State's hiring awaits an economic thaw

In 2002, Nevada Gov. Kenny Guinn, as

part of cost-cutting measures designed to

reduce the state's looming budget deficit,

instituted a hiring freeze on government

workers. As the year ends, the limit is still

in place.When will it be lifted?

"If you can tell me when the economy

will improve," said Maud Naroll, chief

planner, at the state's Budget and Planning

Division in Carson City.

That's when the freeze might thaw.

Like everyone else, the government is

waiting for the economy to heat up before

it takes any more risks.

At year-end, the state employed 14,444

people, not including the courts, University

of Nevada, Reno and the Legislative

Counsel Bureau, said Naroll.

Law enforcement personnel are exempt

from the freeze, said Naroll, and the state

at year-end was approving the hiring of

essential direct client service workers.

The news wasn't all bad as 2002 came

to a close. The State of Nevada Economic

Forum raised slightly its forecasts for most

of the state's tax revenues. For example, the

group said sales tax revenue would rise 5.2

percent in 2003, up a

little from an earlier forecast of 5.0 percent.

They said revenues from the percentage

fees tax - the gaming tax - would

increase next year by 3.2 percent, slightly

more than an earlier estimate of 3.0 percent.

The legislature this year will be looking

at overhauling the state tax system to come

up with enough money to cover the state's

$350 million deficit. The only immediate

impact would be from an increase in existing

taxes on cigarettes and liquor, which is

expected. New taxes, including a broadbased

business tax designed to raise the

majority of needed funds, would be years

in the making.

But once the deficit is addressed, and

the economy sparks, Nevada will look at

hiring again.