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STATE WORKERS: Pay raise could be repealed

Governor considering special session

CARSON CITY -- Gov. Jim Gibbons is considering calling a special session of the Legislature to repeal at least a portion of a pending 4 percent cost-of-living raise for state workers, university employees and teachers.

Soon-to-be-released tax revenue numbers for March will likely determine if such a move is necessary.

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  • "We're waiting for those quarterly numbers to come in," said Ben Kieckhefer, Gibbons' press secretary. "But we're not ruling anything out, including a special session."

    The report is expected early next week. Taxable sales have been weak in Nevada for the past several months.

    The 4 percent cost-of-living pay increase is set to take effect July 1. But one state government source has indicated that Gibbons is interested in cutting the cost-of-living raise to 2 percent, saving about $65 million to help balance the upcoming fiscal year budget.

    Repealing the entire raise for all employees would save the state nearly $130 million, according to figures from the state Budget Office. Nearly $91 million of the total is for teacher pay increases. The remainder would go to state and university employee pay increases.

    If the taxable sales numbers and other revenues in the much anticipated report are on target with revised estimates, then the pressure to call lawmakers in to repeal the raises would lessen at least for the near term.

    A one-day session, which Legislative Counsel Bureau Director Lorne Malkiewich said could be accomplished with relative ease in late June, could potentially generate much-needed revenue to keep the state budget flush with cash.

    Only the governor can call a special session. And the governor can also limit the topics of the session.

    Even with the $900 million-plus in cuts and savings already made in the current two-year budget, the state is short another $31 million already, primarily due to bleak March gaming numbers that came out earlier this month.

    A bad March taxable sales report, which will also include revenues from other quarterly taxes, has the potential to make that number significantly worse.

    Of special interest in the report will be the quarterly real estate transfer taxes and the payroll tax numbers.

    Assemblywoman Sheila Leslie, D-Reno, said lawmakers are eagerly awaiting the report as well. She said one number circulating is that the report could push the state's newest shortfall to $40 million, even higher if the news is worse than expected.

    "No legislator wants a special session," she said. "But we are definitely waiting for the March numbers."

    About the only easily obtainable large source of revenue -- minus further cuts in state and education operating budgets -- is the 4 percent raise that lawmakers approved in June, well before the state's economic condition deteriorated.

    The cost-of-living adjustment, which was 2 percent this year, is not the only pay increase state employees receive. There are annual "step" increases of 5 percent awarded to employees for continuing to work for the state. And long-time employees who no longer get the step increases instead get longevity pay based on their years of service.

    Malkiewich estimated that a one-day special session, if it dealt with only a couple of simple topics, would cost about $80,000. Most of that would be the expense of lawmaker pay, per diem and travel. Each additional day would cost about $40,000.

    A session could be put together before the start of the 2008-2009 fiscal year which begins July 1, when the raises would otherwise take effect, he said.

    Lawmakers could take the opportunity during a special session to quickly approve the use of the state's $267 million rainy day fund to keep state government running, a decision already agreed to by Gibbons and lawmakers. Otherwise the fund cannot be tapped until the Legislature is scheduled to convene in its regular session in February.

    Lawmakers likely would want to act quickly if a special session was called. A ban on accepting campaign contributions would be in place from when a proclamation calling for a special session was issued to 15 days after the session ended.

    Lawmakers are in the middle of election season with a primary scheduled for Aug. 12.

    But there is a risk. If lawmakers are not in agreement to rescind the pay increase, or if some other political dispute erupts, a simple and successful special session could be jeopardized.

    University of Nevada, Reno, political scientist Eric Herzik said he wasn't surprised to learn lawmakers would like to avoid a special session.

    "Politically there are no good choices," he said. Either lawmakers reject cutting state employee and teacher pay while private sector workers suffer from layoffs and job slowdowns, or they agree to cut the pay of a "large and active group of voters," Herzik said.

    It is also easier to sit back and criticize Gibbons, who is required to make cuts and balance the budget, than weigh in and take responsibility for cutting pay or programs, he said.

    Contact Review-Journal Capital Bureau reporter Sean Whaley at swhaley@review journal.com or 775- 687-3900.



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    GottaLoveIt wrote on May 27, 2008 08:47 AM: If you belong to S.N.E.A. you are used to getting screwed. They take your money and do nothing for the state worker, NOTHING! How many times they failed to step up to the plate - this will be one more time. Perhaps members should quit S.N.E.A. and it would offset (a little) the loss of the cost of living raise 'promised' last year. I remember when Gibbons first took office, he approved spending money like it was going out of style, now he cuts the throats of his state workers! Hey Jimmie send out another letter next year, proclaiming state workers day and thank us "For all we do" and tell all State workers how much they are APPRECIATED


    Cheated &Disgruntled Emplyee wrote on May 25, 2008 08:58 AM: Taxable sales have been weak,because gas prices are to high. Why does the working man have to pay for someone else's mistakes? I vote to take the 267 million out of the rainy day fund, If it's not used for our 4% than what will it be used for? Saving 65 million! we didn't spend it, but we'll have to pay for it. Gaming is down because gas prices are up. The deterioration is not our fault, it's the governments, thier the ones that want to make money and forget about the people and thier children and thier childerns children. That's fine that Gibbons has a job to do. Does that also mean that when he approves something that he can go against the people, take it back just to cover up someones mistakes. If he's going to cut the already promised 4% for state employees, that will not help with the long term. We need a more appropriate long term funding solution. Gaming is not it nor is tourism due to excessivly high gas prices. Nobody is traveling to gamble.
    If the state can afford 2% than the state can afford 4%. Elvis Gibbons and Zed both also have valid points.



