Officials willing to take pay cuts

CARSON CITY -- Most top state elected officials said Wednesday they would voluntarily take 6 percent pay cuts to help with the state budget crisis as suggested by the governor if such pay cuts were imposed on state employees.

But several emphasized they do not expect the Democratic-controlled Legislature to approve the pay cuts and other budget proposals advanced by Republican Gov. Jim Gibbons in his State of the State address.

The legislative session begins Feb. 2, but a decision on the cuts might not come until near adjournment on June 1.

"Absolutely I will take the cut," state Treasurer Kate Marshall said. "My staff and I work together. I would never want them to take a cut that did not also apply to me."

Nevada Supreme Court Chief Justice Jim Hardesty said he wouldn't take a 6 percent pay cut and wouldn't have to under state law that prohibits salary cuts or increases during a justice's or judge's term of office.

But Hardesty said he and Justice Ron Parraguirre have decided not to serve on the Supreme Court Law Library Commission, which pays $30,000 annually.

That commission and other similar commissions for District Court judges were created by the Legislature in 2001 with the purpose of equalizing pay for judges and justices.

Because of their decision, Hardesty and Parraguirre will earn $140,000 a year, 18 percent less than the $170,000 the other five justices are paid.

"These were personal decisions we made," Hardesty said. "The others have every right to be appointed to the commission and accept the pay."

On the other hand, Clark County Chief District Judge Art Ritchie said none of his judges agreed to give up any pay.

"I am not aware of any judge who has agreed to or is considering a pay cut," he said.

Most district judges are paid $160,000 a year. However, six district judges whose terms do not expire until 2010 receive $130,000 a year, but also receive pay equal to the others by taking $30,000 for serving on the District Court Commission on Law Libraries.

There are 64 District Court judges in the state, and their salaries are a state government responsibility.

Judges and justices received pay increases, their first in six years, starting this month.

State constitutional officers received 20 percent pay increases in 2007, also their first wage boosts in six years.

The attorney general is paid $133,000 a year, while the secretary of state, controller and treasurer are paid $97,000. The lieutenant governor, a post that is considered a part-time job, gets $60,000.

In his State of the State speech Jan. 15, Gibbons urged all state constitutional officers to voluntarily cut their salaries by 6 percent.

He is recommending in his $6.17 billion, two-year budget that all state employees, teachers and university and community college employees take 6 percent pay cuts, with reductions in health care benefits.

The governor said he and his staff will take the cuts. Gibbons is paid $141,000 a year.

If legislators do not approve the pay cuts and other benefit decreases, state Budget Director Andrew Clinger said, between 9,000 and 11,000 state employees will be laid off.

A lot of private employees wish they could have been given a choice to take a pay cut rather than a layoff, said Daniel Burns, Gibbons' communications director.

"There are thousands of people in private industry who do not have jobs now," Burns said. "All last weekend I turned on my TV set to watch people complain about the budget cuts. They were followed by stories about businesses closing their doors. A 6 percent of something is better than no percent of nothing."

Clinger contends the state needs $8 billion over the next two years to keep pay and benefits intact and services at levels contemplated when the Legislature adjourned in June 2007.

Even with Gibbons' support of a 3 percentage point increase in the room tax rate, with his plan to take $79 million in county property taxes and $31 million in additional gaming taxes, the state is $1.8 billion short.

Besides Marshall, Secretary of State Ross Miller, Lt. Gov. Brian Krolicki and Attorney General Catherine Cortez Masto said they would take the 6 percent pay cuts, if that is what the Legislature approves.

Repeated attempts to contact state Controller Kim Wallin were unsuccessful.

Some questioned the wisdom of a pay cut.

"A 6 percent cut of state employees is a short-term solution to a long-term budget problem," said Masto, a Democrat. "It is shortsighted and fails to contribute to a sustainable fiscal policy for our state."

Marshall, also a Democrat, said she is most concerned about how the potential cut would affect lower-paid workers.

Some of her staff members earn $24,000 a year. The cut to some of them actually would be in the 12 percent to 13 percent range, she said.

Besides the pay decrease, the employees also would not receive 4.5 percent annual step increases under Gibbons' plan and would pay $110 a month more for health care.

"At the same time they are being asked to work harder," Marshall said. "I will stand with my employees."

Hardesty said the state constitution states specifically that the compensation of justices and judges "shall not be increased or diminished" during the term of office for which they were elected. It also states that a "sufficient amount of money" must be made available to pay them.

As an independent branch of government, the judiciary is not required to accept or agree to what the executive branch wants.

Hardesty said Gibbons asked him and other judges to take the 6 percent voluntary cut. He turned down governor's request.

But Hardesty said he submitted a Supreme Court budget that is 14.7 percent less than one approved two years ago.

In addition, Hardesty said, the judiciary has reduced its budgets over the past two years that were five times the reductions sought by Gibbons.

In the 2007-08 fiscal year, the court returned almost $2 million to the state general fund, and it anticipates returning $2.7 million this year.

Supreme Court justices serve staggered terms. They and district judges are not entitled to receive pay increases under the constitution until after they have been elected or re-elected.

Justices Mark Gibbons and Kris Pickering were elected in November, and they received a $30,000 pay increase, bringing their pay to $170,000.

While Hardesty and Parraguirre will continue to receive $140,000 a year pay because they gave up appointment to the Law Library Commission, Justices Nancy Saitta, Michael Douglas and Michael Cherry took the appointments.

As a result, they also will receive $170,000 this year.

Although the law allowing judges to receive extra pay for serving on the Law Library Commission has been ridiculed as a subterfuge to get around the constitution, Ritchie defends the practice. He said judges work hard for the money.

"Its purpose is to equalize pay," Ritchie said, "but it is extra work for the judges. It means they receive equal pay for extra work."

Ultimately, Ritchie said, it is up to the public to decide whether judges earn their pay for serving on library commissions.

Under laws passed by the Legislature, the judges are permitted to draw the money.

Starting with the 2014 election, all district judges will be elected at the same time, and there no longer will be a need to take extra pay for serving on a library commission. District judges then will receive pay raises at the same time.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.