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.
