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Opinion
May. 25, 2008
Copyright © Las Vegas Review-Journal

EDITORIAL: Raises on the chopping block

Governor correct to put public-sector pay on the table

Each month brings a familiar cycle in Carson City: tax collections fail to meet levels projected by the 2007 Legislature, and Gov. Jim Gibbons reduces spending accordingly. Now, after cutting more than $900 million from Nevada's two-year budget, Gov. Gibbons has put one of the state's most costly and generous appropriations on the chopping block: a 4 percent pay raise for state workers set to take effect July 1.

If the state's March revenues are as bad as officials expect them to be -- exact figures will be released soon -- Gov. Gibbons will consider calling a special session of the Legislature to reduce or eliminate the raise, which would cost taxpayers $130 million next fiscal year and become a compounding expense in the years beyond.

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    • That Gov. Gibbons is weighing such a course is encouraging. Most state workers are already in line to collect "step" pay raises of about 5 percent this summer as a reward for an additional year of service. Most senior employees who have "topped out" on their pay scales collect longevity pay based on the length of their employment.

    Coupled with the step increases, the 4 percent "cost-of-living" raise -- which has no relationship to the Consumer Price Index -- would allow most state workers, including teachers, to pocket pay raises of roughly 9 percent at a time when the taxpayers who support them are dealing with reductions in their income as a result of layoffs, schedule cuts and increases in health insurance premiums.

    Lawmakers and public employees cannot argue with a straight face that Gov. Gibbons has already cut Nevada's budget "to the bone" when, far from facing a threat to their job security, many state workers are about to enjoy a nearly double-digit pay hike.

    That said, a special legislative session should be an absolute last resort for the governor. Aside from the fact that even a brief special session would cost taxpayers nearly $100,000, there is some question about the governor's ability to limit the subjects lawmakers would be permitted to address. It's not unreasonable to think that lawmakers with different ideas about how to handle the state's budget deficit could initiate all sorts of political shenanigans and extend the special session by days, or even a week.

    Fortunately, legislators would have one incentive to take care of business quickly: they can't accept campaign contributions from the time the governor calls a special session until 15 days after its conclusion. Early voting for the state's primary election begins in about two months, so lawmakers would much rather be out in their districts, pressing flesh and collecting checks.

    If tax collections continue their downward trend and Gov. Gibbons determines a special session cannot be avoided, he should take two precautionary steps to cover his bases. First, he should make certain he has enough votes in the Assembly, where Democrats loyal to public employees have a commanding majority, and in the Senate, which Republicans control by a single seat. Second, to apply pressure on lawmakers reluctant to reduce state workers' raises, he should provide specific budget-cutting alternatives. If the Legislature won't rein in public employee compensation amid an economic downturn, Gov. Gibbons must detail how many workers will be laid off and which state programs will be eliminated instead.

    A predictable amount of squealing is coming from the Clark County School District, but instead of the teachers union leading the cries, it's Superintendent Walt Rulffes. On Wednesday, he said the 4 percent raises were set in stone, and that if lawmakers rescinded even part of it, the district would be obligated to cover the difference through massive cuts to student programs. Such an argument essentially holds that the legislative branch of government has no control over the state purse, and that private-sector wealth is fundamentally the property of public employees -- they're just letting us keep some of it out their benevolence.

    The Clark County Education Association was scheduled to ratify its 2008-09 contract, which includes the 4 percent raise, on Saturday. The contract still must be approved by the Clark County School Board. How can the school district be on the hook for a pay raise its own board hasn't even authorized? If the board's vote is strictly symbolic, why does it exist in the first place?

    Mr. Rulffes' suggestion that 9 percent pay raises for most of his district's employees take precedence over school resources is indicative of the disconnect between bureaucracies and struggling taxpayers. These are hard times, and state workers might very well have to ease the burden on the people who provide their paychecks.



