Facebook
Fark
Digg
Reddit
Stumble
AP Photo, Cathleen Allison
Danny Thompson, a lobbyist for the state AFL-CIO, speaks Monday, Feb. 14, 2011 at a rally in front of the Legislature in Carson City.
Tuesday, Feb. 15, 2011 | 2 a.m.
Sun Archive
- Tax proponents turn to unemployed for support (2-13-2011)
- Labor leaders: Tax hike among options to boost construction jobs (2-11-2011)
- Mothers make plea for state to save early childhood program (2-11-2011)
- Sandoval’s budget relies on at least one fee increase (2-10-2011)
- If lawmakers unwilling to raise taxes, others are ready to take the initiative (2-9-2011)
- Committees ‘not afraid of anything,’ even the T-word — taxes (2-9-2011)
- Four state budget scenarios — none pretty (2-6-2011)>
- State budget plan heavy on cuts, light on solutions (1-25-2011)
Beyond the Sun
Sun Coverage
Democrats in the Legislature have railed against the effect of budget cuts on schools and universities, people with disabilities and people without jobs. But they have stayed conspicuously silent on one of Gov. Brian Sandoval’s cuts — his proposed 5 percent whack at state workers’ pay.
That’s an ominous sign for all public-sector employees in Nevada — not only the 30,000 state workers, but the other 100,000 state and local government employees.
The Legislature has no direct control over most employees of school districts, higher education and various local governments. But lawmakers’ actions on state workers and local budgets will almost inevitably roll down to those employees.
State workers protested in front of the Legislature on Monday, claiming they will shoulder a disproportionate share of the budget burden if Sandoval has his way. The event, organized by the American Federation of State, County and Municipal Employees, which represents state workers, drew about 50 people.
Speakers, including Senate Majority Leader Steven Horsford, praised state workers, said increases to tax revenue should be considered, but none directly opposed Sandoval’s 5 percent proposal.
Since the beginning of the Great Recession, public employees have seen varied effects on pay and benefits. Below is a guide to what has happened, and what might happen.
State workers
Past:
Legislators and former Gov. Jim Gibbons decided to go ahead with a scheduled cost of living increase of 4 percent in 2008 despite warnings of a downturn.
Since then, state workers have suffered the most from falling tax revenue.
Legislators replaced Gibbons’ proposed 6 percent cut with a monthly furlough day equivalent to a 4.6 percent pay cut although pensions are held harmless. Employee costs for retirement and health benefits have risen also.
Judicial employees didn’t take furloughs; legislative employees are not taking furloughs during the four-month session.
Future:
Sandoval proposed a 5 percent cut for state workers, suspending step increases and merit pay. The pay cut, which would replace the furloughs, would also affect pensions, helping the state save about $90 million.
State Sen. James Settelmeyer, R-Minden, whose district includes Carson City, said “I still think furloughs are more appropriate, but that might not happen.”
Higher education
Past:
Some university employees, such as maintenance staff and administrative assistants, had to take the same furloughs as state workers. Nontenured professors also took a furlough.
But tenured faculty were protected by contracts. The administration asked these employees to take an “equivalent” of 4.6 percent by increasing their workload. How these are done can vary and there have been complaints about inequity among higher education faculty.
Dale Erquiaga, the governor’s senior adviser, said Sandoval has received a number of complaints about tenured higher education faculty being spared furloughs.
Future:
Sorry, professors. The Board of Regents this summer passed a new rule: The governing body can cut tenured faculty pay up to 6 percent if the state orders a similar cut to its employees. Nevada System of Higher Education Chancellor Dan Klaich, who worked with faculty leadership to pass the regulation, has warned the system is in danger of losing its best professors.
K-12 (teachers, administrators, support staff)
Past:
There are 17 school districts in Nevada. Each bargains separately with employee associations.
In 2009, after the Legislature passed its budget, the Clark County Education Association approved a contract that maintained “step increases,” raises based on years of service and education. Critics said the union was choosing its members’ pay over students.
Last year, Clark County agreed to a freeze in most step increases.
Washoe County educators also froze most step increases and took two furlough days.
