Submitted by Jim Richardson, NFA Lobbyist
Very busy day yesterday, with lots happening. The stories here highlight some of the action, but pay no attention whatsoever to one major event for NSHE. Dan Klaich made a strong presentation to the Senate committee of the whole that lasted nearly two hours. He answered numerous questions, assisted at times by Marc Johnson, UNR’s provost, who had been asked to come down specifically to respond to questions about the role Cooperative Extension, which is a state-wide UNR program deriving from its Land Grant status. Johnson also spoke on some other questions, including especially the criteria being applied when considering what programs to cut.
Many questions were asked about the implementation of the furlough program, about tenure and its protections, about faculty workload, about criteria being used to decide which programs to cut in the face of budget cuts, level of tuition and plans to possibly increase tuition, student involvement in planning, plans to deal with possible redundancies and reorganization within the System. Klaich and Johnson did a solid job of dealing with those questions, and some strong support was received on behalf of the work of professors from some Senators, especially Bob Coffin, Steven Horsford, and Randolph Townsend. I was prepared to testify if needed, but felt that these two did a good job of handling all the questions.
Both houses of the Legislature started taking straw votes on items on the governor’s list of proposed cuts, as the stories below indicate. An important straw vote is anticipated this morning in the Assembly on possibly lowering the proposed cut to NSHE institutions. Very important vote!
One major serious [sic] of events that occurred yesterday is worth a comment. The governor has issued a proclamation attempting to force a shut-down of the special session by midnight Sunday night, and he has also attacked legislators including especially Senator Raggio. This has, in my estimation, solidified the Legislature somewhat, and may make it easier for both parties and both houses to reach agreement on what must be done. It is getting more clear that the package they approve will be vetoed by the governor, and then need to be over-ridden by the Legislature. So, this could get even more interesting!
A much larger than usual meeting of the Benefits Coalition took place at noon yesterday. Over 30 representatives showed up for the meeting, with much discussion about the efforts to cut PEBP reserves, to find ways to get money from PERS to help with the budget crisis, attempts to change the collective bargaining law for local governments, implementation of the furlough program, and various initiative petitions that are being promoted. Efforts to cut PEBP reserves are being challenged by some key legislators, so there is some hope that this will not happen, and many are working on that issue. It was generally agreed that getting money from PERS was a non-starter given the constitutional protections that PERS funds have. The governor issued a new proclamation yesterday that was seen as a broad attack on collective bargaining, especially for K-12 teachers, but legislative leaders do not seem interested in taking up that complicated issue. There was much complaining about how the furlough plan has worked (or not) so far in various agencies, and many questions about how it would work in the future under the proposed “four-tens” plan that would have most state offices operating only four days a week. There was general agreement that this plan would make it very difficult for many state agencies, including NSHE, to operate effectively. Several new initiative petitions that have been introduced to limit labor’s political activities were discussed, as was the PLAN initiative concerning mining taxes.
That is a brief report. Must get to Carson City. More later.
Submitted by Jim Richardson, NFA Lobbyist
Yesterday was very busy with public and some private sessions of import. Chancellor Klaich did an admirable job late yesterday of testifying on behalf of NSHE institutions, and their students, staff, and faculty before a committee of the whole in the Assembly (see story below). He also made a brief appearance before the committee of the whole in the Senate, but will return this morning to finish testifying about the impact of the large cuts that are being considered for NSHE. There was also quite effective testimony offered to both committee of the whole by students from NSHE institutions, including a large contingent from southern Nevada who had ridden buses all night to get to the special session.
There were a number of statements made to the press and in private by the Majority Leader of the Senate, Steven Horsford, and the Speaker of the Assembly, Barbara Buckley, that the 10% operating cuts for both K-12 and higher education were too high, and must be reduced. We were heartened by those comments, and by other comments made to me privately by leaders of both parties. We were also pleased to hear Majority Leader Horsford talk about the need to achieve proportional cuts (see RJ stories here), because the latest plan from the Governor continues the pattern of deeper cuts to higher ed than to K-12. (That new plan deleted the proposed 1.75% cut to salaries in K-12, but left then in the list of proposed cuts for NSHE professionals.) K-12 certainly needs adequate funding, but so do NSHE institutions.
It should be noted, as I reported last week, that the total cuts for NSHE are actually significantly above 10% when all the various cuts are added up, so, we are working hard to at least achieve parity in whatever cuts are made. (Those proposed NSHE cuts include an additional salary cut of 1.75% for professional employees, major cuts in funding for Millennium scholarships, cuts in funding usually used for buildings and servicing bonds, and some other cuts.)
