Monday, June 16, 2008

Nevada’s Budgetary Issues

So it’s official. The nation’s least-effective governor has finally called for a special session of the legislature to deal with the state’s fiscal crisis. On the front-end, I really do believe that the reason the Governor finally called for a special session was due to the Textgate Scandal and the fact that the RJ published a poll showing the Governor’s approval ratings in the sewer. He wants to change the story. However, given that our Governor has not done anything substantive and has literally danced while Rome (or Reno, I get the two confused) burn, a special session is necessary to create sound fiscal policy for the next fiscal year so that things aren’t any worse by the time the budget is ratified.

The agenda, as I understand it, is specifically to talk about suspending Cost of Living Adjustments (COLA) for the upcoming year. Also on the list is how to stabilize the budget for the next fiscal year. This isn’t as easy as it sounds. There may be legal ramifications to this, as contracts with the various labor unions may guarantee that the raises go through, forcing the money to come from somewhere else.

While suspending raises is not popular, I’d rather see raises suspended than see layoffs in vital services. Having worked in the private sector my entire career, suspending pay increases is not uncommon. When I worked at ClientLogic, annual increases for salaried employees were suspended or deferred for three years during financially lean years. In addition, they suspended matching funds for our 401(k). Sure, it is a demotivator, but at least you still had a job.

What I would like to see is some sound fiscal policy come out of this special sesson. I’m not holding my breath that it will, but I can still hope. These are tough times for Nevada. Real leadership is needed. I don’t care that it’s happening in the middle of a campaign or if the Governor is calling the session just to change the subject. My call to Speaker Buckley and Sen. Majority Leader Raggio is to do what is difficult and do what you were hired to do – legislate in the best interest of the State of Nevada.

3 comments:

LoraLoo said...

Being a State employee, I'm all about giving up my raise temporarily to prevent layoffs. In my 18 years I've gone many a year without them before, and I'm not starving because of it.

Mind you my pay scale is way below city and county employees with equal positions due to this, but hey... at least I still have a job!

Ken said...

Lora, I was interested in your take on this. The funny thing is, your comments comparing state to city and county employees is the same as what I've seen on many a comment board about how state employees are paid less than the city or county for similar positions!

Fred said...

Textgate. I have some homework to do.