Nevada: Heidi Gansert

LAS VEGAS - Following Republican Gov. Jim Gibbons' surprise announcement Friday that he would call for a special session of the state legislature to address Nevada's budget crisis, state Republicans swung into line behind the governor in arguing that choices are limited between either deferring state employees' cost-of-living allowance increases or laying off workers.

Nevada Democrats and labor unions condemned the call, however, saying a special session is not necessary and disputing the need for a COLA deferment.

LAS VEGAS-A deal between the Nevada State Education Association and Station Casino, Harrah's and Wynn may have been reached in an attempt to kill a ballot initiative that would have raised the  gaming tax, but the state's political leaders haven't thrown their full support behind it yet. The Democratic leadership in the Assembly doesn't "anticipate any problems," but Republicans say they are waiting to see the details of the agreement before deciding whether to support any compromise to raise the room tax.

LAS VEGAS-Once again this year, it appears that Assemblywoman Francis Allen (R-Las Vegas) will have to fend off a challenge from the right.  Richard McArthur, a retired FBI agent who ran against Allen in her first race in 2004, is challenging her again this year, arguing that he, and not Allen, is a true conservative.

"She's not conservative enough," said McArthur Thursday.  "She votes with the Democrats most of the time and she's had those other issues."