There is a dispute over the size of the additional salary cut for professional employees in NSHE. The 1.75% figure being used in the budget proposals from the governor is supposed to be based on the additional required furlough or salary cut for classified employees f the state, but if so the figure should be much closer to 1%. Chancellor’s staff, especially Mark Stevens, are trying to call attention to this apparent mistake, which does amount to a difference of several million dollars system-wide.
Other issues being dealt with include the governor’s proposal to draw down the reserves for PEBP (the health plan for all state employees including NSHE employees) significantly, which would jeopardize the fiscal health of the plan. This proposal is being re-examined because some legislative leaders do not like the plan, but alternative sources to replace the funding that would accrue from the proposal are scarce.
Also, there has been some discussion of the very bad idea floated last week at an IFC hearing to defer retirement contributions for state employees for a year, and this is being addressed as well, working with the Benefits Coalition, particularly Marty Bibb, who is head of Retired Public Employees of Nevada. He has gathered important information indicating that such as idea is illegal on constitutional grounds, and demonstrating that our benefits package is already below that of most other states. We hope this idea will not be taken seriously, but are not taking any chances.
The Benefits collation is meeting today at noon to discuss the PEBP and PERS issues, as well as other matters that affect state and other public employees. Anyone is welcome to attend this meeting if they are in Carson City.
Prognosis: This special session will last several days, I think. And, given the animus that is being displayed, particularly between the governor and the legislative leaders, solving the crisis will not be easy. Some suggest that the Legislature will develop its own solution (which must be one that would survive a veto, which means a two-thirds vote), pass that solution, and then recess for the five days that the Governor has to sign or not sign the bills. If he signs or lets the bills become law without his signature, then the legislatively crafted solution will prevail. If he vetoes, then the legislature would have to reconvene to attempt an over-ride of the veto.
I will be in Carson City again today, and will report afterward. Let’s keep working hard on saving higher ed opportunities for Nevada.
Jim Richardson, NFA lobbyist and UNR professor, educates CSN faculty on impending state budget cuts.
Contributed by Adrian Havas, NFA-CSN secretary.
UNR professor and NFA lobbyist James Richardson met on 5 Feb 2010 with the chapter at West Charleston campus of CSN to discuss pending budget cuts and their effects on faculty and programs.
He began on a positive note. “We have good relationships with people in the governor’s office and the budget office of the state,” he said. “We defeated a $100 million cut in our budget during the last Legislative session.”
It is at the upcoming Special Session called for Feb. 23 by Gov. Gibbons that Richardson said that NFA members could “do some good.” He noted a meeting held just days earlier in which the Interim Finance Committee of the Legislature “was educated” about what effect cuts of the magnitude being discussed will have on the NSHE system.
“Our Health Care plan is, regrettably, on the table,” Richardson said. “Senate Majority Leader Steven Horsford said it’s on the list.”
Richardson urged NFA members to send emails to Senate Finance Committee members to urge them not to reduce this.
Asked about what tone to take in these email communications, Richardson said that should try “not to sound arrogant, or uncivil, or self-serving.” He added that anecdotes of how our classroom experience, and the students’ educational needs, would be helpful.
He said the NSHE system is lucky to have Dan Klaich as its current chancellor. “He’s articulate, intelligent, and people believe him,” Richardson said.
“Klaich is emphasizing that we need to get the autonomy to determine the cut,” he added. “And we will be cut. Anyone who doubts that is not facing facts.”
Richardson then went forward with an outline of where the cuts would likely happen. He later noted that this was not the complete list, but only the most likely targets.
First, he said that student fees for tuition, etc., are likely to rise. “That’s very regrettable, since over the past three years they have gone up 28 percent.”
Second, academic program reorganization is likely, Richardson said. There are basically two ways that the Regents can fire professors: declare “Financial Exigency” which is akin to bankruptcy (the state of Hawaii has recently done this.) The next way is “program reorganization.”
“There is some bumping (seniority) rights, but they aren’t written down,” Richardson said. “This is a more subtle way of making staff reductions, and it offers fewer protections, frankly.”
Richardson said that 40 faculty members have been terminated at UNR under this strategy over the past year, “and then the economy collapsed.”
The third and last major way the budget cuts will be enacted is through pay cuts, he said. “This will happen,” Richardson said. “We will fight to make them temporary.
“You can help by lobbying the Regents. Any code changes should be temporary.”