    A State Employee wrote on May 22, 2008 11:41 AM: Reading this article made me realize that the information contained herein is not necessarily accurate. It was indicated all employee's receive a 5% step increase annually. This is not true. Each job classification in the state has a "top out level." Therefore, if your position has reached the upper level of the pay grade, you may never receive another raise. This is especially true if the cost of living raise is cut. If the cost of living raise is repealed, these employee's will not receive any raises. Additionally, a closer review of the longevity pay should be made. Many long time State Employees receive a couple hundred dollars for longevity compared to our local government counterparts. Further research should be performed before articles such as this one is printed. Get the facts straight!


    Leslie Wright wrote on May 22, 2008 07:55 AM: Maybe Governor Gibbons SHOULD reduce teacher pay and put the 65 million dollars that he is saving Nevada into prisons that we will eventually need. Cheers to all the morons that voted for Jim Boy. Way to go!


    Whateverusaydear wrote on May 21, 2008 11:21 PM: Unfortunately, when you have a vital state agency like parole and probation or public safety agencies, you run into other significant problems that can affect the community.

    It's easy to say if you don't like your job, quit: we'll replace you with someone who will work for less to replace you.

    Be sure that some vital state employees ARE looking elsewhere. If it's DMV, so what: just wait in line longer or use the internet. On the other hand, if it's public safety...

    Do people remember that there are apparently inadequate supervision for sex offenders in Nevada, as well as not enough (parole and probation staff)to adequately supervise the current crop of probationers/parolees? What happens when that particular caseload is not supervised - who suffers? How about possibly the COMMUNITY at large (not tracking sex offenders, new crimes, etc.).

    Who gets hurt (or worse) on the way? You? Your loved ones? Your pocketbook?

    Did everyone just "ignore" outahere's post?

    A common reaction in a state budget crisis is to just not fill vacant positions... if necessary personnel leave for other better paying jobs who do you think you will get to replace them in a hiring freeze?

    If you can't properly train officers because the classes needed can't be held to train/certify officers, and your seasoned certified officers take off for better jobs, how will you replace them?

    If people are not properly trained, who's ultimately paying the bill for liability? Do you just plug in undertrained/inexperienced staff and hope for the best where public safety could be concerned?

    If any of you posters have some substantive data that shows that during this budget crisis the public is adequately served, please share it.


    Disappointed Teacher wrote on May 21, 2008 11:14 PM: Why isn't the public up in arms that teachers once again have their promised pay raises possibly cut? The public really needs to stand up and say they disagree with the governor's decision. When we can't pay rent, feed OUR families ,and scrap by year after year, our only recourse is to leave Nevada. When is enough, enough? Give us the raise we were promised. We already lost our state insurance for retired teachers this year. How many times can you kick a dog before he doesn’t get up anymore? Oh, the longevity pay that the article implies will tied us over is only
    $ 500 a year for my 14 years of service. For the private sector employees that receive Christmas bonuses-------aren’t you jealous????

    Signed,
    Teacher of 14 years in CCSD
    ( maybe in my 15th year the public will appreciate us )


    JL wrote on May 21, 2008 10:25 PM: "Yeah everything is going up at a fast pace(gas & food) and it does cost more to live. But the wages are also a lot higher than in the early 90's."

    You need a course in economics, buddy. Salary increases have not kept up with the rate of inflation. That is true across the board not just in the public sector, well, except for oil executives.


    Jill wrote on May 21, 2008 10:22 PM: "there are annual "step" increases of 5 percent awarded to employees for continuing to work for the state."

    This is absolutely, categorically untrue. I received a $1,300 step increase last year and I'm a degreed professional. How about when you top out? You get absolutely no raise except the cost of living increases which are so far behind the rate of inflation, it's ridiculous. Where does the RJ get this stuff? Has the reporter actually ever spoken with a state employee?


    Sad Summerlin wrote on May 21, 2008 10:02 PM: Millionaire --- I am sure the State won't refuse any extra money you would like to send them to outlay your costs...

    Travis - Are you aware of the amount of Teachers the California school districts are having to lay off due to budget shortfalls? I would imagine California pays a bit better than Nevada, but they are not facing a shortage of teachers...

    I would also assume that the taxes Californians pay is quite a bit higher than here in Nevada and so they should be able to fully fund schools right.... hmmm... maybe it is a different problem then?

    As to all you state employees complaining about what we would think standing in your food stamp line or welfare window... watch it... I would be thrilled if you were put out of a job and didn't have to pass out those stamps or hand outs... maybe then we could pay our teachers more and our deadbeats less?

    If it is too tough to be a State employee, please do find work elsewhere... I am sure someone else will take the line at your welfare window for less money and be happy about it in these times... Long service means very little in the non-government role... if the company isn't profitable, cuts are made... and the same is happening here... Just ask the 400 managers let go by MGM...

    It's tough all around people, time to tighten the belts and quick whining...


    Elvis Gibbons wrote on May 21, 2008 09:32 PM: It is seriously time to look at recalling this governor. While that will not reduce the so called shortfalls in tax revenue - it will in the very least put someone else in office that has read a book or two.


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