Bull’s-eye on salaries
November 3, 2010 - 11:00 pm
Among the biggest losers in Tuesday's elections: Nevada's public employee unions.
Legislative Democrats lost their two-thirds supermajority in the Assembly and failed to achieve that margin in the Senate. Brian Sandoval's victory ensured the governor's mansion will stay Republican. All of a sudden, a big bull's-eye is on the public sector's lofty salaries and benefits.
But don't feel bad for your government employees. A couple of pre-election news items revealed just how hard it is to dial back their budget-busting paychecks.
Last week, the city of North Las Vegas reached an agreement with its largest employee union on contract concessions intended to save 150 jobs. City workers will have their salaries frozen for two years, and must take 18 furlough days through next fiscal year.
In exchange, city negotiators gave union workers 11 bonus vacation days over the next 20 months, which can be used as a means of deferred compensation, to be cashed out at a future date to make up for the unpaid furloughs.
Down the street at Las Vegas City Hall, a report commissioned by the city found that some of its unionized workers have salaries between 50 and 75 percent higher than similar positions in other regional governments.
Unlike North Las Vegas and other local governments, Las Vegas is taking steps to rein in these threats to its long-term solvency. Future city hires will have reduced pay scales, and current workers at above-market salaries won't get pay raises of any sort until the market catches up.
Because local governments still provide such generous compensation and benefits, their revenues are an inviting target for lawmakers who want to balance the state's next two-year budget without raising taxes further.
Government unions spent big and pulled out all their tricks to protect their interests during this year's campaign. How far they're willing to go to protect their fat paychecks might very well define the 2011 legislative session.