State needs more money to fight fires

CARSON CITY -- The cost of fighting Nevada range fires this summer has drained two state emergency funds and raised the prospect of a special session of the Legislature.

This has been one of the worse years with more than 1.5 million acres burned and if this continues and explodes next summer again, there won't be enough money to cover the costs.

"We're not in good shape," state Budget Director Perry Comeaux told the Board of Examiners Tuesday. "If we have a bad fire season next year, there may have to be a special session. It's not a happy prospect."

The contingency fund under the examiners board started with $1.48 million in April and it's now down to $572,000. The emergency fund of the Legislative Interim Finance Committee started with $7 million and there is a request for $3 million to cover firefighting costs so far.

Comeaux said the fire season isn't over this year and further costs are expected.

The board, headed by Gov. Kenny Guinn, approved a plan to ask the Interim Finance Committee to also dip into its fund to supply $1.5 million to replenish the contingency fund of the board.

On the bright side, Comeaux said the federal government owes the state about $2.5 million as its share in fighting the fires. But that money isn't expected until next spring. That might carry the state through until the regular session of the Legislature in January 2001.

"The IFC (Interim Finance Committee) contingency fund will not be in that good a shape," he said.

These two funds were established for the state to use in emergencies when the Legislature is not in session.

The examiners board also agreed to pay $1 million to IBM Global Systems for its work last fiscal year on the ill-fated welfare computer system.

The state had withheld payment because the federal government had not come up with its share of $1.4 million. The books on the state are closed at the end of August for fiscal 1999. So those pending claims, if they are eventually approved, must be paid from the stale claims account.

Guinn said "IBM was pushing very hard" to get its back pay. "We told them we must match up with the feds first," meaning the federal government must first approve the claim before the state kicks in its share. The federal government eventually agreed to the payment to IBM Global.

The computer system for the state Welfare Division, nicknamed NOMADS started as a three-year, $22.6 million project nearly 10 years ago. Its costs have ballooned to $88.8 million now and will top $100 million by the time it is scheduled to be completed next October.

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