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Las Vegas Mayor Oscar Goodman said on Jan. 7, 2010, that the 8 percent salary and benefits cut the city’s so-called elective and appointive employees have agreed to take in lieu of layoffs won’t take effect unless the city’s employees represented by union contracts agree to do the same.
By Dave Toplikar (contact) 
Thursday, Jan. 7, 2010 | 1:15 p.m.
Sun Coverage
Proposed pay cuts in lieu of layoffs for Las Vegas city employees will be an "all-or-nothing" deal, says Las Vegas Mayor Oscar Goodman.
Although 298 non-union Las Vegas city employees who are in so-called executive and appointive jobs have agreed to take an 8 percent pay cut and make other concessions to avoid layoffs, union employees would have to do the same — or the deal is off, Goodman told reporters at his weekly press conference today.
"We're asking everybody to come to the table," the mayor said. "We can't force them to. But it's going to be an all-or-nothing proposition. This is a global deal. And the 8 percent that the appointives and the electives gave up, they will not be held to that, if, in fact, everybody doesn't go along with the program. We're not going to ask one group to suffer while others won't play the game. So we're going to wait to see what happens."
Because of falling tax revenue, the city expects a shortfall of more than $400 million over the next five years, according to City Manager Betsy Fretwell.
On Wednesday, Fretwell told the City Council about the plan to make the salary and benefit cuts and the council approved the plan, which she said would save about $3 million. The council approved the plan, contingent on the labor unions going along with it.
"The folks who agreed to the 8 percent reductions, they did so voluntarily," Goodman said today. "They got together, they voted on certain proposals and that was the bottom line. That was critical to us, because I think it set the standard as to what is the right thing to do."
Their pay cuts and other concessions would go into effect July 1 — but only if the four labor unions representing the city's other employees do the same, Goodman said.
"We can't force somebody who has a contract to change the contract," Goodman said. "... The only way we're going to be able to resolve the issue, in my opinion, is to cajole and convince those who are working for us under contracts that they should open up the contracts and do whatever they can to make sure that somebody who is lower down in the employment totem pole will be able to keep their job."
If the unions don't make concessions and the city can't balance its budget, then layoffs will continue.
"We have no choice other than to lay off," he said. "And that's a sad way of doing business, but that's the way the law is."
Goodman noted that over the years, the collective bargaining process has "created a monster."
When the city and the unions couldn't agree, they went to arbitration, he said. During those years, the city wasn't able to show its ability to pay, which was irrelevant to the arbitrators, who sided with the employees in raising salaries and benefits, Goodman said.
"From the moment I was elected, I was told by smart people in the finance department that there would come a time when income will not meet expenses," Goodman said. "We never dreamed that it would be now."
Goodman said he was interested in resolving the budget problems in a way that is "smart" and "nice."
"But it takes two to tango and let's see if we're going to tango," he said.
Goodman said union leaders have invited him to sit in on two meetings next week by one of the unions, so he can report back to the City Council.
Asked about a deadline for making the concessions, Goodman said the city is now "in a state of exigency at this point."
Every month for the last two years, the consolidated tax revenue that feeds the city's budget has been taking double-digit hits from the year before, he said.
"It's not going to have a happy ending," he said. "It can't have a happy ending because people will be hurt along the way, either by reductions in what they've been taking home, or by losing their job. We'll see how it plays out. I'll try to be as fair as I can be."
The collective bargaining and negotiations with the unions needs to be open to the public. The public should also be allowed to comment and give input before anything is approved. The people of Las Vegas are fed up. The current situation is unsustainable. We do not have anything against the employees but we understand that we must be fiscally responsible. In the real world thats the way it works. The government is bankrupt. In business if you go bankrupt you take pay cuts. Public employees are not immune to the reality we live in.
So we can assume Oscar is going to take A paycut too and hold off on his new city hall right??
Exactly JD. I do not think it is the answer to cut the pay of 300 employees just to save $3 million. Cut the $3 million from an unnecessary road project or the city hall.
Everyone should go along with this deal because if they are too stupid to see the long term benefits of having a job instead of the short term money, then it's unemployment land for all!! Do the right thing people..
Well you know, if this budget business is in such terrible shape, I think an 8% cut is justifiable. Justifiable from the Mayor on down. In fact, he is such an astute general perhaps he should cut himself an additional 2% just to show his allegiance. What do you think Mr. Mayor?
I love Oscar's style. Blunt and to the point. More politicians need to be like him!
