Sunday, May 30, 1999 | 11:55 a.m.
CARSON CITY - In a surprise move in the last few hours of the session, the governor announced Sunday that thousands of state workers would get a 2 percent pay raise next year.
Flanked by Senate and Assembly leaders, Gov. Kenny Guinn announced the hike for all state employees, except teachers and university professors, starting July 1, 2000. The $8.5 million cost is covered partly by budget cuts and partly through higher than expected tax revenue, he said.
Senate Majority Leader Bill Raggio, R-Reno, said legislators didn't want to see state employees go without a raise.
"University instructors have a 2 1/2 percent increase available in merit increases and teachers have the ability with collective bargaining to bargain for increases," he said.
Bob Gagnier, executive director of the Nevada State Employees' Association, offered qualified support for the proposal.
State workers wouldn't turn down the raise, but had hoped for another step increase for the 44 percent of workers who are at the top of the pay scale, he said.
The raise particularly benefits some state corrections employees, who will get it in addition to a 5 percent raise for prison employees working in outlying areas.
Guinn faced a revenue shortfall for his first budget as governor, and had not planned on pay raises in his initial plan. But Guinn said he'd change that if the state's economy showed an upturn, which a recent report demonstrated.
In other 11th-hour action Sunday, the Senate approved a bill authorizing the Department of Prisons to lease the state prison at Jean to a private company or another state or federal agency. The Southern Nevada Correctional Facility at Jean is scheduled to be mothballed for four years to save the state money.
Pete Ernaut, Guinn's chief of staff, says the state would save $10 million by laying off some employees there and moving the rest, along with all the inmates, to a new prison at Cold Springs.
Director of Prisons Bob Bayer said the move isn't a step toward privatization of Nevada's prisons.
"Yes, it would be 'private,' but it wouldn't be our staff that was privatized. I have no intention to do that," Bayer said.
The governor would like the state that leases Jean to pay for the much-needed improvements to the facility.
Bayer said the lease would specify that the facility would be quickly returned to Nevada if the state needs space for its inmates.
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