Here in Las Vegas, it’s all green and it all spends

Maybe the Obama administration was trying to make it up to us?

In 2009, President Barack Obama took heat from Las Vegas officials when he discouraged bailed-out companies from using that newfound cash for a Las Vegas junket. “You can’t go take that trip to Las Vegas or go down to the Super Bowl on the taxpayers’ dime,” Obama said.

A year later, he repeated the idea, saying a Vegas vacation was a bad idea if you’re paying for it with college savings. “When times are tough, you tighten your belts,” he said. “You don’t blow a bunch of cash in Vegas when you’re trying to save for college.”

After both remarks, local political and business leaders were outraged. How dare the president discourage Las Vegas tourism in a recession!

In fact, Obama wasn’t saying anything of the kind. He was saying spend responsibly and use disposable income to party in Sin City. And doesn’t our casino industry encourage only responsible gambling?

But now, the administration is dealing with the aftermath of the very kind of irresponsible spending the president warned about: An $823,000 General Services Administration convention at the M Resort that spared no expense to entertain government workers. Two-story suites, $44 breakfasts, clowns and mind readers, $7 sushi rolls, $147,000 in airfare and — my personal favorite — $130,000 on pre-conference “scouting trips.”

Is there still a job scouting locations for GSA conventions? Because I’d like to apply for that. And I’m very thorough.

After a GSA inspector general’s report detailed the over-the-top spending — “minimizing expenses was not a goal,” it said — two top officials were fired and Administrator Martha Johnson resigned in disgrace. But the real damage may occur if the controversy discourages anybody from holding a government meeting in Las Vegas in the future.

Forget the M and the “Petite Beef Wellington.” You could stay at the Motel 6 and eat at Denny’s and still not avoid congressional scrutiny.

U.S. Sen. Harry Reid, who criticized Obama for his previous comments, was quick to defend Las Vegas, although he allowed that the GSA demonstrated a lack of common sense. But asked if the incident would hurt Las Vegas tourism by keeping federal agencies from scheduling events here, Reid said no. “Las Vegas is the place everyone wants to come,” Reid said. “That didn’t hurt anything.”

I’m not so sure: The GSA’s new acting administrator, Dan Tangherlini, quickly canceled conferences similar to the one held here. And you can bet that other government agencies are growing increasingly wary about conferences, as House committees vow to investigate the GSA event.

(Reid told the Review-Journal that one would-be investigator, Rep. John Mica, should “get a life” and pass a $109 billion Senate transportation bill instead of investigating the GSA.)

Las Vegas Convention and Visitors Authority spokesman Jeremy Handel told The New York Times that our city doesn’t encourage frivolous spending. “We are always happy when people choose to visit Las Vegas,” he said. “However, we’re even happier when people choose to visit responsibly. Taxpayers need to know that their money is being spent wisely, no matter where that is.”

That may be the company line, but it doesn’t ring at all true. In reality, Las Vegas doesn’t much care if the money pouring in comes from bailout funds, college funds or federal funds, so long as it comes pouring in. To the casinos, $823,000 conferences mean jobs, profits and dividends, and in the end, that’s what really matters. That’s why Las Vegas was angry at Obama in 2009 and 2010, and it’s why the city is nervous now.

Forget the company line. In Las Vegas, it’s the bottom line that counts.

Steve Sebelius is a Review-Journal political columnist and author of the blog SlashPolitics.com. Follow him on Twitter (@SteveSebelius) or reach him at (702) 387-5276 or ssebelius@reviewjournal.com.