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June 4, 2012

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county government:

County layoff notices just a ‘prelude,’ commissioner says

Contract negotiations ongoing even though budget was passed

By (contact)

Saturday, May 29, 2010 | 2:01 a.m.

Rory Reid

Rory Reid

Steve Sisolak

Steve Sisolak

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Thirteen Clark County government workers were told this week they will be laid off, the first in what is expected to be 100 or more layoffs in the weeks to come.

The layoffs are the result of lower county revenue from a development tax levied on homes and businesses, and the motor vehicle privilege tax paid when vehicles are registered. Those taxes are the major sources of funding for the Master Transportation Program within the county Public Works Department.

County Manager Virginia Valentine said tax revenue has dropped 40 percent over the past three years. Most of the remaining revenue is paying off debt from major transportation projects, including construction of the Las Vegas Beltway, which has so far cost about $1.3 billion, but still needs $1.1 billion to complete.

Just two of more than 10 planned roadway projects are under construction. In October, Comptroller Ed Finger told commissioners that when those two projects are finished, the county won’t be able to fund another project.

The drop in tax revenue prompted the layoffs of 13 of the Master Transportation Program’s 49 employees. Valentine wrote that another five will not be filled. None of those layoffs will benefit the county’s general fund — the taxpayer-supported portion of the budget — because the positions don’t fall under the county’s general operating budget.

Likewise, the lost jobs are not likely to forestall what county sources have said will be up to 100 layoffs scheduled to take place in the coming weeks from other, as-yet undetermined departments.

“It’s a sign of the economy we’re in,” Commissioner Steve Sisolak said. “It’s a prelude to a lot more to come and, unfortunately, unless we’re going to get a lot of concessions from our labor unions, there’s going to be a lot more of them. Nobody’s bluffing. Nobody’s trying to play games. This is the beginning.”

Not including University Medical Center, the county has held open 1,283 positions and has a total job-vacancy rate of 15.1 percent. After the county implemented a voluntary layoff program in early 2009, 115 employees opted to leave.

Where the additional 100 or so layoffs will come from is not known. County staff are still poring through plans submitted a month ago by department heads who were asked to come up with 8 percent cost savings.

Commissioners predicted layoffs two weeks ago when they approved the county’s 2010-11 budget of $1.26 billion. At the time, Sisolak voted against the budget because it did not take into account any potential savings from union concessions, and it didn’t consider plans for 8 percent cuts submitted by each department.

But Chairman Rory Reid and staff said that although they needed to file the budget two weeks ago to meet a state deadline, they promised deeper cuts were on the way.

“We would have to cut 1,000 people next (fiscal) year” if more cuts were done this year, said George Stevens, the county’s chief financial officer.

All of this takes place against a backdrop of contract negotiations with several unions, chiefly the firefighters and service employees unions. Together, they represent most of the 11,000 workers who work for the county and UMC.

Commissioners are not privy to negotiations, which have gone on for three months.

Reid repeated Friday that the county’s “personnel costs are not sustainable.”

“And we’re continuing to try and convince our employees to help solve this problem,” said Reid, who is running for governor. “We don’t want to be in this position, so just like private enterprise needs to tighten its belt, so does the county.”

Fittingly, county commissioners are likely to vote themselves out of a salary boost Tuesday. Their agenda includes a proposal to forgo 4 percent salary increases scheduled to kick in July 1.

This would be the second year in a row the commissioners, whose annual salary is $73,971, have passed on raises.

Another hoped-for cost saving measure on the board’s agenda is to extend the length of an employee furlough program through June 30, 2011. Since last July 1, furlough time has added up to 34,382 hours — that is, time off without pay — for savings of $1.3 million.

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