Future:
Starting with Sandoval, and echoed by legislators, there is growing drumbeat for teachers and other school employees to take some type of pay cut. Sandoval’s administration says 70 percent of the cuts it has proposed to school districts could be absorbed through employee pay or benefits.
Clark County School Board President Carolyn Edwards said it was difficult to know what kind of concessions the district will ask for until it sees what the Legislature passes.
“I’d like to see all our employee groups make concessions,” she said. “What those are we don’t know yet.”
She said if unions don’t make salary concessions, a bigger part of the budget will be layoffs.
Local government
Past:
Local governments have a mishmash of employee associations and unions with which they negotiate. Employee groups in Clark County and the cities have made some concessions, suspending or lessening pay raises or cost of living adjustments.
Future:
When business groups such as the Las Vegas Chamber of Commerce complain about public-employee pay, they are not talking about state workers, or even teachers. It’s primarily local government employees who rank among the best paid in the nation compared with other states.
The abuse of sick leave by some Clark County firefighters is just the latest sign pointing to some sort of reckoning for local government employees. As the state prepares to take money from counties, local government employees will feel the squeeze as contracts are negotiated.
Why the difference between the state and local government employees? Local government employees have collective bargaining rights. If there’s an impasse in negotiating a contract, it goes to an arbitrator.
“Obviously, what happens at the Legislature will affect local governments,” said Rusty McCallister, president of the Professional Firefighters of Nevada.
State workers are not exempt from the current financial meltdown, nor should they be. A 5% cut is better than a 100% cut such as my wife took nearly 2 years ago when she was put on an "on call" basis. Since then, she's worked in fits & starts and has collected unemployment benefits, also in fits & starts. There is no way we can plan a budget since we have no idea, from week to week, exactly how much money we will have to work with. So, while I may sympathize with state & local workers having to take pay cuts, I think they are appropriate considering the state's budget crisis.
To call yourself lvfacts101, you should be capable of more sound logic than suggesting that, because your wife was laid off, public employees should therefore also have to suffer. Why not automatically conclude that, because your wife has been laid off, the governor and legislature have an obligation to create a more broad-based revenue stream for our state. If fairness is what you really seek, demand that the mining industry pay a fair share of their outrageous profits.
Gotta resolve the source of revenue problem. Can only cut services so far. Given the current climate of reduced service there will be NO new businesses coming into the state. Unemployment will remain as the number one in the nation.
The sad truth in this situation is that our Government and big business that has created this economic tragedy is standing back and letting "we the people" pay the bill to fix their mistakes.
Somehow you wonder, if they wouldn't have started the ripple effect with the economies, would we ever have faced the tidal wave of greed that we have just witnessed?
Ballancing the state budget on the backs of the state workers will not work. First you can't squeeze enought money from salarys to fill the budget shortfall. Second you will probabily get mass early retirements that will stress the retirement system. State workers will lose 5% in wages and the health insurance costs will go up another 5%,the new plan will provide very limited coverage, workers will get no more stept increases or merit pay. When all this dosen't ballance the budget what's the next stept?
Politicians should cut and freeze their pay. Why did they run for a Federal or State job anyway? It can't only be for their salaries, could it?
A furlough, lost 2 steps, no annual pay increase, medical up, lost dental. The last couple years has been more like a 20% cut for many State Workers. And my wife lost her job too. Nice. Well, I'm not upside down in my home so if I keep getting kicked too hard I'll leave Nevada or find a better job because I have skills and can pass drug tests.
The economic structure of the world has changed which is forcing the federal and state governments to respond differently than in previous recessions.
Globalization as well as national and state debt has collared our old model. Our economy is driven by productive and profitable business. The recession will drag on until we see top and bottom line growth in business.
More debt doesn't move us forward, it further restrains us. HOW DO WE BECOME COMPETITIVE GLOBALLY WITH OUT MORE DEBT? Answer this question and we start to move forward.
you need to increase revenue - hmmm, it is called taxes and fees
Come on Dems do some RESEARCH. Eliminate exemptions to sales and use tax. NRS 372.270 EXEMPTS MINES FROM SALES AND USE TAX. NRS 372.320 exempts OCCASIONAL SALES / PURCHASES-- an individual can buy a huge piece of mining equipment and lease it to mines with no tax paid. FIREFIGHTERS BUY THEIR PRIVATE AIRPLANES SANS TAX.
