Paying unfunded liabilities urged

CARSON CITY — Government spending should be allowed to exceed an expenditure cap as long as the money goes toward paying down the state’s unfunded liabilities, Nevada lawmakers were told Monday.

The Nevada Taxpayers Association, Nevada Faculty Alliance, Retired Employees of Nevada and the Las Vegas Chamber of Commerce asked the Senate Finance Committee to support Assembly Bill 196, which sometimes would allow spending above the cap.

Nevada’s Public Employees Benefits Program has a $4.1 billion unfunded liability, largely because of retiree health care costs. Beginning this summer, all states must report such unfunded liabilities.

If states don’t take action to reduce them, a bond-rating agency could downgrade their ratings.