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    Sam King wrote on May 29, 2008 12:46 AM: After reading the editorial,Raises on the Chopping Block , I am disappointed in the fact that the author decided to vilify state employees in an attempt to prove why state employees do not deserve a legislated cost of living raise which was approved by the governor during a very different economic climate. I fully understand that there are serious problems with our state and national economy. There should be a review of revenue and state expenditures since things have changed since 2007. Hopefully during the special session there are better arguments than simply creating villians. Hopefully we see a session where elected officials have dialogue, invoke oversight, find opportunities for equitable solutions and compromise. The job taken on by our elected officials, whether they serve as a part time legislator or a full time governor, requires that together they produce a budget which meets state obligations that support the quality of life Nevadans understandably hope to realize. This includes budgeting for state employees. I do not envy any elected officials particpating in a special session in this climate. Given the tone of this editorial, the voice of reason and civility may be difficult to achieve let alone any solid budget solutions.


    CAS127 wrote on May 27, 2008 10:59 AM: "That only last for the first 7 years of a teacher's career."

    Interesting - we've always wondered how the teachers union recouped the artificially deflated starting salaries of teachers (the sacrificial lamb that is used to create the Big Lie that teachers are "underpaid").

    Now we know.

    The annual step salary increases are used to rapidly juice the salaries up to the median.

    Thanks. Now we know. One less hidden trick from the unions.


    CAS127 wrote on May 27, 2008 10:55 AM: "The simple truth is that state employees make far less than their city and county counterparts."

    Then help the free citizens snap the back of their lying unions.


    kevin wrote on May 27, 2008 10:37 AM: Speaking of irresponsibility - there is no question that the editorial staff responsible for this article is part of the manipulative machine of Nevada Government. Finger pointing definitely increases in times of fiscal weakness. The simple truth is that state employees make far less than their city and county counterparts. We're simply a very unhealthy state and will continue to be as long as editorial staff writes irresponsible and politically manipulative articles.


    Frank wrote on May 27, 2008 08:48 AM: I love how the author of this editorial acts like state employees are getting rich of the taxpayers back. Comparatively rate the income base of a state employee to a comparable private employee. Even in middle and upper management, there is no comparison. Yet they must be living the high life on the public's dime. Right. That's why all the teachers I know come from dual income families, then, right, because they make so much money? And the step raises. Better check your facts before you suggest how many public employees get those. And while you are looking at that, take a look at how performance raises are able to be given in the public sector and again, compare it to the private sector. You may change your mind about your editorial.
    So here is a novel idea...manage spending and, for heaven's sakes, Republicans, don't be afraid of slight tax increases when they are justified to maintain public expectation of their government's services.


    Fra wrote on May 26, 2008 03:02 AM: The author of this editorial has no idea what he is talking about, does he? He really needs to get his facts straight before reporting. What a jerk wad!


    Adam Carpenter wrote on May 26, 2008 12:26 AM: Thank goodness for Unions and collective bargaining.........if you don't have it, I suggest you get it!


    Jim wrote on May 25, 2008 06:11 PM: Get your facts straight RJ! County workers have collective bargaining and have been taking everything they can get since they have had it. State workers do not have this right and thus must depend on the Gaming Cronies (legislators) for any hand out. During the Millers administration, we went years with NO increases after topping out. Ask your counties to look at their spending then see, who has been fleecing Nevada.


    I have an idea wrote on May 25, 2008 02:43 PM: Just shut the schools down. Look at the savings, salaries, buildings, planning and construction. Those that want to or have the money can home school after they get home from work.

    Within five years we will be like a third world country. Then when they take over, you whiners can argue with them. I doubt they will listen.


    Travis wrote on May 25, 2008 02:20 PM: Great idea TimeRanger. I'm sure the taxpayers wouldn't mind footing the bill for webcams. I can guarantee it would cost much less than a single day of a special session. The best part, we wouldn't have to pay it again either.


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