<div><p> CARSON CITY As state leaders look for ways to address an $881 million budget deficit, the idea of using local government money earmarked for public works projects is gaining support among legislators.</p><p>Lawmakers have directed legal staff to examine the states ability to take a portion of the $4.2 billion that governments throughout Nevada counties, cities, school districts and water authorities have set aside for roads, schools, parks and buildings.</p><p>The idea of stealing the capital funds in one form or another is gaining currency, said one legislative source, speaking on the condition of anonymity because no plan has been finalized.</p><p>Significant concerns remain among lawmakers, however, particularly those who note a reeling construction industry could benefit from government spending on capital projects. But the fact that these pots of money are being examined reflects the states dire</p><p> financial situation, according to legislative leaders.</p><p>Gov. Jim Gibbons told a group of mayors Monday that he would not recommend taking money from local governments. But legislative leaders have, so far, refused to give such assurances.</p><p>Senate Majority Leader Steven Horsford, D-Las Vegas, said, Before we conclude not to pursue any of those options, were going to go through the public hearing process.</p><p>That public review begins in earnest today as the Legislatures Interim Finance Committee hears about potential budget cuts in the K-12 and higher education systems. It will continue next week as the Legislature hears from more state agencies about effects cuts would have on their budgets.</p><p>Gibbons senior staff met Wednesday with legislative leaders to discuss the executive branchs recommendations of how to cut the budget and released a plan late in the day, calling for proposed cuts to department operating budgets totaling $418 million, or about 10 percent.</p><p>Democratic lawmakers seemed to accept many of the cuts, but the question remains: How will they find another $480 million in the budget?</p><p>On that question, lawmakers and Gibbons staff were less forthcoming. Lynn Hettrick, Gibbons deputy chief of staff, said they were still researching some ideas to see if they are legal or would generate revenue in time. Hettrick repeated that there would be no tax increases.</p><p>The Associated General Contractors, which represents large construction companies, told the legislative committee that capital money should not be raided. The $4.2 billion statewide total almost $4 billion of which is in Clark County is allocated for public works projects that would put people to work, said Jeremy Aguero, a principal with financial firm Applied Analysis, who made the presentation on behalf of the contractors.</p><p>By shifting the money from capital projects to ongoing government operation costs, Youre trading public-sector jobs for private-sector jobs, Aguero said. Youre moving the jobs from one side of the ledger to another.</p><p>Steve Holloway, executive vice president of the Associated General Contractors Las Vegas chapter, said that even though growth has slowed, Nevada is still catching up with building roads, water and sewer systems and upgrading schools.</p><p>Were 10 years behind in infrastructure, he said.</p><p>Still, lawmakers are seeking more information on the money. Horsford said he wanted to know which projects the money would fund and their expected completion dates.</p><p>During last years legislative session, Assemblyman Joe Hogan, D-Las Vegas, sponsored a bill that would divert money from the Southern Nevada Water Authority and Las Vegas Valley Water District. Hogan said with growth flat-lined, he thought the agencies could afford to give up some of their reserves.</p><p>This is the perfect time to re-examine what were doing, he said.</p><p>David McGrath Schwartzcan be reached at 775-687-4597 or at david.schwartz@lasvegassun.com.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68497433&bid=informcom" /></div><div id="copyright"><div>

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