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'STIMULUS CZAR' DISPUTE: Governor targets finance panel

Gibbons raises claims that it has no right to exist

The old fighter pilot can still spot a vulnerable target.

For two weeks, Gov. Jim Gibbons has attacked the Nevada Legislature's Interim Finance Committee, a group he says meets in violation of the state's constitution.


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  • That had Gibbons, a decorated Air Force veteran who flew combat missions in Vietnam, throwing bombs at a sensitive subject in Carson City.

    The governor used his bully pulpit earlier this month to amplify claims that the 40-year-old committee doesn't even have a right to exist.

    If the argument were to gain steam, it could force state government to rewrite the way it does business.

    Gibbons has already got the attention of longtime Interim Finance Committee member state Sen. Bill Raggio, R-Reno, who said his colleagues should make nice with the governor in part to preserve the status quo.

    "Nobody has filed a formal challenge in the past," Raggio said.

    "I don't think we should invite that."

    On Friday Gibbons backed off the direct challenge when he tried to bypass the committee with an executive order to take control of federal funds coming to the state.

    But he kept the door open to a constitutional challenge in the event the dispute escalates.

    "It they are going to file a lawsuit against us, they are going to have to prove they have legal authority to exist," Gibbons spokesman Dan Burns said. "That will be very difficult or impossible to prove."

    The subject is important because the committee makes financial decisions in between the 120-day legislative sessions that occur every other year.

    Without that group to move money around to accommodate price increases, compensate for flawed revenue projections and cope with surprises, the entire Legislature could be called back to Carson City to settle every unexpected change in fiscal circumstances.

    That's how Nevada did business before the committee was created in 1969 in an effort to streamline state government.

    By creating the committee, the Legislature could make its policy, taxation and spending decisions during the regular session and go home. The committee stayed behind to guard the till and make adjustments based on requests from the Board of Examiners, a group that includes the governor, secretary of state and attorney general.

    "Over the years it has been economical and practical to have these in lieu of having an annual session," Raggio said.

    There's only one problem: the state constitution says any legislative action outside the 120-day legislative session, "is void, unless the legislative action is conducted during a special session convened by the Governor."

    The discrepancy is no secret.

    Almost since the committee was created, observers, and even members, have occasionally questioned the group's legitimacy.

    "There are citizens who don't have their legislator voting on these things," said retired state archivist Guy Rocha. "I don't think it is quite taxation without representation, but it is budgeting without representation."

    Rocha says the intellectually honest approach would be to hash out the legitimacy of the committee in court or go through the laborious process of changing the state constitution to have a legislative session every year so the committee isn't necessary.

    "We need to overhaul all of this, raising this question about the IFC may in fact bring this to the fore, finally," Rocha said.

    Former state Sen. Bob Beers, who also served on the committee, agreed with Rocha, to an extent.

    Beers suggested breaking the 120-day biennial session into two annual 60-day sessions.

    But he wasn't concerned that the potential illegitimacy of the committee was harmful.

    "I don't think it is serious," Beers said. "They don't have the power to create taxes, so at the end of the day they rearrange stuff and have meetings."

    The current brouhaha over the committee grew out of a recent decision by the group to defy Gibbons' plans for a proposed "stimulus czar" position.

    Gibbons sought the committee's approval to add someone to his Cabinet to oversee tracking and distribution of up to $2.2 billion of federal money coming in from the $787 billion American Recovery and Reinvestment Act, or economic stimulus for short.

    The committee, led by state Sen. Steven Horsford, D-Las Vegas, agreed that a so-called "stimulus czar" would be handy. But instead of approving money to pay a new Cabinet member, the group moved the job out from under the governor's control and under that of Controller Kim Wallin, a Democrat. It was a party-line vote and widely viewed as a slap at the governor.

    Horsford said it was a simple matter of putting the job in the best place for the people.

    He said Gibbons, a Republican plagued by personal and professional scandals throughout his tenure, isn't the right man to supervise the stimulus distribution.

    Horsford disagreed with Raggio's suggestion of coming back to the table for a compromise that would put the whole dispute to rest.

    "I believe it was a sound decision the IFC made," he said.

    Even if Gibbons does continue to question the legitimacy of the committee, there's no guarantee he can actually undermine it.

    Legislative Counsel Director Lorne Malkiewich said there are legal arguments to bolster the group's legitimacy.

    Malkiewich said the restrictions that limit its scope show that it is merely carrying out duties designated during the 120-day session, not creating new legislation.

    "That keeps it within a box that the delegation is defensible," he said.

    And Rocha said Gibbons is a flawed choice to carry the anti-committee torch.

    As a state legislator and throughout his gubernatorial term, Gibbons was silent on the subject until the committee disrupted his latest proposal to dole out stimulus money.

    "It wasn't in his self-interest at the time," Rocha said of Gibbons' earlier career. "This should have been called long ago. I actually see his position, but I say, 'Jim, where were you all these other years?'"

    Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.

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    Report abuse

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    Report abuse

    workerbee wrote on August 17, 2009 06:33 PM: Time to fire all the czar's. Obumer and all PUBIC servants work for us.


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    wondering wrote on August 17, 2009 04:57 PM: The question really is: Why didn't the gov bring it up when he was first elected and even better when he was OUR rep in Washington? Now that it doesn't work in his favor he will whine and complain.


    Report abuse

    enough special interest wrote on August 17, 2009 03:03 PM: The IFC wants to oversee this so they can give the money to its union friends like Danny Thompson and the program that Mr. Horsford runs in his off time. If you can't see that, then you need to look into this a little bit better. At a recent meeting for weatherization funds Mr. Thompson made the comment that if things didn't go the direction he approved of he would take it straight to the IFC and have the funds pulled, and they were! When the AFLCIO has that kind of power in this town it is a darn shame. That money could have put people to work. Now it is off the table until at least Sept. 17th when they meet again. As citizens we must get involved in our Government and not let things like this happen!


    Report abuse

    HomeIsNevada wrote on August 17, 2009 01:59 PM: All of this hoopla, and for what?
    Gibbons is upset that he won't be able to stamp "handed out stimulus monies" all over his campaign mailers (assuming he even runs again). As it says in the article, he never questioned the validity of the IFC until he had an agenda to push that included the IFC. If his thoughts on the legality of the IFC were genuine, would he not have contended it when he was first elected?
    The facts are this: Nevada is to receive $2.2 billion in federal stimulus monies. The IFC directed the overseeing of these funds to go under Kim Wailin (the State CONTROLLER), where it should go, and then even suggested to trim the salaries of the proposed employees that would be needed to help handle these funds.
    What Gibbons has proposed is the make government bigger by creating MORE bureaucracy, spend MORE federal money on high salaries, and to make his own branch of government more powerful, which is in direct contrast to the vision of our forefathers (i.e. checks and balances).
    Governor, what have you done for us besides bungle up this process, hurl empty threats, and propose to spend more of this federal money on highly paid staff and not using these funds accurately?


    Report abuse

    Comrade wrote on August 17, 2009 08:43 AM: wiplash:
    It should bother everyone DEEPLY!

    Regardless of what your politics are...


    Report abuse

    wiplash wrote on August 17, 2009 08:31 AM: There's that word CZAR again! doesnt that bother anyone else that it means "Supreme Ruler, and King like"!


    Report abuse

    Harry wrote on August 17, 2009 08:23 AM: 2zero:
    What about all the new czars Obam now has? Does your same criteria apply fairly to him as well?


    Report abuse

    2zero wrote on August 17, 2009 08:04 AM: Cream of the crop.....lol, Gibbons has a stimulus czar he found while doing research on craigslist (MILF).


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