that his ordeal, an absurd one at that, is now ended. We are going to savor these holidays and we are going to move on with our lives.”

Attorney General Catherine Cortez Masto said today she will not seek a new indictment, nor will she appeal a Clark County District Court decision dismissing the four felony charges against Krolicki for the alleged mismanagement of the program.

New charges against Kathryn Besser, who was Krolicki’s chief-of staff as treasurer, will not be pursued either. Besser now serves as Krolicki’s chief-of-staff in the lieutenant governor’s office.

Krolicki said he hopes inquiries are made with the attorney general’s office, “to account for this fiasco.”

“The power of a prosecutor is profound and there needs to be accountability,” he said.

Masto’s prosecution was rejected by two separate judges, and Krolicki said she had no facts to support her office’s ongoing actions.

“I hope she would apologize to Kathy Besser, who is an extraordinary public servant, and to my family,” Krolicki said.

Masto’s decision brings a close to the case against Krolicki and Besser, who were indicted in December 2008 following a 2007 audit of the $3 billion, college savings program run by the treasurer‘s office. No state funds were missing but Krolicki was accused of not following state budgeting rules.

The attorney general’s office failed to return repeated telephone calls seeking comment on the matter.

Krolicki, who is expected to run for re-election as lieutenant governor, said all along the charges were politically motivated. Krolicki is a Republican and Masto is a Democrat.

A trial on the charges was set to begin Dec. 14, but on Monday Clark County District Judge Valerie Adair dismissed the indictment.