Las Vegas NowLawyer for Nevada Legislature Endorses Borrowing Plan
The Legislature's top lawyer has endorsed a plan that would let state government borrow money from Nevada cities, counties and schools to help cover its bills.
Legislative Counsel Brenda Erdoes determined it's legal for state government to set up a $160 million line of credit with Nevada's Local Government Investment Pool.
The borrowing plan is the centerpiece of a special legislative session that starts Monday, as legislators and Gov. Jim Gibbons decide how to handle a $331 million shortfall in the current fiscal-year budget.
Treasurer Kate Marshall proposed two weeks ago that Gibbons and legislators get funds as needed from the investment pool, which consists of money governments and schools have given to the treasurer for low-risk, short-term investments.
Marshall said pool participants are willing to advance up to $160 million. The pool has $770 million.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
