Bob Loux, former head of the Nevada Agency for Nuclear Projects, listens to proceedings in an Ethics Commission hearing Friday, March 13, 2009, in Carson City, Nev. Loux was fired after he increased his and his staff's salaries above the amounts authorized by the Legislature. (AP Photo/Nevada Appeal, Cathleen Allison)
The former accountant for the Nuclear Projects Agency told the Ethics Commission Friday Bob Loux directed her to do the math to divide salary money for a vacant position among the remaining employees in the office.
"The first instance when this occurred was when we went to non-classified," said Trudy Stanford, who retired in September after 10 years at Nuclear Projects. "The amount of salary left unused was designated to be divided proportionally."
She said that was in 2000 just after the law allowing the governor's office to set salaries for his own staff was passed.
Stanford said she did the calculations to raise agency salaries several times as different pots of money became available. One of those raises, she said, was almost 14 percent for the remaining seven employees in the office.
Using payroll records, Budget Director Andrew Clinger estimated Loux paid himself and his staff nearly $200,000 more than authorized by the Legislature and governor " Loux himself receiving $67,585 of the total.
Loux is facing an ethics complaint for allegedly raising his own salary without permission using not only salary money that was appropriated for a vacant position but grants from the Western Governor's Association.
He has since been removed from the post he held more than 20 years and is facing state action to recover the overpayments in addition to the ethics action.
Stanford said she was told by Loux that he had permission to control his own agency's salaries when Kenny Guinn was governor.
She said she was told Loux had the authorization to increase salaries.
"It was my understanding the authority was given to Mr. Loux to manage the budget," she said.
And according to records filed with the Ethics Commission, it is Loux's signature which appears on the documents authorizing the pay raises.
Former Gov. Kenny Guinn and all five of his chiefs of staff testified Thursday they gave no such authorization to Loux or anyone else. Guinn also testified that no one under his command was allowed to sign off on their own pay raises.
Clinger was still to testify in the case, which will continue Monday.
And Loux's lawyers were to present witnesses they say will explain exactly what happened. Loux has denied violating state budgeting rules in raising the salaries.
Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.