Guinn: State has $500 mil. in trust for those left jobless

Wednesday, Sept. 26, 2001 | 11:08 a.m.

Guinn's speech

Gov. Kenny Guinn is scheduling a statewide address about the economy.

Chief of Staff Marybelle Batjer said Tuesday the address, to be broadcast from the governor's office, is tentatively set for Thursday.

Guinn will talk about the economy and resources available to Nevadans laid off as a result of the economic downturn, Batjer said.

CARSON CITY -- Gov. Kenny Guinn said Tuesday the state has more than $500 million in a trust fund to help workers who have lost their jobs as a result of the recent economic downturn.

Also on Tuesday, Guinn informed the Legislative Interim Finance Committee that he has placed a freeze on the hiring of 87 new employees; the new state jobs were to become effective Oct. 1. Guinn has made exceptions for essential positions -- public safety jobs, for example.

However, no plans exist to call a special session of the Legislature or dip into a $130 million "rainy day" fund, Guinn said.

Senate Majority Leader Bill Raggio, R-Reno, said the Legislature will join Guinn in curtailing spending. He said partisanship will fade as the state seeks to protect its financial position.

About 5,000 people, most of whom work in Southern Nevada, filed claims for unemployment benefits last week; the average is 2,700-2,800 per week.

Claims can only be filed via telephone and callers must wait almost 50 minutes for service; the previous wait was eight to 15 minutes, said Guinn.

To help relieve the crunch, the state Division of Employment Security is buying additional telephone lines and is hiring additional workers. The division will remain open until 7 p.m. on weekdays. It also will be staffed Saturday.

"We are well positioned to take care the people on unemployment," Guinn said.

The $500 million could last for nine to 10 months, the governor said. Last year the state paid out $200 million in jobless claims. The average weekly check is about $200; the maximum allotted is $301.

The Employment Security Division on Sept. 9 will conduct a test on the solvency of the trust fund, financed by employers' contributions. The advisory council to the division meets Oct. 19, when it is scheduled to decide whether the monthly rates for businesses should be increased to ensure enough money exists to cover payouts next year.

The economy "is wounded, but we're not down and out," Guinn said.

He said the administration has worked with the Internal Revenue Service to help tip earners who pay taxes based on their incomes during the previous year. He said the IRS has agreed to "readjust the tax to real income" this year, when tips for hotel and casino workers are lower.

Guinn is talking with bankers to determine whether people who lose their jobs can develop a payment plan so that they don't lose their homes or cars.

State officials also are speaking with HMO executives about extending health insurance for workers who have been laid off.

The administration is also examining the possibility of helping families who had been receiving welfare benefits, found work, but were then laid off.

When these families left public assistance, they lost many benefits, Guinn said. Now that they have lost their jobs, he said there may be a possibility of providing them waivers for child care and other benefits.

Turning to the state's budget and the possibility of lower tax revenues, Guinn said he is keeping vacant 1,400 positions in state government.

In addition, Guinn said he is considering a delay in spending for "one-shot" items, such as computers. Guinn said this could save $15-$20 million in the short-term.

Still, Guinn said he won't delay an allocation of $4 million to help low-income people pay energy bills.

Regarding Nevada's economy, Guinn told lawmakers the state, based on its dependence on tourism, has been hit as hard as any other. Occupancy rates at Las Vegas hotels reached 70 percent this past weekend. This is up from 60 percent during the weekend after the attacks in New York City and Washington.

The occupancy rate this time of year in Las Vegas usually is 100 percent, Guinn said. Las Vegas has lost more than 240 conventions since the attacks, although none scheduled for November have been canceled, he said.

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