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.