Didn't the city council just throw $2 million more to the Mayor's pet project, the Mob Museum?
Lead by example.
Hold off on the city hall and take a substantial pay cut himself.
Actually VC the contract is public record and is voted on by the city council in an open meeting. You were probably to busy with your nose in someone elses business to notice.
I think it should be noted that while we all read these articles about public employees breaking the bank, why hasn't our metropolitan police department been called out in this discussion? 40% of the city's total budget goes to metro. No questions asked. The county picks up the other 60%. Interesting to note that the city is on the hook for 12 million dollars this year for the NEW police headquarters at Alta and MLK. How many cops do you think are making 100k a year? Most of them is the answer. There are 3000 officers in the valley. Do the math you bozos. The real money flows to metro. Not only do they have no governing body to answer to. They also reap the harvest of millions of Homeland security dollars they receive annually in the form of grants.
The new city hall needs to be scrubbed immediately!
No if's and's or but's about that!!
If the city had to call for pay cuts, then they can not justify a new city hall and will have to make do with what they have.
Also how many on the Las Vegas city council are taking pay cuts?
My guess is none!
So do you really expect people to follow people who can't give it up as well, but expect the common man and women to give it up?
I would like to know how a city the size of Las Vegas can get into the hole for $300M?????????
Doesn't anybody reconcile their checkbook in the city?
The first people I would fire would be the book keepers as it is obvious they failed miserably!
Then I would get rid of the council as they are not cost effective to begin with.
And so it begins. The same dilemma is being face by many city, county and state governments. Sooner or later they each have to go to the unions to get concessions from them. The days of exxagerated revenues because of easy credit and outlandish property values is over.
It's awesome that city employees need take pay cuts amounting to $3million just a few days after the City Council was generous enough to "quietly" approve $2million for a Mob museum.
Not to mention funding for the new City Hall, but that's on another episode of the Jerry Springer show.
Let this be a small glimpse into the mayors dream of Governor. Build a new 350 millon city hall in the worst economic times, then, turn around while ink dries on the loan and ask the city workers to pay for it. better watch out in Carson City, Ol "fuzzy math" Goodman is coming your way!
Okay Sufferin....let the layoffs begin!
It's time to merge Las Vegas proper with the rest of Clark County. It's just another middle man eating up revenue. We've got double courts, double fire, double administration, etc. Of course, can you imagine the national headlines; "Las Vegas wipes itself off the map."
Either that or I demand that Paradise Township gets to be its own city. We've got the airport and a large portion of the strip. A major new source of revenue could be charging Hendersonites to use our stretch of the 93 or the 215.
http://en.wikipedia.org/wiki/File:Paradi...
I am curious to see if Oscar actually sticks to his guns.
sufferin'succotash, RIGHT ON.
These moronic "leaders" like Gov'ner Gym Gibbons & "The King of Las Vegas" Oscar Goodman are going at this the WRONG WAY.
You cannot tell these people to bear ALL THE BURDEN of the economic shortfall. It's ALL OF OUR obligation, NOT just government employees.
And yes, it's absolutely histerical that one day we give 2 million to the "Mob Museum" project, and the next day take it out of the pockets of city workers!
jr99...
Oscar has no guns to stick to. He's got his hat in his hand, and he's doing his best to beg some cash out of one pocket to stash in another pocket.
Of course we also have "The King's" palace to pay for... $350 million will buy a pretty nice
"Oscar Goodman Building", as I am sure The King assumes it shall someday be named!
And the price of oscars palce keepd growing. If i'm not mistaken we were told it would cost 150 million initially, now its doubled???
"From the moment I was elected, I was told by smart people in the finance department that there would come a time when income will not meet expenses," Goodman said. "We never dreamed that it would be now."
Goodman said he was interested in resolving the budget problems in a way that is "smart" and "nice."
UUHH, EXCUSE ME..WHEN DID YOU THINK IT WAS GONNA HAPPEN, 100 YEARS FROM NOW - IF YOU KNEW IT, YOU SHOULD HAVE STARTED WAY BEFORE THIS.
AND RESOLVE THE PROBLEM BY BEING SMART AND NICE? ITS BEEN A LONG TIME THAT YOU SHOULD HAVE GOTTEN MEAN AND TOUGH! LOOK WHERE IT GOT US..GGEEZZ
these executives & appointives did not have a choice....dont pretend this is a benevolent act.
furthermore, this article does not report that betsy fretwell wants to slash salaries w/o a guarantee of jobs. the mayor is INACCURATE to state that 8 % cuts will stave layoffs.
the union can not negotiate with that position. what management wants to do is slash salaries AND fire people. this is a lose-lose proposition for the union.
the clv is top heavy ....how many deputy city mngrs are needed, and a cfo?
city employees are well compensated. but many hold degrees and advanced degrees.