Chancellor Klaich is right that one problem with pay cuts, and the elimination of step and merit raises -- and especially the drastic cuts in health benefits - will be faculty retention. The most talented assistant and associate professors are already on the job market or being courted by schools in other states. Higher education in Nevada will suffer a serious brain drain, further damaging an already critically wounded and impaired university and community college system.
Worse, Classified Empoloyees, who earn far less -- some in the mid to low 30s -- who have already given back 4.6 percent via furloughs, will suffer the most. Very few who have the skills and talent to find other jobs will remain as workers for the state. Stories are emerging about some state employees with unforeseen health problems now forced to borrow from family members in order to afford food because of cuts in benefits; a few have lost their homes and are sleeping in their cars. Most others are so stressed by overwork due to staff cuts in departments that their jobs have become nearly impossible to perform.
Citizens of Nevada need to ask the question: do we want any quality at all in our education system? Or in service to "no new taxes" and making the rich even richer than before, do we wish to sacrifice the opportunity for our best and most earnest young people to improve their lives through education?
Governor Sandoval appears to have made his choice: toss the youth of our state into the trash or force them to leave Nevada to better their futures.
Now it's up to the legislature to decide either to go along with his plans to balance the budget by cutting education more drastically than in any other state or to find the courage to diversify our revenue base and, yes: raise taxes so as to invest in and build Nevada's future.
Although I agree that it makes sense for things like step increases to be frozen in the current economic climate, it does seem like government employees are being hit particularly hard just because the legislature has the power to do so. A 4.6% furlough cut last year, 2 lost step increases, 2-3 lost merit increases, and increased insurance costs and reduced medical/dental coverage translate to pretty hefty "taxes and fees" on workers who the state can directly influence. Add another 5% permanent pay cut on top of that, and you'll begin to see the adverse effects pretty quickly.
DouglasUnger brings up some excellent points in his post above. We can't express a desire to have a top-notch system of higher education and then try to attract and retain talented higher education faculty by cutting their pay, etc. The big problem is that the lower-quality faculty aren't mobile, so they'll sit still in Nevada and stay with NSHE while the most talented faculty will have options elsewhere and will begin to leave in droves.
Nevada needs to find ways to invest in the future, and continuing to cut salaries and benefits of our K-12 and higher education faculty is regressive, not progressive.
lvfacts101,
Cutting employee salaries might 'fix' the budget a little. But cutting salaries usually means a reduction in consumption too. In a depressed economy a cut in discretionary spending of 1-2% will be enough to wipe out any growth.
To put it this way, if John's income is cut 5%, he will cut his spending by 5%. The cut in spending inevitably affects someone else and then someone else.
But I have to say your response is very petty that because your wife has lost her job then everyone else should suffer too.
This is only fair if you make all private corporations reduce their profits by 6%, since state workers ALSO pay private corporations out-of-pocket for goods and services received.
Cutting state workers pay by 6% (on top of last year's 4.6%) is the equivalent of imposing a 6% tax increase on ONLY state workers while expecting them to still provide every other Nevadan the same level of services.
Meanwhile, the services that private corporations offer, state workers still have to pay for at full regular price out-of-pocket. If a private company is not making money it is because they are not providing services. That is the fundamental difference and why this tapping into state worker's salaries for revenue--that benefits the entire state--but having them produce the same workload is purely exploiting state workers.
The fair (but unpopular) approach is to raise taxes for EVERYONE in the state. Do not hammer only state workers (for another 6%) to benefit ALL Nevadans... unless you also make all private corporations reduce their profits by 6% to even things out. Both concepts are equally absurd.
Firefighters are buying their private planes without paying any tax. REPEAL NRS 372.320.
The Nevada constitution authorizes a university in Reno. ELIMINATE HIGHER ED FUNDING everywhere else. Why are we PAYING DOUBLE FOR K-12 when compared to Europe. Why can't our teachers teach our kids to read and write?
