Controller approves stimulus programs

Citing an attorney general's opinion, Controller Kim Wallin has processed nine of the 10 stimulus programs the governor sent over as emergency items.

Emergency status means those programs don't require approval from the Legislative Interim Finance Committee.

The 10th, she said, will go before the Interim Finance Committee because it requires a public hearing.

But at least two of those programs may be modified significantly by the governor's office.

The Energy Office originally requested 10 new positions at a cost of $3.47 million - 10 percent of the total energy grant under the American Recovery and Reinvestment Act. That was reduced to just three positions after consultation with budget director Andrew Clinger and the Legislative Council Bureau's fiscal division.

Deputy Chief of Staff Stacy Woodbury confirmed Tuesday the governor's office is increasing that program back to the original 10 positions requested by director Hatice Gecol. Woodbury said the positions will be reviewed to determine whether all of them are necessary.

In addition, she said they are considering adding a grant writer to the staff in the ARRA director's office.

"A lot of the smaller agencies felt with the remaining pots of money on the table they needed some help," she said. "We haven't made a formal decision."

The ARRA director, Charles Harvey, and an administrative assistant have already been hired.

With the two positions approved in the controller's office to handle reporting of all ARRA expenditures, that would bring the total number of employees handling the stimulus programs to five.

After the IFC balked at creating an ARRA director in his office, Gov. Jim Gibbons issued an executive order taking control of the stimulus money and advised Wallin he was declaring those programs exempt from legislative review as emergency items.

Wallin originally refused to process the programs - effectively preventing expenditure of the money - saying IFC needed to sign off on the spending;. She also questioned whether the two programs qualify for emergency status.

But the opinion issued Monday by Attorney General Catherine Cortez Masto says the way that law is written, an emergency is whatever the governor says it is and Wallin should process the work programs.

Funding of $257,709 to for staff to oversee the $2.2 billion in stimulus cash as it arrives in Nevada and the release of $10.46 million in weatherization money were both approved on a party line vote by IFC Monday morning. Republicans opposed that vote saying it's under the governor's power.

If the grants writer is added to the ARRA director's staff, the cost of that program would increase to about $340,000.

The battle started two weeks ago when, at Senate Majority Leader Steven Horsford's insistence, IFC put the stimulus coordinator under the controller and held back the weatherization money to give union contractors time to qualify for some of that work.

Senate Minority Leader Bill Raggio, R-Reno, said Monday IFC overstepped its bounds when it did so.

"I believe the committee acted inappropriately in not passing the motion to place it under the governor's office. I'm sorry to say it went down strictly on a partisan vote," he said.

"My hope is we don't have these confrontations going forward," said Assembly Minority Leader Heidi Gansert. She was joined by Senate Finance Chairman Bernice Mathews, D-Sparks.

"We are here because cooler heads have not prevailed on both sides," said Mathews.

She added that, "this is the first time in 16 years I've been here we've had this where parties are not talking to each other but through the media."

Woodbury said Tuesday the disputes are over as far as the governor's office is concerned and that the different agencies involved are working together to get as much stimulus money as possible and spend it for the benefit of Nevadans.

The governor's office still faces one major challenge in funding the ARRA director and executive assistant's positions. They need federal approval to spend part of the ARRA money for administrative expenses.