Gov. Jim Gibbons has said repeatedly he will reject portions of the federal stimulus that would commit Nevada to increased spending or expanded programs.
He has also left the clear impression that the decision is his alone to make.
It isn't.
Section 1607A of the American Recovery and Reinvestment Act says the governor can accept or decline different parts of the stimulus money. But Section 1607B states that a state Legislature can also choose to accept stimulus dollars. Lawmakers may introduce a resolution on the issue as early as this week.
At issue is the change in eligibility for unemployment insurance that the state would have to adopt to claim $76 million to extend benefits by another month. Gibbons said it isn't worth it because it would require "mandatory, permanent, irrevocable" changes that would cost businesses more in taxes.
In addition, the governor has raised questions about other portions of the package that require the state to raise different budgets in order to qualify.
That could include education funding, where $265 million must be pumped back into higher education budgets in order for Nevada to qualify for $395 million in higher education and K-12 funding.
"Once this bill expires, states will be forced to pare back benefits to pre-stimulus levels or raise taxes to continue to provide these federally mandate expansions," Gibbons wrote in his letter to President Obama's administration generally accepting the stimulus cash.
Asked whether lawmakers would consider overriding the governor on the unemployment money, Assemblyman Bernie Anderson, D-Sparks, said, "I think there's a very good possibility."
Assembly Speaker Barbara Buckley, D-Las Vegas, said independent of the governor, lawmakers will be making their own decisions on different pots of stimulus money.
"We are still sorting through the Stimulus dollars but I cannot envision where we would not accept education Stimulus," she said Friday.
As for the unemployment money, she said, "Based on information we are receiving, it's very clear to me we should also accept that money."
She said the unemployment money will continue for eight years by which time the state's economy should have fully recovered, so no tax increase on business would be required.
Buckley said the Legislature's first task will be to make decisions on what to do with the state's budget.
"Not do anything with the stimulus money, then see what the gaps are, what makes sense," she said.
Buckley said, for example, while the governor's administration is looking at the increased Medicaid money from the stimulus to restore higher education budgets, "freed-up money in health care may be needed in health care."
Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.