Gibbons takes control of stimulus money

Gov. Jim Gibbons Friday announced he is taking control of the stimulus money, creating a director to manage it. Gibbons said he doesn't need and will not ask the Legislature's authorization to spend any of the money because the state constitution leaves it to the governor to run the state and the American Recovery and Reinvestment Act puts the governor, not lawmakers, in charge of the money.

"The money does not go through the Legislature," he said at a press conference in Sparks.

Nevada isexpected to receive in excess of $2.2 billion in ARRA money.

Gibbons also said the ARRA Director would be paid for out of the ARRA money itself and that he has the power to create a new position and use that money to fund it without approval from the Legislative Interim Finance Committee.

His executive order flies in the face of long-standing law requiring legislative approval to spend any money. According to Legislative Counsel Bureau Director Lorne Malkiewich, the state budget act in NRS353 requires legislative approval to receive and spend any federal money.

He said it's his understanding that ARRA puts the governor in control of the money, "unless otherwise provided by state law and our state law requires it go through the state budget act."

The move is the latest in the running battle over ARRA reporting requirements. Gibbons originally proposed spending some $230,000 in state money to set up an ARRA coordinator and executive assistant to handle reporting. The Legislative Interim Finance Committee balked at that and, instead, put the positions and the program under Controller Kim Wallin.

"There is no authorization for the controller to give directions to any executive branch agency," said Gibbons Friday. "Whether their action is legal at all is another question."

He said his ARRA Director will manage the receipt and distribution of the money but that the information will then go to the controller who can report to the federal government.

Asked whether they had gotten a legal opinion saying the executive order was legal and constitutional, Gibbons and Chief of Staff Robin Reedy danced around a clear answer saying the proposal had been submitted to the attorney general's office. They did not say they had received legal advice that the order was legal or constitutional.