Mr. "LvFacts",
I'm sorry to hear that your wife lost her pay completely, and I'm also sorry to hear that you feel myself and my colleagues deserve a pay cut over cutting money from people WHO GIVE BACK NOTHING. I myself don't feel that it is gratifying to take take take while I sit on the couch and TAKE more. There are many people who take advantage of Unemployment benefits and go way to far with the "poor me I can't find a job after two years" (I can say this because my mom is one of those people). And to those people, YES THEY DESERVE TO HAVE THEIR BENEFITS CUT.
You sir, will also be sorry to hear when you call or walk in expecting a service from the government employees (you know, the ones you feel deserve a substantial pay cut) that we won't be able to serve you in the best way possible because of lack of funding.
Have a nice day :)
Its easy for Danny Thompson (AFL-CIO) to stand on the steps in Carson City and yell, but how much does he make and has he taken a pay cut. The AFL-CIO are crooks they take their members dues and squander it on campaign of politicians. THe AFL-CIO are trying really hard to get the democratic government in Washington to bring up a bill to use tax payers money to guarantee their pensions. All the AFL-CIO is after is tax payers money. Public service is not about salary and benefits, its about serving the public. When the budgets and resources are not their, they must do what it take to maintain the budget without raising or asking the tax payers to carry the burden. City, county and state budgets are ran mostly by the tax payers, public servant cannot hold the tax payers hostage. When times are good public servants feel they deserve a raise but when times are bad, they don't want to sacrifice nothing. THat is not how it works. THis is America, if you don't like your job quit and move on, there are plenty of others who would love to take your place. I worked public service for 32 years, pay and benefits never entered my mind, I accepted what my pay was going to be, my job was to serve the public, the same people who paid my salary.
I am proud to ride into this in Doug Unger's wake, and I would like to add a couple of things.
One, the state of Nevada relies heavily on regressive taxes such as the sales tax. Cut pay to save at one end, and how much does revenue drop at another end? I do not pretend to know the answer, but I know that if I am paid five percent less, I will buy less, and others will suffer as a result while, somehow, the mining industry continues to extract wealth and take it elsewhere.
Two, when the system instituted pay cuts last time, I suggested to a couple of people that the cuts should be graduated. Yes, it would be terrible for anybody's pay to be cut. But an administrator or even professor who makes in the six figures can absorb a cut far more easily than an administrative assistant or beginning faculty member at CSN. Naturally, nothing came of this.
Life is not fair. Play the cards you were dealt. Oh, the dealer changed? Look at the big picture for solutions. We cannot afford 15 million illegal immigrants. If the Obamas and Reids won't deport them, INSIST ON DEPORTATION. CUT OFF BENEFITS TO ILLEGALS AND ANCHOR BABIES. GO AFTER EMPLOYERS. Boycott casinos and restaurants that don't speak English in their kitchens--our 99ers need jobs or they face abandonment and homelessness. 25-35% of K-12 is for illegals. BILL THE FEDS AND DEPORT ENTIRE FAMILIES. Stop free emergency medical services at UMC--deport the illegals getting free dialysis. We CANNOT AFFORD MEDICAL CARE FOR EVERY SICK HISPANIC. We have an obligation to American elderly and unemployed--not to teach English at CCSD schools in small classes.
The firefighters pay plenty of sales taxes, buying the Lexus, or Mercedes, the boats and large SUVs.
There are many people who take advantage of Unemployment benefits and go way to far with the "poor me I can't find a job after two years" (I can say this because my mom is one of those people).
***
Statewrkr:
Guess what, kid? Mom probably CANNOT find a job!!! Since she obviously has an adult child - YOU - she is no spring chicken. That means she is being discriminated against in many ways from employers who feel she is too old to hire and is too young to get social security. So she is in a very difficult position.
You afraid she is going to ask YOU to help her a little????
My mom IS NOT looking for a job.
She is one of many who has the mentality of
"Why work when someone is always going to be there to bail me out"
Meanwhile its people like her that drink all day until they end up in the hospital and force medicaid to pay for her bill :)
AWESOME ISN'T IT?? I should really feel sorry right?
Not saying that it's easy to find a job - I do have sympathy for those who can't and are honestly trying. They're the ones who deserve help.
