Employment by government agencies, schools and higher education doesn't get much credit as a force in the Northern Nevada economy, but nearly one in five workers in the region works for the government.
But while these segments of the region's economy have held up substantially better than most in the past couple of years, they're beginning to slide.
In Carson City, government employment " largely, employment by the state " accounts for a third of the jobs. The state Department of Employment, Training and Rehabilitation estimates about 11,600 people work for the government " 7,900 for the state, 3,100 for local governments and 600 for federal agencies.
The Carson City municipal government hopes to keep its employment at its current level " 594 workers " after it allowed attrition to trim its workforce by 37 jobs during 2008.
The paychecks produced by the state government " critically important in Carson City " also are on thin ice as the financial crisis steadily worsens.
Generally, the state avoided big layoffs in the past year, but legislative leaders are looking at having to cut the budget by as much as a one-third next year.
Despite their efforts to save jobs during early rounds of budget-cutting, state and local
officials say layoffs may be the only remaining choice during 2009.
"Unless things turn around soon, we're running out of cost-cutting options," said Washoe County spokeswoman Kathy Carter.
In Reno and Sparks, the combined number of jobs in government and education is greater than the employment in all the region's hotels, casinos and restaurants. But there are fewer of those jobs this year.
Sales taxes account for 22 percent of Washoe County's revenues. But sales have gone down nearly every single month for more than two years.
Property tax revenues account for another 52 percent of the county's budget. But Washoe County Manager Katy Simon says those revenues also are beginning to decline as the result of foreclosures and weakness in the real estate business.
The upshot: The county has left 240 vacant positions unfilled, and the county commissioners have dangled early-retirement incentives in front of veteran employees.
The Reno City Council this month will examine budget options that could result in the layoffs of about 100 workers " or maybe as many as 500 if the recession cuts deeply into tax revenues.
Sparks, meanwhile, trimmed its staff by 15 percent " close to 100 positions " during 2008, and the city worries that more layoffs may be necessary.
UNR expects to see some cuts in a staff that includes 1,040 academic faculty, 735
administrative faculty and 1,348 classified state employees.
"We anticipate hiring and employment will be down in the coming year as a result of the economic downtown and the reduction in state funding," says UNR Provost Marc Johnson.
At the same time, he notes that hiring can continue for research contracts and other work that isn't funded by the state.