Woman suing Gibbons will oversee state’s spending of stimulus

By Cy Ryan

Published Monday, Nov. 2, 2009 | 9:17 a.m.

Updated Monday, Nov. 2, 2009 | 11:35 a.m.

CARSON CITY – A woman who is suing Gov. Jim Gibbons over her job loss is now working to oversee how his administration spends federal stimulus money.

Mary Keating has been hired by state Controller Kim Wallin to the new position of reporting and accountability officer to accurately report on the use of $2.2 billion in federal funds.

Keating, who has worked in government for 26 years, will earn $102,000.

Keating was administrative services officer in the state Budget Office, monitoring spending by some agencies, including that of Gibbons. She alleges she lost her job because she leaked information that Gibbons was using his state cell phone to place personal calls and text messages to female friends in 2008.

Keating said she reported to her boss, Budget Director Andrew Clinger, that the governor made more than 800 calls and text messages over several weeks on personal business. She was then dismissed from her job.

But she immediately landed a similar position in the state Department of Health and Human Services at the same salary. Wallin said Keating in her new position “will hit the ground running” to help the state keep track of how the federal stimulus money is spent.

Wallin said Keating has been monitoring the stimulus money spent by the health and human services department. There have already been some errors discovered in the state in the reporting, the controller’s office said.

Dan Burns, communications director for Gibbons, said the state is reporting directly to the federal government. “The state controller’s office is playing a lot of games,” he said.

This appointment by Wallin, Burns said, won't make a difference in the number of jobs created or the projects completed. But, he said, “We will follow the law.”

After Keating was dismissed in the budget office, she filed a District Court suit in Reno against Gibbons and Clinger.

Gibbons reimbursed the state $130 for the personal cell phone calls and text messages and denied they were “love notes” to women.

Charles Harvey, appointed by the governor to handle stimulus funds reporting, said state agencies will be reporting directly to the federal government. He said the reports would not go to the controller’s office,

Harvey said Keating’s function will be more of an auditor and helping set up internal controls on the spending.

He said the state wants to make sure it gets all the funds it’s entitled to and follows the correct procedures in spending.