Employee groups encouraged but governor upset with salary add-backs

While state employee groups were encouraged by legislators' decision to reduce their salary cut and protect their benefits, Gov. Jim Gibbons made it clear Tuesday he sees Monday's vote as irresponsible.

"They added $300 million to the budget deficit," he said. "They cannot get the idea that they're in a hole and they need to stop digging."

Monday evening, in a 20-minute meeting that followed several days of closed-door negotiations, lawmakers in both parties and both houses voted to restore the Public Employee Benefits Program reductions included in the governor's recommended budget.

They refused to reduce or eliminate subsidies for retirees and refused to shift more of the cost of benefits to the employee premiums. Those decisions will require an additional $158 million over the biennium.

Lawmakers also voted to convert the proposed 6-percent salary cut to 12 days of unpaid furloughs for all state workers each year " one day each month. That comes out to a 4.6 percent overall pay reduction.

"They were adding back at a rate of $15 million a minute," said Gibbons of that meeting. "It's going to be very, very difficult if they continue down that road to balance a budget."

He also had a response for lawmakers who have sharply criticized him and his budget.

"Often times, I find it eye-opening to see some of the complaining and whining that's going on," he said. "There are no easy choices, of course."

Gibbons said his administration will present the Legislature with its recommendations either today or Thursday.

"We have a plan. We will present a balanced budget without raising taxes. We've looked at a lot of choices. We've looked at a lot of options."

He declined to detail his plan until then.

While Gibbons was less than pleased with the decisions of the Senate Finance and Assembly Ways and Means committees, some employee groups were encouraged by the Monday meeting.

"It's bittersweet for us," said Dennis Mallory of the American Federation of State, County and Municipal Employees (AFSCME). "We didn't want to take the pay cut, but if we had to take it, I'm glad they decided to do it in the form of furloughs. That's much more palatable."

He said now that employees have "taken their hit, it's time for them to do something for us."

Mallory said that something is in the bill allowing state workers collective bargaining for non-economic issues such as workplace conditions.

"That should be the reward," he said.

Jim Richardson of the Nevada Faculty Alliance said his members were relieved the cuts to benefits were restored but wasn't certain the salary cut would work at the university system because those professional employees are contract employees.

Executive Vice Chancellor Dan Klaich said it won't work. He said the only way university professionals can be furloughed is by declaring a financial exigency.

"We've got different types of employees and they all have different rights," he said. "A 4-percent cut on professionals is just a 4-percent operating cut."