Gibbons questions funding for state job of woman suing him

By Cy Ryan

Wednesday, June 9, 2010 | 2:47 p.m.

CARSON CITY – Gov. Jim Gibbons took a shot this week at his former nemesis, Mary Keating, who believes she lost her former state job because she leaked information about his use of his state cell phone to send personal text messages to a female friend.

But Attorney General Catherine Cortez Masto and Secretary of State Ross Miller, both Democrats, blocked an effort by Gibbons that could have cost Keating her job.

Keating, a certified public accountant, now works in the state controller’s office overseeing and auditing the federal stimulus funds to the state.

She has a federal suit pending against Gibbons alleging she was the victim of defamatory statements by the governor. Gibbons says she was removed from her job in the state budget office because of performance issues.

Her suit says she suffered mental distress and that proper rules weren't followed when she was given a choice to either resign or take a position in the state Department of Conservation and Natural Resources.

Keating is now paid $103,000 a year. The state controller's office is requesting $150,000 in emergency funds to continue the position through the next fiscal year.

That request this week came before the state Board of Examiners, of which Gibbons is chairman. He questioned whether the duties of the job in the controller’s office were duplicative of the position in his office dealing with stimulus funding.

He said he wanted to see the job description before voting for the funds. His Department of Personnel developed the job specifications for the position last November.

The governor voted against recommending to the Legislative Interim Finance Committee the emergency funding to continue the position. But Masto and Miller both backed Controller Kim Wallin in her plan to keep the position. Keating’s name wasn't mentioned during the meeting.

In 2008, Gibbons made more than 800 text messages on his state phone to his friend, Kathy Karrasch. About five week after the misuse was revealed, Keating said she was told she was being fired, but she was given the option of resigning or taking a similar temporary position in the state Department of Conservation and Natural Resources. She took the job and was later hired by the state Department of Health and Human Services.

Gibbons repaid the state $130 for the text messages.

Keating’s current job was authorized by the Interim Finance Committee last August after a debate on whether to place it in the governor’s office, the state budget office or the controller’s office. Democrats won the argument, putting it in the controller’s office. The position was opened for applications in November and Keating was chosen.

In the federal suit, U.S. District Judge Robert Jones dismissed seven of the 10 claims filed against the governor and his budget director, but he permitted three allegations to go forward.

Among those claims dismissed were ones that Keating’s right to free speech was violated and that she had a legal right and expectation of continued employment in the budget office.