Uncertainty lingers as Nevada state worker furloughs begin today
By Brian Rosenthal
July 1, 2009
Many state agencies are still unsure how furloughs mandated by the Nevada Legislature will affect residents or even how they will be implemented, officials said this week.
While the days of unpaid leave are scheduled to start today, the first day of fiscal year 2009-10, several agencies haven't determined how to put them in place.
"It's a complicated topic, and we're putting this together really right now while we're at the doorstep of the next fiscal year," said Jane Tors, University of Nevada, Reno spokeswoman.
The Democrat-controlled Legislature voted to override Republican Gov. Jim Gibbons' veto of imposing one day of unpaid leave on each state employee each month for the next two fiscal years as part of its plan to deal with the $3 billion state budget shortfall.
The move was expected to save 4.6 percent of salary costs, about $300 million over the two years, state budget director Andrew Clinger said.
"The advantage over getting laid off is obviously you still have a job and we still have, from the state's perspective, the people in place to provide the services," he said. "As far as the advantages over taking just a straight pay reduction, this way the employees get something in return for having to take that pay cut."
Employees favored the furloughs because they felt the cuts would be easier to get back when the economy recovers, said Dennis Mallory, chief of staff of the American Federation of State, County and Municipal Employees in Nevada. He added employees will still be affected greatly.
Lawmakers chose furloughs over other options because the employees preferred it, Assemblywoman Sheila Leslie, D-Reno, said.
"We have fewer state employees per capita than any other state in the country," she said. "It seemed the least we could do when we're asking them to do more work with less pay is to provide a mechanism for a furlough."
Opposition from governor
Republican Gov. Jim Gibbons opposed the furloughs, preferring a 6 percent salary reduction for all employees, spokesman Dan Burns said.
"The governor felt it was much easier for the citizens of the state and just a much more responsible way to handle it as a salary reduction," Burns said.
Gibbons was concerned that some agencies would need exemptions to the law, Burns said.
The Legislature appropriated $4 million for exemptions. Agencies seeking an exemption must get approval from the Board of Examiners: the governor, secretary of state and attorney general. The board has received applications but will not make any decisions until at least July 14, personnel department spokeswoman Lesley Henrie said.
The governor also was concerned the unpaid leave would reduce services, Burns said. All departments acknowledged services will be impacted.
"The fact of the matter is that we cut beyond the bone," Mallory said. "There are going to be repercussions."
Finally, Gibbons warned that furloughs would be difficult to put into place as each state agency has different needs, Burns said.
Interviews with agencies showed a variety of plans and some confusion, but Leslie said they will work it out.
"I think they'll figure it out," she said. "I have great faith in our managers and I'm sure they'll be able to figure it out."
Agencies prepare, worry
Each state agency has its own system for implementing the furloughs and its own concerns.
The Division of Welfare and Supportive Services will halve their office staffs two Fridays each month, according to a statement from the agency.
The Department of Motor Vehicles will implement them evenly, spokesman Tom Jacobs said. They closed express offices in Reno, Sparks and Gardnerville last week as a way to deal with the crunch. The DMV probably won't be hit as hard as other agencies due to reduced car sales, but there will be some impacts, Jacobs said.
"Obviously it's a reduction in workforce," he said. "You can't deny that."
Supervisors at the Nevada Highway Patrol haven't determined when to reduce staff, spokesman Chuck Allen said.
Allen said he didn't know whether the agency is seeking some exemptions for patrol troopers or what the ultimate impact will be.
"Our career field is extremely unpredictable when it comes to calls for services," he said. "We will continue to provide a high level of service and we will answer all of our calls."
Officials of the University of Nevada, Reno and Truckee Meadows Community College aren't sure of the impact on faculty and administrators with contracts prohibiting unpaid leave, Tors and TMCC spokesman Kyle Daple said. The decisions will be made department by department basis, they said.
The Department of Corrections is seeking exemptions for some "critical" correctional positions but has not heard from the Board of Examiners, spokeswoman Suzanne Pardee said.
Parks officials have tried to minimize the impact, said Dave Morrow, state parks administrator.
"Anytime you reduce the hours that you have available to carry out state functions, I'm sure there are going to be some deficiency," he said. "But I think we've done a lot to ensure that it will be minimized and our employees have been supportive."
Senate Bill 433
--One of several actions to reduce $3 billion budget shortfall
--State employees must take one day (8 hours) of unpaid leave each month for the next two fiscal years; projected to save 4.6% of salaries, or about $300 million over two years.
--Effects 17,144 state employees, not including those in the Legislative Counsel Bureau, the Supreme Court or the Nevada System of Higher Education.
--Agencies seeking exemptions must petition the Board of Examiners, composed of the governor, secretary of state and attorney general.
Source: Nevada Budget Director Andrew Clinger and Personnel Director Teresa Thienhaus