Research Briefing

Stimulus Funds Wasted In Silver State As Jobs Continue To Be Lost

STIMULUS FAILURE BY THE NUMBERS: JOBS CONTINUE TO BE LOST IN THE SILVER STATE 

Since The Stimulus Was Passed Last February, Over 65,000 Jobs Have Been Lost In Nevada. (U.S. Bureau Of Labor Statistics Website, www.bls.gov, Accessed 2/12/10)

Unemployment In Nevada Has Increased By 30 Percent. (U.S. Bureau Of Labor Statistics Website, www.bls.gov, Accessed 2/12/10)

Unemployment Rate Has Jumped From 10 Percent To 13 Percent. (U.S. Bureau Of Labor Statistics Website, www.bls.gov, Accessed 2/12/10)

AND NEVADA IS NO STRANGER TO STIMULUS WASTE, FRAUD AND ABUSE

Four Phantom Districts In Nevada Apparently Receiving $8 Million In Stimulus Funds. “In Nevada, the biggest chunk of funding in question was more than $6.3 million going to the nonexistent 32nd congressional district … While the 32nd district isn't real, there were $6.3 million in grants awarded to the Reno-Tahoe International Airport Authority for a ramp paving project… There still are no official explanations for a combined $1.4 million listed as creating nine jobs in the nonexistent 22nd, 9th and 25th districts.” (Benjamin Spillman, ““RECOVERY.GOV: Errors On Web Site Fund List,” Las Vegas Review Journal, 11/19/09)

White House, State Of Nevada, And Sen. Harry Reid’s Office All Disagree On Stimulus Job Creation In Nevada. “Forgive the average citizen if the federal stimulus does not appear to him as transparent as promised… The federal government says that in Nevada the stimulus has directly created or saved 5,658 jobs. The state itself puts that number at 5,080. Sen. Harry Reid’s office says it’s 6,134.” (David McGrath Schwartz, “Stimulus Job-Count Guidelines Frustrate,” The Las Vegas Sun, 11/13/09)

Job Creation Numbers In Nevada Are Merely “Rough Estimates.” “Not only do the numbers not match up, but instead of representing real bodies in actual jobs, the numbers are estimates — the result of different state agencies using different formulas to calculate stimulus results… Some local governments, for example, have been told to take the amount of stimulus money they received and divide it by $92,000, the theoretical average wage and benefits of a job. The Nevada Department of Education used $66,681 for its calculation of an average wage and benefit for K-12 employees. And the state’s higher education system figured it at $45,000.” (David McGrath Schwartz, “Stimulus Job-Count Guidelines Frustrate,” The Las Vegas Sun, 11/13/09)

Stimulus Funds Paid For Fire Station That Lacks Firefighters. “Though Washoe County has received a $2 million economic stimulus grant to build a new fire station in the southwest Truckee Meadows, county commissioners haven't a plan to pay for a six-person crew… Chief Michael Greene of the Sierra Nevada Fire Protection District said he expects to ask commissioners Dec. 8 to accept the grant, while he haggles with federal officials about adding $1 million to pay for full construction costs for the station to serve Arrowcreek and Washoe Valley residents.” (Susan Voyles, “Grant To Pay For Fire Station; Who Will Pay For Crew?,” Reno Gazette Journal, 10/23/09)

Nevada’s Stimulus Czar Said Stimulus Funds Going To Her State Are “Very Deficient.” “In Nevada, where President Barack Obama made a major speech touting the achievements of the stimulus plan, the state’s share of stimulus money is ‘very deficient,’ said Nevada’s stimulus czar Mendy Elliott. We are certainly grateful for the help that we received but the fact of the matter is ... there should have been some thoughtfulness.’ Unemployment in the state stood at 11.3% last month.” (Louise Radnofsky, “Some Hard-Hit States Get Less Stimulus,” The Wall Street Journal, 7/1/09)