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CORRECTION -- 04/12/08 -- An editorial Thursday incorrectly reported that state Senate Minority Leader Dina Titus, D-Las Vegas, had proposed issuing bonds to cover some of the state’s budget deficit. She proposed shifting revenues from bonds already issued for capital projects.

EDITORIAL: On the chopping block

How long can pay raise for state workers be off the table?

Just when Gov. Jim Gibbons thinks he has cut enough spending to balance the budget, the state's fiscal picture worsens. From $200 million to $400 million, then $600 million. Last week, the two-year revenue shortfall was estimated at $898 million, and by Monday it had reached $910 million.

New programs have been axed and major construction projects have been delayed. The state's $267 million rainy day fund will be drained. Operating budgets are, for the most part, intact.

"One thing we are dedicated to and that is not digging further into the operational budgets," Gov. Gibbons said.

This is the correct approach. The governor has resolutely refused to increase taxes, an especially bad idea amid a struggling economy. And thankfully, it doesn't appear that Senate Minority Leader Dina Titus, D-Las Vegas, will get anywhere with her idea to float bonds to cover some state spending and put taxpayers in the red for years to come.


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  • Gov. Gibbons and the state's legislative leaders, who met again Wednesday, seem to have the situation under control. But there are 15 months left in the current budget cycle, and an economic rebound might be a year or more away. There remains a strong possibility that Gov. Gibbons will have to make even more cuts before the Legislature convenes in February.

    "If we have to go in and cut again it will be bad," Sen. Titus said. "There is nothing left to cut but operating budgets."

    That means the governor might have to reconsider one expense he has declared off the table: the 4 percent pay raises for state workers and public school teachers scheduled to take effect in July. The raises will cost the state $130 million next fiscal year.

    It's hard to justify the raises, promised when the economy was strong, when many taxpayers have seen their incomes drop -- or their jobs eliminated. Moreover, many state workers are already getting so-called "step" raises, some as high as 5 percent, which are handed out for each year of employment regardless of performance. When these "step" increases are combined with July's scheduled 4 percent hike, the result in some cases can approach a double-digit raise in a single year.

    It's possible the state will be confronted with the choice of reducing or eliminating the pay raise or laying off hundreds of workers. Which would state employees rather have?

    If Gov. Gibbons has to make additional cuts to state spending, state worker raises must be on the table.



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    John wrote on April 30, 2008 10:22 AM: DMV,should bring back sales tax on secondhand vehicles.Test books should be sold $5 each,people grab handful's.!!Drive test's 1st free no pass,second to be paid for,$20 for everytime after.Written test $5 each test,after 1st fail.Vin inspection $5.Driving Licence $25.Offer Baby Boomer's,(that are waiting to retire) Part Time with Benefits!!!.They give everything away in the DMV.Doing all of the above would bring our Budget up,so Hard working State worker's,would be brought up to the City and County Worker's..The job turn over is great at the DMV,because they have to know so much,and put up with so many Angry people,and get paid so little.SOMEONE PLEASE HELP!!!


    Tina wrote on April 11, 2008 07:56 PM: My comment is in regards to the following statement..

    "Moreover, many state workers are already getting so-called "step" raises, some as high as 5 percent, which are handed out for each year of employment regardless of performance. "

    I am a state worker and just wanted to inform readers that the above is not an accurate statement. The so-called step raises are not simply handed out to state workers. First of all, there is a cap to the step raises. It doesnt go on forever. Secondly, for an employee to rceive a step raise they have to, at minimum meet a certain work performance standard. And as a state worker I can attest that this is not a simple task. We work very hard to serve our public. That is the truth.




    sam king wrote on April 11, 2008 04:30 PM: Cost of living raises seem to always be off the table for public education. It is true that these are depressed economic times. However, attracting and retaining qualified staff to teach our students has always been a challenge. A this point in time when utilities, groceries, ad the cost of gas has eaten up much of the promised 4% raise, it would be a poor decision to take away the legislatied raise. 4% was not an excessive raise for teachers and other eduction professional educators during prosperous times-- not even cost of living. The attempt to compensate public educators on the cheap is not sound when claiming to support education. I agree with Mr. Moffat in the fact that I too an insulted when the RJ continuosly attacks state and all govenment workers. The purpose of govenrment is to do that which individuals can not to effectively themselves-- public education and corrections qualify as services that should be valued not insulted.


    Randy Moffat wrote on April 11, 2008 12:52 AM: As a Corrections Officer who has worked for the State of Nevada for 20 years, I feel higly Insulted by The repeated attacks on State Workers by the Review Journal.
    First, Very Few People Work at the Same Job for 25-35 Years to earn a decent Retirement, instead they Switch Jobs every few years for Higher Pay, better Benifits, etc. The Few State Workers who Actually make 20 years deserve everything they currently have.
    I work at my Job for 8 hours a Day, without any breaks, Dealing with 200 Convicted Criminals Without any help. I have to Drive 140 miles a Day Round trip, costing me 20-30 Dollars in gas a day, and that's going to get much more expensive.
    We recieve merit increases ,yes, but only for the first few years, and then NOTHING, unless the legislature gives us a Pay raise. People in the Private Sector earn as much as we do, yet continue to get Pay raises EVERY YEAR.
    We are 30-40% below the Pay of North Las Vegas, Metro, Henderson and even Wackenhut pays as much or more then the State does. Yet we have to Do the Same Job regardless of shortages. Currently, We are at about 60% of the required Staff, yet still we have to do our jobs, and then some, and it's only going to get worse.
    We Have no collective Bargaining, or right to strike Like the Private Sector Does, State workers have little as it is, except a Decent Retirement plan for those who can tolerate Impossible and Oppressive Working conditions for 20-35 years.
    What Benifits we have, we have earned through hard Work FOR the People of the State of Nevada.


    John F wrote on April 10, 2008 09:17 PM: Peter S.,

    I was going to make that point but you beat me to it. Also, don't forget that tax rates are higher now then they were in 1995. Remember the Guinn tax hike the RJ editors are still apoplectic over? If you factor in the hogher tax rates, we are taking in far less tax money per capita now then we were in 1995 in real terms.


    Peter S wrote on April 10, 2008 07:08 PM: Chris,

    Good Job! But,

    1). Inflation! westegg.com tells us what cost $1,714 in 1995 would cost $2,369.10 in 2007. So that looks like spending per person is pretty close over eight years...but that is spending per person, NOT revenue.

    2. Go back to 1980 and do revenue per person.


    auditor wrote on April 10, 2008 02:25 PM: Chris

    Question...what 'persons' were they spending the increases on?


    Randy wrote on April 10, 2008 11:57 AM: Gibbons needs to start with a 50% cut in his pay and pass it along to all elected and appointed state executives.

    But he probably won't do this, and we will see a typical Republican in action.


    CAS127 wrote on April 10, 2008 10:05 AM: RJ, you just don't get it.

    That raise is part of the "bought votes" compensation that keeps our current corrupt system of government in place another pathetic day longer.

    20% of the populace have sold their votes and loyalty to the political elites who manipulate society to their advantage.

    Messing with the annual salary hikes/tax kickbacks might derail the grubby little(?) system and expose the fact that modern government is really basically about two political mafias fighting over the protection racket money.


    Chris wrote on April 10, 2008 10:04 AM: Since this is an article about the state I looked up stated numbers at

    http://controller.nv.gov/CAFR_Download_Page.htm

    State Government Spending Per Person in Nevada

    1995 = $1,714
    2000 = $2,060
    2005 = $2,434
    2007 = $2,633

    Question, in what year was revenue per person higher?


    Answer, 2007


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