Raiding step pay raises could turn costly

Not in decades has Nevada tried to save money this way; school districts might be left to pay

NEVADA APPEAL FILE

Gov. Jim Gibbons says because two of the moves the Legislature made this week would not directly affect consumers, they are not tax increases. One redirects money from retailers to the state, another redirects money from the rental car industry.

By David McGrath Schwartz (contact), Cy Ryan (contact)

Wednesday, Dec. 10, 2008 | 2 a.m.

Carson City — If Gov. Jim Gibbons succeeds in suspending step raises for state employees and teachers, it would be the first time in at least 45 years that the state has not paid the built-in salary increases.

The annual pay raises, which average 4.5 percent, are typically granted during state workers’ first 10 years of employment. Doing away with the step increases and cost-of-living raises would save the state about $160 million over the biennium, said Andrew Clinger, the governor’s budget director.

The state has left the step raises untouched since at least 1963.

Nevada faces a $1.5 billion budget deficit for the 2010 and 2011 fiscal years.

Although the call to suspend raises for state employees and teachers could save the state millions, according to teachers union leaders, it might cost school districts millions.

Lynn Warne, president of the Nevada State Education Association, said unions have contracts with county school districts guaranteeing the raises. So it’s possible, she said, that the districts would have to make up the shortfall for teachers.

“Unfortunately, he’s (Gibbons) trying to solve the state’s problems on the back of an education system that has already had to cut,” Warne said. “The fact he’s going after contractually negotiated raises with school districts is outrageous.”

In response to the teachers union argument that districts might be forced to pay the raise if the state doesn’t, Josh Hicks, Gibbons’ chief of staff, said: “We’ve heard those same comments but no actual contracts have been provided to this office so we cannot comment on whether there is any merit to the statement.”

•••

Erroneous charges on agencies’ power bills could be costing Nevada hundreds of thousands of dollars, according to executives with a company contracted to help eliminate such waste.

“Most people treat their bills as the Bible,” says Matthew Berke, president of LPB Energy Management of Dallas, which was hired by the state to find energy savings.

The company will scour the electric, natural gas, water and sewage bills of state agencies to find overcharges.

If an overpayment is found, LPB, which has similar contracts in at least five other states and with private business, will keep 50 percent of the recovered funds.

The state Board of Examiners approved a five-year contract with the Texas company.

Treasurer Kate Marshall said the agreement could save taxpayers as much as $1 million over that period.

For instance, the company found lighting bills for the stadium where the NFL’s Dallas Cowboys play included $51,000 in excess charges, Berke said.

The company will also automate agencies’ billing systems. The company will be paid a flat fee for that work.

“Centralizing bill processing with LPB will save the state up to $20 per invoice in processing costs and yield the insight necessary to reduce ongoing energy costs and usage,” Berke said.

The company will also gather data to see whether energy-saving devices purchased by state agencies are actually reducing costs.

•••

Gibbons signed into law on Tuesday the four bills passed during the Legislature’s special session a day earlier.

A news release announcing the bill signing mentioned there would be no accompanying “formal ceremony.” But Gibbons’ communications director said nothing should be read into the absence of pomp at the governor’s signing of lawmakers’ work to close a $341 million hole in the state budget.

“There wasn’t time to put a ceremony together,” Daniel Burns said. “We were told they (the bills) would be ready and he had an opening in his schedule. It’s just a piece of business we wanted to get out of the way.”

Gibbons signed the four bills in front of a few cameras and reporters, and answered questions. He said this deal provides a “blueprint” for how political leaders in the state could put aside partisan differences to work toward solutions.

Assistant Managing Editor Michael Squires contributed to this report.

Discussion: 13 comments so far…

By 2zero

12/10/08 at 8:57 a.m.

Suggest removal

CCSD needs to do it's job! Teach our children in a safe environment. We heard for years that the colossal monopoly called a school district could not do their job because of "growth"...

Two years of flat growth and the problem is, again, "growth" or the lack of????

CCSD may have entered into contracts with unions, teachers, administrators and more during a time when the excuse for "perks" and pay was we need more teachers because of growth and it is sooo expensive to buy a home and live in vegas.

Guess what...times have changed and homes are getting cheap. CCSD needs to spend what it has to do the job they are responsible for!!! Once the money is gone; FILE BANKRUPTCY and renegotiate all the contracts!

While in bankruptcy reorganization it would behoove our residents and the CHILDREN to break up this colossal monopoly and begin fresh with three or four grassroots school systems!
By KDR81

12/10/08 at 9:11 a.m.

Suggest removal

4.5 percent pay increases are 50% above the average rate of inflation. They've been living the high-life at our expense. Time to cut back.
By jfnance32

12/10/08 at 10:03 a.m.

Suggest removal

It will be up to each county and the unions for those contracts what to do.

They can choose to layoff employees or redo the contracts.

The private sector is getting hit hard with layoffs and no or very little raises at all.

It is time for the government employees to join this struggle. At least for now, they will still have their Platinum employement benefits that absoluetly nobody in the private sector has.
By kramer

12/10/08 at 10:57 a.m.

Suggest removal

If the writers of these articles would provide correct information one would see that teachers do not receive an annual 4.5% increase. The 4.5% increase must be derived from an average of all state employees. If you require proof before spouting off you ill informed statements go to CCSD and review the salary schedule.

Regarding perks and pay, wow what perks that they have received. They received a $200 prepaid card to pay for supplies that can only be used to buy schoolroom supplies for the classroom. Let's cut that out so they can have a lack of supplies to educate with. I hope that your children, if you have any, become subject to your magnanimous ways. For future reference please provide educated responses when posting, otherwise it just goes to further illustrate the point of why teachers should get paid more to educate the uninformed.
By jfnance32

12/10/08 at 11:18 a.m.

