Where I Stand — Mike O’Callaghan: Moves toward efficiency

Tuesday, Feb. 23, 1999 | 10:39 a.m.

THE NEW GOVERNOR has quickly come to realize that any effort to streamline even his own staff is looked upon by the Legislature with suspicion. In short order he will also learn that the Legislature is willing to give big pay raises to its own Legislative Counsel Bureau, but play tightwad with the governor's staff and budget.

Before moving on, let's have some examples of the disparity in salaries. The director of the LCB Legal Department makes more than $15,000 more a year than the governor's general counsel. The director of research at the LCB makes nearly $25,000 more than the governor's senior policy adviser; the director of administration at the LCB makes $30,000 more than the governor's deputy chief of staff. The comparisons aren't given to take anything away from the very competent people working in the LCB who work exceptionally hard before, during and after every biennial session of the Legislature. This is also true of the governor's staff, but they don't have the long breathing spell between sessions that benefit the LCB staff. Both staffs, for the good of government, must remain top-flight in every respect.

Gov. Kenny Guinn doesn't want a larger salary pot than what he has presented in the executive budget. He does want the power to limit or increase his staff numbers and determine the individual salaries of these nonclassified employees. Very simply, he wants to use some of his money for clerical staff positions for senior staff positions. He's not asking for more money, he only wants the flexibility to use his executive skills and have what he believes will be a more productive branch of government. Why this has even created a cause for alarm on the part of any legislators is beyond me.

Certainly any governmental body that's willing to pay lump sums to private companies doing state work or give hundreds of millions in funds to school districts and not set the salaries for teachers shouldn't be shy about letting the governor handle the salaries for his staff of 23 people. I have to believe Guinn has had bigger staffs and fiscal responsibilities before becoming governor.

Wisely the Nevada Legislature gave Guinn the responsibility of running the almost bankrupt state self-funded health plan that covers 47,000 employees, retirees and family members.

It's just one more example of a state board or committee overseeing funds without direct oversight by the chief executive. Previously the State Industrial Insurance System dug an even deeper hole for itself before Gov. Bob Miller was given direct power to straighten it out several years ago.

This requires the strength of an executive that is much more stabilizing than any committee, board or commission. It should also require that later the controls aren't then delegated to an outside "expert" or group of "experts."

Chuck Musser, a retiree on the program, gives us the following advice to aid in bringing some form of financial health back to the health plan.

Launch a nationwide search for a director of risk management. No one from within risk management should be considered. This department needs outside help.

Consider a public employees insurance board. The Public Employees Retirement Board works very well and could possibly serve as a model.

Self Funded Umbrella Program. All retired public employees should be covered under the same program for medical insurance to create a level playing field for all retirees. Again the example would be how PERB administers the pension fund.

Public Employees Insurance Board Parameters. Consider placing all public employees within one medical insurance system with user agencies also contributing to the funding pool. All agencies are supported by Nevada tax dollars.

Prohibit Contracting Outside Administrator. The track record of outside administrators speaks for itself. They all work only for a commission and maximize those conditions that enhance bigger commissions.

Musser goes on to give several other common sense changes that could be made to help the plan function more efficiently and fairly. He says he is willing to testify before a legislative committee and present all of his ideas.