Governor examines terms in $83M grant

Gov. Jim Gibbons said Wednesday the legislation providing an additional $83 million in federal education money to Nevada may have passed Congress this week, but that doesn't mean the state will automatically

accept it.

"I think there's a lot we don't know about with money that comes from the federal government," he said following the Board of Examiners meeting.

He said sometimes grants have maintenance of effort requirements that commit the state to spending after the federal grant expires.

"We get the $83 million but often times we have to continue the funding with money the state doesn't have," said Gibbons.

He said staff is reviewing the grant requirements to see what strings are attached to the money before accepting it.

But Gibbons said he's not opposed to taking the money if the terms are acceptable.

"I'm prepared to say 'thank you.' I'm prepared to say 'no thank you,'" he said.

Gibbons' public information officer Dan Burns said one problem with the funding is that it is apparently restricted to hiring teachers.

"To say the money can only be spent on teachers, maybe we have a district that needs books," Burns said.

He said that also creates a problem next year if, after using the money to hire 1,200-1,400 teachers, the state finds it can't afford to keep those teachers on district payrolls.

As for the Medicaid money contained in the bill - some $79 million for Nevada - both Gibbons and Director of Administration Andrew Clinger said that is a much simpler decision since it is simply an extension of the added funding originally provided in stimulus funding and was included in the state's Medicaid budget by the February special legislative session.