Suggest removal

If a state worker works 25 years then they can retire on a large percentage of their salary.

Nobody in the private sector gets that.

State workers get private subidized health insurance in retirement. Most private employees get Medicare and Medicaid in retirement.

State workers get tons of paid days off.

It is very hard to get a state worker fired. There is a dude where there is tons of evidence he stoled from the state. He got 1 year paid vacation. Later he came back, it created a situation where 2 people doing the same job and each were getting paid over $100k each. It turned up that this dude spend prison time in the past for stealing. The county indicted the dude. Guess what? He is back on paid vacation.

Most teachers only work 9 months out of the year.

Nevada teachers are ranked 25th in the nation in salary.

People in the private sector or getting laid-off left and right and there is very little raises if at all. Some are no longer getting 401k matches anymore.

The state should freeze hiring and raises and consider to reduce benefits like time off and retirement contributions.

Raising taxes on struggling businesses will trigger more layoffs in the private sector.
By truthfromreason

12/10/08 at 2:48 p.m.

Suggest removal

As usual, Nancy and KDR need to do their research. If either of you had any clue what teachers make compared to the amount of hours they put into their jobs - not to mention the dedication that most have - you would both be ashamed of your ignorant comments. Teachers are downloading materials off the internet because they don't have books, cannot make copies of handouts to give to students and have to buy all of their classroom materials with their own money. As of now, they are amongst the worst paid in the country, and will move even further down the list. Most capable, experienced teachers know better than to come here. The young ones that do learn quickly that they should not have come in the first place. The classrooms are overcrowded, the students are disinterested and the policy makers, parents and citizens do not value education.

This is just another step in the continued destruction of our education system in Nevada. Just like anything else, you get what you pay for. Nevada ranks near the bottom of the country in every statistical category having to do with education (among other things). Taking pay increases away from an already underpayed workforce will not solve anything. Most of the good educators will simply leave the state, and the Nancys and KDRs of the world (the dying breed of old school conservative thought) will be left to home school their children. That will work nicely though - you can teach them about how government is bad and everything in life is black and white, problems with singular solutions that the free market will correct.

The world is much more complex now than your republican grandpappies taught you. Soon your gov will acheive his goal of "shrinking government" and you will get what you want. Be careful what you wish for though. If you think things in this state are bad now, wait until he is through dismantling it.
By jfnance32

12/10/08 at 3:35 p.m.

Suggest removal

Nevada teacher salaries are ranked 25th in the nation.

You need to go do some research and get your facts right.
By truthfromreason

12/10/08 at 4:23 p.m.

Suggest removal

Right, Nancy. I'm sure your random statistic is right on the mark. I have found several sources that rank their pay much lower. You need to adjust for cost of living as well. Teachers cannot afford to buy a home here, even with the housing prices coming down. Do you know any teachers? I seriously doubt it. Do you know any government employees? Do you know anyone outside of your close circle of like-minded conservative drinking/bowling buddies? I doubt that as well.

Keep up the defense of your dying ideology, and you will find yourself in a much smaller circle of like-minded friends. Perhaps it is time to move out to rural Nevada, you can find more support there. Ask your friend, the gov, if you can crash on his ranch property in Elko county. He won't be needing it for a couple of years. Maybe you and KDR can graze on the property and help to justify the tax break he gets.

I only kid you both, I'm sure you are good people - just mislead.
By jfnance32

12/10/08 at 5:14 p.m.

Suggest removal

OK....lets post our sources and see who quotes from a solid unbias source.

I am guessing you are going to quote a teacher union source or not going to post at all because you realize that you have been caught making it up or you are realize that your source is lame.
By jfnance32

12/10/08 at 5:25 p.m.

Suggest removal

Here is my source.

United States Census Bureau

http://www.census.gov/statab/ranks/rank2...

Even the Teachers NEA Union says Nevada teacher pays is 25th in the nation.

http://www.nea.org/edstats/RankFull06b.h...
By gmag39

12/11/08 at 3:21 p.m.

Suggest removal

47th. That's what I find.
By truthfromreason

12/11/08 at 10:21 p.m.

Suggest removal

As I said, Nancy, you need to adjust for cost of living. You cannot compare apples to oranges - didn't Grandpappy teach you that?

http://cqpress.com/docs/ed7samp2.pdf

To your point though - should we be happy if our teacher pay is ranked in the middle? Why should we not strive to be better in our state? You share the same mentality as the LV C of C, who feels that we need to cut the PEBP because "Nevada's public employee benefits program is among the most generous in the country". So for that reason, we should cut it? God forbid that Nevada rank higher than other states in something. If that happens, we should cut the funding so that we do not risk achieving excellence in any area. It is just a bad philosophy that will perpetuate the decline of our state. You cannot have growth without development, and you cannot sustain an increasingly urban state with a rural government.
By ZeddyBear

12/13/08 at 2:50 p.m.

Suggest removal

"Unfortunately, he's (Gibbons) trying to solve the state's problems on the back of an education system that has already had to cut," Warne said. "The fact he's going after contractually negotiated raises with school districts is outrageous."

Jasonek, Murillo, and the other CCEA honchos will NEVER slap Rulffes and CCSD in the face with a lawsuit regarding step raises. It's easier to turn their collective backs on the contract and teachers. (You see the CCEA honchos "really work" for CCSD and not teachers.) So through a MOU teachers will lose step raises for at least 2 years..... maybe 4 years.... Who knows. Why not ask Jasonek what he will do... and I can tell you right now -- he will NOT fight for teachers.