Counting positions Washington’s way
While Clark County and Southern Nevada cities look to Washington, D.C., for advice in estimating jobs to be created or saved through the Reinvestment and Recovery Act, the Congressional Budget Office last month stated it wasn't using such estimates to measure the stimulus' impact on employment and the nation's economy.
Yet, because some of the Reinvestment and Recovery Act grants in Southern Nevada are for construction projects that are just under way or haven't started yet, officials can only estimate the number of jobs using a gauge recommended by the Obama administration.
Using the formula from the White House's Council of Economic Advisers, Henderson estimated its $2.2 million in energy-efficiency projects would create 25 jobs because the formula says every $92,000 in Recovery Act money creates one such job.
The Council of Economic Advisers in May acknowledged that the method is "crude" and "imperfect," in part because it doesn't take into account "obvious differences" in wages among Recovery Act projects and across different regions. However, the Council also maintains the "rule's key virtue is its simplicity and conservatism," and that the $92,000 average is realistic even though the average annual wage is far less, because there are significant costs besides wages.
Unlike Henderson, North Las Vegas officials did not use the White House method when they estimated 25 to 30 jobs would be created from the city's $2.5 million in Recovery Act road-pavement jobs that are expected to get under way this month, said Randy DeVaul, deputy director of engineering for the city. Instead, the city based its estimate on its experience with similar projects. Using the White House method, however, the $2.5 million price tag would produce 27 jobs, which is right in line with the city's independent estimate, DeVaul said.
The estimates are viewed as preliminary indicators. The final number of jobs will be based on reports submitted as construction work unfolds, DeVaul said. The reports are expected to include contractors and subcontractors, the number of employees, hours worked and wages paid.
