Nevada Assembly Speaker Barbara Buckley says a Congressional report questioning whether legislatures can override a governor who refuses federal stimulus money isn't cut and dried.
The issue is key in Nevada because Gov. Jim Gibbons has said he may reject the unemployment insurance funding in the federal stimulus " $286 million to extend and expand benefits to the jobless.
Gibbons' reason is the law change required to get the money, which expands eligibility to more low-income and out-of-work construction workers. Gibbons has argued it would become a financial burden on the state after the stimulus ends.
The analysis was produced by the Congressional Research Service for Sen. Lindsey Graham, R-S.C. According to a news report, it questioned whether it would violate the Separation of Powers doctrine for a legislature to override a governor in accepting economic stimulus money.
Buckley, D-Las Vegas, said the Legislative Counsel Bureau's legal division reviewed the congressional analysis and doesn't believe it would bar lawmakers from taking the money.
"It just says that if the Legislature accepts, by concurrent resolution, then the state is in essentially the same situation as if the governor had accepted," according to the counsel bureau's response provided to Buckley.
In any event, Buckley said a new decision by the Labor Department should remove Gibbons' concerns about taking the money.
In a letter to Sen. Mary Landrieu of Louisiana, Douglas Small of the Labor Department said states receiving the unemployment funds can later repeal legal changes made to get the money.
Nevada's Legislature every session reviews the governor's recommended budget, authorizes acceptance of federal money and directs that money to specific programs and projects. Buckley said accepting the unemployment insurance funding and dedicating it to extending and expanding benefits for those out of work is no different.
"It's not a problem," she said. "It basically affirms the state can receive the funds."
Assembly Ways and Means Committee action on the legislation is expected this week.
Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.