TW: The governor of NV is trying to rescind pay raises, many of which are contractually obligated, for state employees in 2009. I believe this is a necessary step. I am hearing from many of my friends and colleagues in the private sector that no raises will be common, in fact I have several getting pay cuts. Given the private sector is moving this direction I would hope those in the public sector despite contracts etc. will feel the same way. Otherwise, resentment against public sector pensions and public unions will rise. While everyone likes increases, we are almost certainly in a deflationary situation and capping pay is a key way to prevent additional layoffs.
From Las Vegas Sun:
"If Gov. Jim Gibbons succeeds in suspending step raises for state employees and teachers, it would be the first time in at least 45 years that the state has not paid the built-in salary increases.
The annual pay raises, which average 4.5 percent, are typically granted during state workers’ first 10 years of employment. Doing away with the step increases and cost-of-living raises would save the state about $160 million over the biennium, said Andrew Clinger, the governor’s budget director. The state has left the step raises untouched since at least 1963. Nevada faces a $1.5 billion budget deficit for the 2010 and 2011 fiscal years."
http://www.lasvegassun.com/news/2008/dec/10/raiding-step-pay-raises-could-turn-costly/
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