Benefit of state grants coordinator challenged

CARSON CITY -- Legislators questioned Monday whether a state grants coordinator could secure more federal money since Nevada state government often will not allocate the matching funds required to receive the grants.

"The biggest problem is we won't put up the matching funds," said Assemblywoman Peggy Pierce, D-Las Vegas. "This is not a surprise to anyone who has lived in the state more than 10 minutes."

Pierce made the comment during an Assembly Government Affairs Committee hearing on Assembly Bill 243. The proposal by Assemblyman Ira Hansen, R-Sparks, would create three-member state grants coordinator office, which would cost about $577,000 over the next two years.

The Spending and Government Efficiency (SAGE) Commission, appointed by former Gov. Jim Gibbons, recommended a grants coordinator. The commission estimated Nevada would receive an additional $93 million in federal grants in the first year and $510 million over the first five years of the office.

Nevada ranks last in the nation, receiving only 75 cents back for each dollar its citizens paid in federal taxes, according to the Census Bureau. For decades, the Washington-based Tax Foundation has issued reports showing Nevada ranks at or near the bottom in its return on federal tax payments.

"We are leaving money on the table," Hansen said.

Frank Partlow, former executive director of the c ommission, said when commissioners visited Washington, D.C., they were "floored when we were told Nevada has the worst record of getting federal funding."

But Pierce and Assemblywoman Teresa Benitez-Thompson, D-Reno, challenged Partlow on whether Nevada would secure more grants because Nevada lacks matching funds. Benitez-Thompson said another committee hearing revealed the state Department of Health and Human Services lost out on eight of 11 federal grants because they were contingent on Nevada putting up matching funds.

"How many grants would Nevada procure?" she asked. "How many require matching funds?"

Dale Erquiaga, Gov. Brian Sandoval's policy director, said he did not know how many grants Nevada could acquire, or whether some would be available without matching funds requirements. But he added funds for the grants coordinator's office are included in the governor's proposed budget.

"Certainly there are grants without matching funds," state Budget Director Andrew Clinger said. "We should be looking at investing more state dollars when we have these opportunities."

Just 10 days ago, lobbyists complained that Sandoval wants to cut what the state pays for nursing home care by $20 a day. The cuts would save about $10 million a year, but half of that comes from matching federal Medicaid grants.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.