Gibbons names stimulus director

Gov. Jim Gibbons isn't backing off on his executive order reclaiming control of stimulus spending and rejecting any legislative say in it.

On Tuesday, he named Charles Harvey, assistant Clark County recorder, to manage Nevada's

$2.2 billion in funds from the American Recovery and Reinvestment Act.

Gibbons said with Harvey's experience in business and government, he will have an immediate positive impact.

The governor also sent a letter to Controller Kim Wallin saying the first two ARRA work programs sent to her should be processed because the state budget act permits the governor to declare ARRA work programs emergency action items and approve them without legislative concurrence.

Deputy Chiefs of Staff Lynn Hettrick and Stacy Woodbury both said they had run that letter by the attorney general's office and received the OK to send it.

Woodbury, however, confirmed that Assistant Attorney General Jim Spencer didn't say the situation constitutes an emergency under the law. She said the governor makes that determination himself, and that Spencer simply advised that in an emergency situation, NRS353 can be used to exempt a work program from legislative review.

Chief of Staff Robin Reedy said if Wallin refuses to process work programs to spend stimulus money without legislative approval, "It ends up being a Mexican standoff."

Wallin said Friday she has an attorney general's opinion that says she can't process work programs over $50,000 or 10 percent of the specific agency's budget without legislative Interim Finance Committee approval.

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."

Wallin was out of town and unavailable for comment Tuesday.

Hettrick 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.

If the federal government approves, salaries for the two ARRA staffers would be paid with ARRA money. But state law requires that too be approved by IFC and the federal approval process is expected to take up to 60 days. Until that approval comes, Reedy said the office's existing budget will have to support the positions.