Regents' error costs system $7M in budget cuts

By Geoff Dornan

Appeal Capitol Bureau

The Board of Regents is expected today to try to find a way to fix a mistake in judgment that effectively added $7.2 million to their total loss because of state mandated budget cuts.

When regents met in special session last month to decide how to make the 4.5 percent reductions mandated by Gov. Jim Gibbons, they were expected to use furnishings, fittings and equipment money for the first three Health Sciences Center projects as part of their cuts.

According to Director of Administration Andrew Clinger, system officials were well aware they couldn't use that money this biennium anyway because the projects won't be ready for those, purchased in the final phase of any project.

But the board, with Chancellor Jim Rogers leading the charge, voted not to surrender that money, instead hitting other areas a bit harder to produce the required $57.6 million in total reductions needed to meet the governor's mandate.

After they did so, Public Works Manager Gus Nuñez - at Clinger's direction - cut the FF&E funding anyway.

Clinger said Wednesday it makes no sense to leave the money in the budget if it won't be spent. He said the 2009 Legislature can appropriate it again when those projects are ready for FF&E.

Clinger added that system officials were advised before that special meeting that he and the Public Works Board planned to take the roughly $7 million.

The result: The regents shot themselves in the foot because, with the FF&E money now counted as part of the Department of Administration's reductions instead of the university system's cuts, the board ended up losing $64.8 million instead of $57.6 million.

Executive Vice Chancellor Dan Klaich said he doesn't know exactly what will happen but that he expects the issue to come up today. He said he believes regents were under the impression the state would respect their decisions on where and how to cut.

"They made the decision that was not the place to cut and thought that would be respected," he said.

The three projects are: UNLV's Shadow Lane Biomedical Research Building, $2.27 million; The Medical Education Learning Lab Building at UNR, $1.93 million; and UNLV's Advanced Clinical Training and Research Center at Shadow Lane, $2.99 million.

They are the first projects in the proposed Health Sciences Center, which would bring health providers operated by the state, the medical school and nursing programs together under one umbrella to expand both the size and scope of medical school training in Nevada at all levels.

It would nearly triple the total medical school budget over the next decade and double the state share of that funding. It would also require up to $350 million in capital construction.

Chancellor Rogers has made the project his top priority for the system.

• Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.