Gov. Jim Gibbons said Wednesday that his administration will accept the entire $291 million in federal stimulus funds offered by the federal Labor Department.
Gibbons was willing to accept more than $200 million of the unemployment cash, extending jobless benefits for an additional seven weeks and covering about $95 million in existing costs now covered by the state.
He balked at taking $77 million of the total because it required a statutory change expanding coverage to more low-income and construction workers laid off during the recession. He said his problem was that federal officials made it clear they want that change to be permanent.
"The governor was concerned Nevada businesses would be left to cover the cost of expanded coverage when stimulus dollars run out," a spokesman said.
Assembly Speaker Barbara Buckley, D-Las Vegas, had urged him to accept the money, saying fewer than 4,200 additional people would be eligible under the relaxed requirements, and the $77 million would cover those costs for up to 10 years.
While that argument didn't satisfy Gibbons, statements this week by a Labor Department official that the state can change its law back in the future without penalties did.
"We have the responsibility to do everything we can to help our unemployed workers get through these difficult times, even if that means passing legislation that we would not necessarily approve during prosperous times," Gibbons said. "I'm willing to approve this expanded coverage with the understanding that the issue will be revisited in a future legislative session before federal dollars expire."
Lawmakers, concerned Gibbons would reject the $77 million, introduced both a resolution accepting the cash and the necessary statutory change. Those measures are expected to pass out of the Assembly and be transmitted to the Senate before the end of this week.
Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.