I think city employees would concede to demands IF they were promised jobs - this is not the case. why give up 8 % if u may not have a job tomorrow?
JD -the cost of 350 million is at the end of the loan when all payments are made with interest. The 150 is if it were purchased straight up cash. Its interesting to note as well that while the first 7 years of payments are small and do not come from the general fund, The 8th year balloon payment of 12 million is straight out of the GF, meaning if the economy has recovered geues who gets their pay cut again?
I agree with Amy that the story is not accurate.
The city is not promising "no lay-offs" if the unions accept back-to-back 8% pay cuts (8% this year and 8% next year). In fact the city manager has said that there will be lay-offs no matter what.
Also the executives are not taking a 8% cut. It is more like a 5% cut if one does the math.
The fire fighters union is the key. If they do not accept cuts then the other union that represents the bulk of the city employees will not accept cuts either. They got burned last time by going first. They are not going to be suckers again.
Another thing that really bugs city employees is that the new city hall will have very little employee parking (I am not sure if there will be much of any public parking either). Plus it will have less working space.
If the economy does not turn around then the new city hall deal will collapse and the city will either have to significantly increase taxes or layoff or cut salaries even more of city employees.
Oscar Goodman and his merry men/women have absolutely totally screwed up city hall. It is fiscal incompentence to the nth degree. They are taking risk that will most likely end up on the losing end and will crush the city even more.
There is no way in hell that Goodman should be governor.
Exhibit A of Goodman's fiscal incompetence...his own words..."From the moment I was elected, I was told by smart people in the finance department that there would come a time when income will not meet expenses,"
Hmmmm.....you admit you were told of this problem would occur...and you DID NOTHING FOR ALL THOSE YEARS.
You really want to be governor?????????
We'll have to take an 8% wage cut regardless of how this pans out. Whether it's through wages or furlough. I have a chronic disease and as much as I absolutely hate to say it, the insurance is very much needed and the city pays for it!!
It's true, the union should agree to two furlough days each month. That's about a 12% reduction in payroll expenses.
The reporters at the RJ and Sun are really dropping the ball when it comes to reporting on extra unnecessary budget items. They should focus on Metro, middle/upper management, capital projects, and the Fire Department. Instead they focus on slamming the unions.
There's a job opening for a part time policeman in Boulder City. Guess how much the job pays? $14.07 per hour.
Nance, er...rock, I agree with you. Goodman is a
clown, and is as qualified to be Governor Of Nevada as, well, Gym Gibbons. Or Euell Gibbons, for that matter.
And the Mob Museum is the biggest boondoggle to be foisted upon the populous since the Monorail.
"I love Oscar's style. Blunt and to the point." just like a gangster.
I say we fire the whole bunch of them and start over. City Managers earning a half a million per year with benefits all the way down to the janitor.
Just fire the whole bunch
Why should Oscar care if city employees lose their job or rights to representation when this whole city and state have let Steve Wynn steal the dealers tips to give his supervisors a raise and Harrah's Corporation has a monopoly on so many properties in Las Vegas that they continually break the law with only a slap on the wrist. At this time, the dealers at Caesars voted in union representation 2 years ago and only ask for status quo, however, Harrah's has declared impasse and are robbing them of their right to their tips, vacation time, seniority and any other thing they can think of to punish them with for going union. When will anyone stand up to these greedy corporations that are taking the food out of our mouths and let us put in back into the economy of our city and county?
You know I love baseball, and thank God we didn't finance a baseball stadium! I like Oscar. His personality is good for Las Vegas, however his hard nose approach to laying off employees is unacceptable. Oscar has millions...he doesn't need money, therefore, it's real easy to lose perspective of the worker, private or public who are middle class wager earners. If we had a mayor, who was paid $75,000 per year, he would most likely be more in touch on what jobs mean to people. People with money should not be in power. The only incentive to work when you have lots of money is for the power and celebrity status. Same goes for County Management and Commissioners. People who are complaining of government employees salaries are either laid off, or about to be laid off. They want to see others be in the same situation as they are. That's not a good approach to this economic dilemma!