Stimulus jobs gather slowly

At a time when Las Vegas' unemployment rate is among the country's worst, Clark County and its cities expect to create only a handful of jobs by year's end, even though they say the federal government has awarded them between $50 million and $60 million in grants from the American Reinvestment and Recovery Act of 2009.

Not counting 365 short-term jobs for teens over the past summer, local government officials estimated they will have created or retained between 245 and 255 jobs by Dec. 31. And between 240 and 250 of those are construction jobs expected to last from six weeks to 12 months. Others include a police dispatcher position in North Las Vegas, two full-time jobs and one part-time position at Las Vegas City Hall.

The federal government, on the other hand, had been claiming since early October that the Recovery Act saved or created about 5,667 jobs across Nevada, but the total was reduced last week to about 5,000 after state officials corrected a mistake in their original estimates. About 3,500 of those jobs are retained teaching jobs in public schools and the state university system, which means 1,500 other jobs had been created or retained as of Oct. 1 through loans, contracts and other grants forwarded to the state.

Most of the 240 to 250 construction jobs to be created through local-government grants were not included in the state's total because the projects haven't started or started after the state's last reporting deadline. Those construction jobs represent about 1 percent of the 23,300 jobs the White House initially said would be created or saved in Southern Nevada by January 2011.

Southern Nevada's congressional representatives, Democrats Dina Titus and Shelley Berkley, both said local government grants represent only a portion of the jobs saved through stimulus spending in Southern Nevada, and that local government grants are expected to create far more jobs early next year.

In a statement, Berkley applauded the local agencies for already "creating hundreds of jobs" and said those jobs will have a ripple effect, pumping "dollars back into the our local economy."

Titus, in a statement, said, "With the state having only begun work on about a third of the transportation projects funded by the bill, more jobs will be created once those get under way."

More than a fourth of the noneducation jobs created or saved by Southern Nevada agencies are on three projects administered through the Regional Transportation Commission: a park-and-ride lot project in northwest Las Vegas, which since June has created 227 temporary construction jobs or the equivalent of 51 full-time jobs; a bus terminal project in downtown Las Vegas, which since August has created 191 positions or the equivalent of nine full-time jobs; and a transit project on Boulder Highway, which since the end of last month has created 76 positions or the equivalent of 6.5 full-time jobs, according to the latest figures from Transportation Commission administrators.

Clark County Commission Chairman Rory Reid, a Democratic candidate in next year's governor's race, said he instructed county administrators to pursue federal funds right after President Barack Obama enacted the Recovery Act in February. Also, he said, the county and Southern Nevada cities coordinated efforts to leverage as much stimulus money as possible.

"I don't think anyone knew what to expect, and, no matter what our expectations are, we have to keep fighting for the federal tax dollars," Reid said. "This is very complicated. There will be missteps along the way, but it's no reason to sit on the couch and get frustrated."

With Nevada's unemployment rate hovering about 13 percent, and a 27 percent drop in Southern Nevada's construction-related jobs over the past year, new construction work is sorely needed. However, with double-digit vacancy rates across the real estate market, the demand for private sector construction isn't expected to pick up soon, said Brian Gordon, principal with Applied Analysis, a Las Vegas-based financial consulting firm. "Construction is well off the peak and well off where it was a year ago. ... The construction sector is expected to continue to struggle through the current economic cycle.

"We have over 130,000 people looking for work in Southern Nevada who are unable to find it. That is a problem," Gordon said. Even though grants to Northern Nevada communities appear to have created or saved more jobs than in Southern Nevada, the area's congressional delegate, Rep. Dean Heller, R-Nev., said in a statement that the Recovery Act was a bad idea.

Heller states, "A real stimulus package would have expanded tax relief and included a housing fix. This bill, which was conceived and written behind closed doors, has done a great disservice to Nevadans and the American people."

Given the deadlines for grant applications, little of the federal money earmarked for Clark County and Southern Nevada cities has been delivered so far. They are not alone. According to the Recovery Act Web site, Nevada has been awarded nearly $988 million but has received $314.6 million.

With the Clark County Commission, the bulk of jobs created to date were summer work for 315 teenagers, who were employed full time for about two months. In addition, county officials expect by year's end there will be an estimated 31 full-time but temporary construction jobs on a project to relocate overhead power lines at the county-run North Las Vegas Airport. A $2.7 million Reinvestment and Recovery Act grant is to be combined with other federal funds to complete the $9 million project.

"These projects have to go through federal and state procurement guidelines and rules, and these different projects and programs are going through those processes right now," county spokesman Dan Kulin said.

Reid says he expects the Recovery Act to bring nearly $400 million to Southern Nevada early next year, most of that from the $367 million Neighborhood Stabilization Fund II, which is proposed to help neighborhoods hit by foreclosures. None of that money has been received, but Reid and others are confident it will come.

Reid acknowledged the program is not expected to create or save many jobs. But he added, "If we can create a market where families can get homes out of hands of banks, that is good for the community."

The County Commission, during the first week of December, approved contracts with two nonprofit agencies using $4.2 million in Recovery Act money. Starting Jan. 1, the agencies are to provide services to families recently made homeless or on the brink of losing their homes. According to county estimates, the program is expected to save or create five to seven jobs.

Meanwhile, the city of Las Vegas expects to create 14 full-time construction jobs by the end of the month. A $1.4 million grant will be used to construct solar panels atop carports at city facilities, lowering the city's electric bill. The projects should last one year. Also, the city expects to retain the equivalent of two City Hall positions with the $103,000 allocated for administering the construction. In addition, Las Vegas expects to use a $5,354 grant to pay a part-time City Hall position, according to city officials.

Last week, Henderson officials received the city's first Recovery Act dollars, earmarked for $2.2 million in projects proposed to lower the city's electric bill by installing solar panels and purchasing more energy-efficient air conditioners. Those projects are expected to create or save 25 full-time jobs for four to six months, said Mark Hobaica, architect for Henderson.

"For us, obviously, we have yet to receive the funding. Once we receive it, we will start implementing projects," Hobaica said. "That will create jobs, temporary, construction jobs. ... It's not going to create new (permanent) jobs because it's not going to be used to build any new city facilities" that will require day-to-day staffing."

Henderson, along with the county and other Southern Nevada cities, also plan to compete for some of the $400 million in federal Community Development Block Grant funds. That program would include weatherizing homes and could create or save temporary jobs.

Meanwhile, North Las Vegas officials last week received the city's first federal dollars for buying homes in neighborhoods depressed by foreclosures. Those funds, however, are coming from the previous, massive stimulus package enacted under President George W. Bush. Recovery Act dollars for similar housing programs aren't expected until early next year, North Las Vegas officials said.

Also last week, the North Las Vegas City Council awarded $2.5 million in Recovery Act funds to Southern Nevada Paving to repave portions of Lake Mead Boulevard and Pecos Road. The projects are expected to employ 25 to 30 full-time workers for four months. Also, the city expects to save or create half of a police dispatcher job.

Mesquite and Boulder City also expect to receive $1 million apiece in stimulus funds that will create temporary jobs at small projects.

Contact reporter Frank Geary at fgeary@review journal.com or 702-383-0277.