By Sean Golanka/The Nevada Independent

Lawmakers began appropriating the state’s share of $2.7 billion in federal American Rescue Plan (ARP) general aid on Wednesday, approving disbursements totaling more than $600 million to pay back unemployment loans, bolster K-12 education funding and upgrade the state’s unemployment system.

They also learned that an additional $1.1 billion of unallocated ARP funds will need to be appropriated by the Legislature in the regular legislative session in 2023 or a special session.

During a Wednesday meeting of the Interim Finance Committee, representatives of the Governor’s Office of Finance told legislators that the state transferred more than $1 billion in ARP funds — roughly 16 percent of the ARP dollars received by Nevada — to the state general fund last week to backfill revenue lost as a result of the COVID-19 pandemic.

Prompted by a question from Sen.  (R-Reno), budget analyst Tiffany Greenameyer confirmed that any allocations of those funds will have to be approved by the full Legislature and cannot be approved by the interim committee alone, because the money is unappropriated within the state’s general fund.

That means any spending of those $1.1 billion in general fund dollars will need to happen through a special session or in the next regular legislative session in 2023. In June, Assembly Speaker  (D-Las Vegas) told The Nevada Independent he was “not entirely sure” lawmakers would be able to spend the federal relief dollars without a special session. Lawmakers already expect a special session this fall to complete the redistricting process ahead of the 2022 elections.

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