Government payrolls under pressure from downturn

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 Reno-

Sparks area works for the government.

In fact, seven of the 20 biggest employers in

Washoe County are government agencies, starting

with the Washoe School District's 7,000

workers in the top spot and the University of

Nevada,Reno, and its 3,100 full- and part-time

workers in the second spot.

In Carson City, government employment

largely,employment by the state accounts

for a third of the jobs.

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.

The City of Sparks has reduced its staff

largely as the result of the abrupt slowdown in

residential development and freezes on filling

vacant positions are common throughout

government agencies.

That tightening is likely to ripple through

the economy.

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 and it's better-paying

employment, to boot.

In Carson City, 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.

Much as the

belt-tightening by

local governments

will affect the

region's economy,

school boards and

city councils find

themselves in financial

straits that are

caused by the downturn.

Take, for example,

Washoe County:

Sales taxes

account for 22 percent of the 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 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.

Still, Simon says,"Layoffs are an absolute

last resort."

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.

Already, part-time employment has been

cut, and the city is freezing vacant positions.

The Washoe County School District,meanwhile,

has promised its 7,000 employees that it

won't undertake layoffs before the end of this

school year, although it has a handful of vacant

positions that will remain unfilled.

UNR expects to see some cuts in a staff that

includes 1,040 academic faculty, 735 administrative

faculty and 1,348 classified state

employees as 2008 came to a close.

"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.

The City of Sparks, meanwhile, trimmed its

staff by 15 percent close to 100 positions

during 2008, and the city worries that more layoffs

may be necessary.

The culprits: The slowdown in construction

reduced the need for staff in the city's community

development staff.

As other tax revenues slowed, the city

offered early retirement incentives and didn't

fill positions that were left open by normal

attrition.

Truckee Meadows Community College has

reduced its fulltime staff of 494 by about 80

positions since the state began tightening its

belt in mid-2008. The college has offered buyouts,

left vacant positions open and sent some

letters of non-appointment to existing staff

members.

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 New Year dawns

with a steadily worsening financial crisis.

Generally, the state avoided big layoffs in the

past year, but legislative leaders have warned

that current revenue levels might require as

much as a one-third cut in the budget next year

a cut that would require deep cuts in jobs.

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," says Washoe

County spokeswoman Kathy Carter.