Sandoval: Despite improved economy, more poor people in Nevada

By Cy Ryan

Thursday, Jan. 22, 2015 | 2 a.m.

CARSON CITY — Gov. Brian Sandoval says the economy is getting better, but his budget predicts there will be more impoverished Nevadans needing government help to cover medical bills, secure food for their family and qualify for welfare assistance.

The budget predicts a state population growth of more than 1 percent in each of the two coming fiscal years.

Source: Nevada State Demographer's Office, projections based on 2012 estimate

But Sandoval administrators Wednesday outlined higher percentage increases than the predicted population growth in recipients of Supplemental Nutrition Assistance Program (SNAP), or food stamps, Aid to Families with Dependent Children, and Medicaid. In his message to the Legislature, the governor said the population growth means an increased demand for social services. He added, however, that unemployment is dropping.

Assemblyman Paul Anderson, chairman of the Assembly Ways and Means Committee, says he wants answers.

“As the economy grows, there are more increases on TANF (Temporary Assistance to Needy Families) and SNAP,” he said at a pre-session meeting of the Senate and Assembly money committees.

Source: Nevada Division of Welfare and Supportive Services, 2013

His committee, he said, will “dig deeper” into why demand for state aid programs is growing while the economy is getting stronger. Anderson, R-Las Vegas, said, “Logic says they should be going down instead of up."

Once the legislative session starts Feb. 2, he says his committee will be measuring the success rate of these programs in getting individuals to be self-sufficient.

According to the governor’s budget, the number of food stamps recipients in the next two fiscal years will grow 10 percent to 448,702.

Medicaid recipients will rise from 557,807 this fiscal year to 565,382 in fiscal 2017.

Source: Division of Welfare and Supportive Services, Governor Recommended Budget 2015-2017

Grants numbers to welfare families grew 9 percent this fiscal year but is expected to decrease by 2 percent next fiscal year and then increase by 1 percent to 34,795.

The governor did not recommend increasing the welfare grant of $328 a month for a family of three. It has remained the same for a number of years. This family also qualifies for $352 in food stamps a month.

Steve Fisher, administrator of the division of welfare and supportive services, said there has been a drop in the last few months of those on public assistance as the economy grows better.

Assemblywoman Maggie Carlton, past head of the Ways and Means Committee, says that while the economy is improving the “people are getting poorer.” One of the barriers is the minimum wage of $7.25 an hour, if insurance is provided by the employer, or $8.25 an hour if it is not.

“The state is subsiding business,” she said by not paying an increased minimum wage.

“We’re the safety net” to provide medical care, food and payments on welfare,” she said, referring to those receiving minimum wages.

Carlton supports the proposal of Sen. Tick Segerblom, D-Las Vegas, who is sponsoring a constitutional amendment to raise the minimum wage to $15 an hour.

Segerblom said those working at fast food restaurants and in other low-paying jobs are eligible for these state programs. It used to be that young people had these jobs but now it’s older adults who can’t support their families on those wages.

“We should not be subsiding McDonalds,” he said.

His resolution would have to pass this session of the Legislature and again in 2017 and then be ratified by the voters.

Asked if he could get it through the Republican-controlled Legislature, Segerblom replied, “Not a chance in hell.” But he is going to keep on trying.