Gov. Jim Gibbons isn't backing off on his executive order rejecting any legislative say in spending the stimulus money.
Chief of Staff Robin Reedy said Monday that if Controller Kim Wallin refuses to process work programs to spend the American Recovery and Reinvestment Act money without legislative approval, "It ends up being a Mexican standoff."
Wallin said Friday she has an attorney general's opinion that she can't process work programs over $50,000 or 10 percent of the specific agency's budget without IFC approval. That requirement is in the Nevada Budget Act, NRS353.
Reedy said if that's Wallin's position, "there's always the nuclear option."
Asked what that means, she said: "What everybody's been talking about - looking at the constitutionality of IFC."
Wallin said the AG's opinion issued when the budget crunch started 18 months ago says legislative approval is required. Reedy said that same opinion allows the controller's office to process ARRA work programs without legislative approval to prevent the potential loss of life or property.
"I can't sit there and force Kim Wallin to hit the button, but I think we have a legal basis," Reedy said. "It's the loss of future money, of property. We cannot delay."
Deputy Chief of Staff Lynn Hettrick Friday described the law requiring IFC approval as "a technicality."
The constitutionality issue was raised Friday by Senate Minority Leader Bill Raggio, R-Reno, who said the two sides need to sit down and work things out without litigation.
"Understand, there has always been a question about the constitutional authority and legality of the Interim Finance Committee," said Raggio.
Setting up the first actual challenge, the governor's office Friday rejected a quiet compromise offered by lawmakers over the release of $10.7 million in weatherization funding provided by ARRA. Lawmakers had advised Reedy's staff they wouldn't object to the governor declaring that work program requires expeditious action. Under that scenario, the program is approved in 15 days unless lawmakers object.
The governor's office ignored the offer and sent notice to the Legislative Counsel Bureau Friday that the administration will move forward on spending the $10.7 million without seeking IFC approval.
Reedy said she is also moving forward on staffing the ARRA coordinator's office in the governor's office. She said one veteran state employee has agreed to take the executive assistant position and that, if the governor approves, she could hire the coordinator today. If the federal government approves, those salaries would be paid with ARRA money. But state law requires that too be approved by IFC.
Wallin was unavailable Monday but a senior staff member said she planned to again talk with the attorney general's office for advice on the issue. The governor's office did not seek advice from legal counsel before issuing the executive order Friday morning.
Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.