Senate Chair N. Mark Rauls said that the faculty need to debate any changes to the Regents Code, as well as Financial Exigency. It was pointed out that Regent Chair James Dean Leavitt has reportedly already directed his staff to begin filing papers for Exigency.
The talk turned to the subject of the state’s boom-and-bust cycles, and how the state needs a more stable tax base to support its existing infrastructure, including the colleges and universities.
We have the most screwed up tax structure in the United States, no doubt about it,” Richardson said. “No sales tax on services, no extraction taxes on mining. The governor vetoed Sen. Horsford’s proposal for a broad-based business tax and 40 other ones.”
Other possible taxes Nevada could adopt: a tax on Internet sales generated here, and a tax on services.
Executive Board member Steve Konowalow said that the gaming industry does not pay enough tax, compared with other states with legal gaming. One of the CSN staff present, who said she had moved in the last several years to Nevada from Kentucky, suggested a state lottery, but it was pointed out that the gaming industry has jealously protected its turf in this regard and has rebuffed any legislative proposals to enact a lottery.
Richardson brought the discussion back to the topic of budget cuts.
“The coming Legislative session will be horrendous in terms of revenue coming in,” Richardson said. “We need to do something in this state to improve this.”
One faculty member who identified herself as being in International Languages also a recent transplant to Nevada said that we should “look beyond taxes” for the solution to NSHE’s financial problems.
Richardson replied, “We need to look everywhere.”
College of Southern Nevada economics professor and NFA-CSN chapter president Dr. Shari Lyman explains in a panel discussion aired on KNPR’s “State of Nevada” radio show. If you missed this Monday broadcast (8 Feb. 2010), hear it here (the first half-hour of a two-segment program).
For example: Our beloved gaming corporations pay far higher tax rates in other states, and they happily compete for gaming market share in states with gaming tax assessments as high as 20% (Colorado, Iowa, Louisiana, Missouri), 35% (Indiana), and 50% (Indiana and Pennsylvania). Nevada asks for a measly 6.75. By not increasing our gaming tax rate and collecting more revenue from these corporations to support our public schools, colleges, and universities, we are helping to fund these other states’ public schools, colleges, and universities.
Let’s put Nevada public education first! Please, Mr. Wynn, may we have the 8% you pay in New Jersey and Mississippi?
If you missed Governor Gibbons’ broadcast last night, you can read the text of the 2010 “State of the State” message here (.pdf) or here (website).
NFA Advisor draws your attention to the Gibbons plan for protecting teachers’ salaries: the Education Gift certificate.
“You can use the gift certificate to donate money to a non-profit organization that will make sure your money is spent ONLY on teachers’ salaries. For those of you who can afford to help our teachers, I encourage you do it.”
Dear Governor, with 140,000 Nevadans already out of work and 90,000 more (including teachers and other public servants) projected to join them over the next 18 months, with a 4.6 percent decline in personal income and a massive decrease in home values, just whom do you suppose can still afford to give charity to teachers?
Well, the Nevada mining industry continues to earn record-breaking high profits. Maybe these multi-national companies will donate money to keep our public education afloat.
The bigger issue here is ideology. Do we believe that funding public education is the privilege of the wealthy who can afford to make charitable donations (and receive federal income tax credits/subsidies) for doing so? Or do we accept that, because we give every citizen the right to vote, funding public education is the obligation of every citizen and that fair taxation, including taxation of multi-state corporations who bring business here with the expectation that we will provide them an educated workforce, represents the cost of providing this public service to ourselves and our posterity?
Clearly, our governor believes that Nevada public education, like playwright Tennessee Williams’ Blanche DuBois, should depend on the kindness of strangers. What a helluva way to raise our children and to make our state more attractive to new businesses.
CNBC’s third annual survey of “America’s Top States for Business ‘09″ ranks our state 47th in overall business competitiveness and 49th in education spending and achievement. In commitment to and success in educating youth and adults, only Mississippi does a poorer job than we do. Have we become the “Mississippi of the West” again?
Why is higher education so essential to the creation of a strong pro-business climate in any state? As the authors of CNBC’s survey report explain, “Not only do companies want to draw from an educated pool of workers, they want to offer their employees a great place to raise a family. Higher education institutions offer companies a source to recruit new talent, as well as a partner in research and development.”
How are we going to diversify our economy, bringing new, skilled, and highly paid jobs to Nevada, if we’re about to maim and cripple our higher education institutions with deep and severe state funding budget cuts?
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