Vol. 3, No. 17
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July 1, 2006
Nevada's Online State News Journal
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CRIMINAL DEFENSE |
COPYWRITING
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Another Special Session? Governor Becoming Known For Them
Foul Ups By State Agency To Cost Several Million -- It's Not Available
The State Public Works Board has been determined to be the final cause of construction delays and problems at the Veterans Center in Boulder City. The state wanted to hold contractor Addison, Inc. responsible for the problems, but an arbitration board found the state to be responsible. A $10.3 million fine or obligation is the cause of concern at the state's highest levels.
The state has massive amounts of money, some estimate as much as $500 million in its coffers due to Governor Kenny Guinn's massive tax hike of 2003 coupled with an exuberant economy, but there isn't a dime in a contingency fund that is designed to take care of problems like this. This has led some around the governor to suggest a one-day special session of the legislature to make some of the surplus state funds available.
During recent discussions the governor has indicated that he isn't leaning toward a special session at this time. There is a time limit on when the money must be paid and if it isn't met there will be considerable amounts of interest added to the $10.3 million.
The Public Works Board and its architects were determined to be the cause of building delays and added costs to the veterans' home and Governor Guinn accepted the resignation of Public Works Board manager Dan O'Brien. The Public Works Board is made up of appointed members generally from the construction industry. Governor Guinn has asked in the past that the board membership be changed to appointed members from those who are elected officials. Guinn offered legislation to that effect before and it wasn't passed by the legislature.
In a budget that deals in the billions of dollars and with a surplus of hundreds of millions, no one is saying why the state has allowed its contingency fund to be depleted. It should have been maintained at a specific level, most are saying, but wasn't while emergency funds were sought by various agencies. The legislature is the one that moves funds from the surplus side to the emergency contingency fund. It isn't clear whether they can do that on their own during between sessions interim finance committee meetings, or whether a specific request has to be made by an agency or the governor.
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