Cutting pay and freezing wage increases are a stop gap with little wise thought into the future of Nevada. Pay can be cut as needed. However additional options need to be given to retaining employees. The pay cuts are disproportionally high on new state employees. A state worker of one to two years is working along side a worker at the state and county in the exact same classification who make 5 to 55 percent more then them. Sure they are working. But these are motivated individuals who find work in difficult times. Will they stay at the job or in this state for long? Should the state pay to train these workers to see them go to county, private and out of state jobs? There is an expense to high turn over. Am I the only one who sees this in banking? The time it takes to process a short sale or refinance is effected by high turn over, have you noticed? Do teachers leave frequently in Nevada? DMV has worked hard to provide service with noticable success. Do we want to see our government services take longer and become filled with mistakes? Add some hidden fee on in the last hour of the session to help retain good government workers and I will pay it. I suggest a fee for speeding over say 90 miles an hour coming into vegas/lake tahoe/reno. Only for those who are not pulled over by NHP. The camera can include advertising to pay for itself.
We don't have a deficit because we pay too little in taxes.....we have a deficit BECAUSE OF OVERSPENDING!
The taxpayers did not create this deficit, the politicians did. They need to fix it without raising any taxes, period!
Full time pay for elected state politicians should be tied directly to the average base pay for first year teachers in the state. I guaran-god damned-tee that Sandoval and the other pols would "find" the money to provide for adequate pay for teachers if their own bottom line depended on it.
Tax mining at an equitable level. Establish a lottery dedicated to funding education. Many problems solved.
Nevada for years has prided itself on being a low tax state for businesses. It is quite obvious that this posture hasn't worked to lure new businesses here, and has only served to harm many thousands of middle class Nevadans.
It is time to stop robbing the poor to pay for the wealthy.
It goes without saying "all salaries" should be frozen,no matter who you are or what position you hold.Included in that freeze are merit raises,promotions,bonus' and OVERTIME.You can't make decisions on what needs to be cut until you can see the REAL BOTTOM LINE. Fat Cats like the police and fire who routinely pad their salaries in order to get out early with a fat pension need to be looked at first.No one, but no one should be exempt,from the Governor down.This town needs to really wake up to the fact this is not business as usual.It will never return to the "good old days" they're gone.Las Vegas and the state have been riding high up to a few years ago.Now our elected officials have to really buckle down to what they were hired for and make some "very thoughtful and careful"decisions about the route the state will take.Our future depends on it.At the VERY BOTTOM of this hit list...should be the teachers.Education,especially in Nevada should be at the VERY TOP of priorities.I'm tired of all the lip flapping going on.One side blaming the other...NEWS FLASH!! they're ALL to blame for the shape we're in right now.
roseanrose: "Why are we PAYING DOUBLE FOR K-12 when compared to Europe." You've made this claim in the past and I've asked you to back it up with some proof. I'm asking again for proof. Please provide a link.
"Why can't our teachers teach our kids to read and write?"
Funny. When I was teaching, some of my students learned how to read and write and some didn't. I'm not in the classroom anymore, but do have little ones of my own. My kindergartner reads at a minimum a second grade level and writes at that level as well. It's apparent that I can teach reading and writing, but that didn't necessarily translate into all of my students being successful. How is that my fault (or any other teacher)?
It's because of uncontrolled Over-Theft by all the Political Entities from Far Left to the Far Right for many, many years.
Of course, the Truly Rich Elites (or Entities) will do nothing to help the cause of the people because they still want more and the politicians are lining up with elbow and knee pads to be in their crooked graces. You all just need to keep being loyal and brave slaves, I mean, SOLDIERS and tote what ever line given to you (careful because the line is very, very delicate).
Hey, You (we) are the only ones who actually do the building, rebuilding, and all the manual labors to keep the Society going, which ever way it goes.
Wait few more years or a bit more before the untrolled Over-Theft comes up again (maybe next time you could take a bit of that Over-Theft crumbs) .
SO, save your monies (and hide it), take care of your family and friends, and always be on alert against all who has their hands out ready to take your money.
We have many issues in the state, and it is time for Nevada old laws and ways of doing business to be updated. It is time for Nevada to invest in its future instead of hoping that the old status quo is going to work. We need to tighten up our ship, create new policy, and generate new streams of revenue. Let's take a look at some of the major issues:
1.
