Tuesday, March 25, 1997 | 11:59 a.m.
The Assembly unanimously passed Assembly Bill 224 last week to pay the state's 25 percent share of Federal Emergency Management Agency disaster assistance grants for debris removal and road and bridge repair.
AB224 also allowed local governments to borrow up to 15 percent of the state's $100 million "rainy day" fund to match federal grants in future disasters.
However, just before Monday's Senate floor session, the Senate Finance Committee approved an amendment to eliminate access to the rainy day fund.
Finance Chairman Bill Raggio, R-Reno, argued that using money from the state fund is inappropriate for disaster relief. Instead, money should come from a fund created specifically for that purpose, he said.
SB218, proposed by the Finance Committee, creates such a fund, but has not yet been passed out of committee.
The move angered many backers of the original bill who argued that the Assembly wouldn't approve the revised version and the bill would be stuck in the Legislature for another week or more.
"Nevada has set the record for the state that has taken the longest to match FEMA funding to get money to the poor people trying to get help after the floods," said Sen. Dina Titus, D-Las Vegas.
Titus said the bill was the result of complex, time-consuming bipartisan negotiations.
"After all of that work, to change the bill with this 'secret amendment' will make it take longer," she said. "The Assembly isn't likely to concur."
Titus said the amendment benefits flood victims in Northern Nevada at the expense of the southern part of the state that would be without funding should a disaster strike tomorrow.
Raggio said he had met with members of the Assembly last week and warned them of the Senate Finance Committee's plans.
"From the beginning they were informed that the stabilization fund is not an appropriate source," Raggio said. "If by your remarks you suggest that this house will be held captive by the actions of the other house, you're mistaken."
Assembly Speaker Joe Dini, D-Yerington, said he was unaware of the Senate's plans.
"We had a feeling the bill would go through the way it was," Dini said. "The way it's been amended cuts the rest of the state off. If the governor or the president calls a disaster area in the state tomorrow, those areas are entitled to some help too."
"We're talking about $3.5 million total," Dini added. "That's not a big deal."
Sen. Ray Rawson, author of the disaster relief fund bill, said the stabilization fund must be saved for state operations should it run out of money.
"It's inexcusable to use the anxiety of this flood to try to change state policy on fiscal responsibility," said Rawson, R-Las Vegas.
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