A. K-12 Education: Contrary to what the public knows, the Education world realizes that it needs wholesale changes. They have some amazing ideas that come from teacher input, as well as research in higher education. The problem is getting policy changed in order to generate change. We do have some amazing and bright minds, these students take honors, AP, and IB academic programs and do well. Our problem lies in the general education which is probably 60-70% of our student body. There is waste that needs to be leaned out at the administrative levels. The classroom levels are vastly underfunded. There are not enough textbooks for each child to have one. Teachers are now not allowed to give a child anything less than a 56%. If you are going to penalize teachers for under performing students, you better be able to prove that the child is getting the support it needs at home first. (You can bring a horse to water, but you cannot make them drink). Why not add fees to under performing parents?
B. Higher Education: Tuition has had a greater inflation percentage than almost anything else in our country in the past 10-15 years. Nevada will not attract any out of state students if we continue to raise our prices. Out of state tuition is a nice revenue stream. Most people that bash higher education are have no clue how higher education works. When a university is focused on research education, the faculty teaching load is reduced to allow time for research. Research grants generate revenue for the university. So if you continue to cut faculty pay, the good researchers who bring in revenue will move on to another institution. To the best of my knowledge, most of the professors did not chose to work at UNLV because it is such a great institution. It was because of a good wage and to live in Las Vegas.
UNLV is desperately trying to become a research institution to prove it is as good as UNR. UNLV does not meet the needs of the community by doing this as undergraduate education drops. After UNLV decided to raise its admission requirements, it cut out a big percentage of Nevada's students who were then forced to go to CSN. Then Nevada State College @ Henderson opened. UNLV needs to get over itself and its competition with UNR, and drop its admission standards and combine with Nevada State. This will expand the higher ed funding pie, allow UNLV to cut its funding with all the research, and allow access to a greater population base.
"Establish a lottery dedicated to funding education."
California did that exact thing in the mid eighties and guess what......they spent the money elsewhere, and continue to do so.
The California Lotto was created to forever solve the state's education funding problems, and of course it has done nothing to improve it.
2. Tax Revenue
a. It is time to revise some of our outdated laws and revise them. Tax base system needs to be revised for Nevada's current state. Everyone should pay there share.
b. Spread the tax around. Currently, only state workers are being taxed. Make private business earn their tax break. Give private business a tax break IF they hire and create job growth. Otherwise private business will will just essentially pocket what the state workers have to pay in tax.
C. Increase revenue from the brothel industry. It is time to bring this industry up to speed. We all know it happens in Vegas and Reno, and we waste money with trying to enforce laws and task force spending while they are not paying a tax on it. Legalize it, and make it safer for the girls and patrons. Allow the casinos to set up a shop as well, this way they will pay more tax, but will have an additional revenue stream, and another service that no other Casino Resort can offer. This will stimulate tourism.
D. Legalize and tax marijuana. It is easier for our kids to get pot than alcohol. Alcohol and cigarettes are worse for you than pot yet they are legal. We are wasting money on the war on drugs. We can then let pot offenders that are in jail out, which will save the state money. Tourism will increase as well. Fund education through it.
"Everyone should pay there share."
You know who doesn't pay their fair share? The poor. They utilize all of the government assistance programs but they do not contribute their "fair share" to them.
It's really the middle class that always pay more than their "fair share" and the middle class is getting tired of it!
Noindex, if you became one of the poor there'd be no complaints...right? Why don't you spread the wealth? I'm sure that there are millions who would appreciate some help. Oh, you're too good...
The politicians screwed it up, so cut the state workers pay to compensate for it, but leave county, education and other municipalities alone, as well as gaming and mining. yeah, makes alot of sense and it's really fair.
A 5% cut in salary. Beats a 100% cut in salary everytime. That is what not having a job does.
Barrett, I was one of the poor. I never received a handout from any government agency, family or friend.
My only point is I'm tired of hearing the phrase "pay their fair share". If that was really the issue then we would have a flat tax where everybody pays the exact same tax percentage regardless of income......which is something any "fair share" proponent should support.