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Gov. Sisolak says he expects '450 to less than 50' layoffs in message to state employees on budget shortfall

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Posted at 11:57 AM, Jun 11, 2020
and last updated 2020-06-12 02:17:15-04

LAS VEGAS (KTNV) — Gov. Steve Sisolak notified state employees on Thursday of proposed plans to address the projected Fiscal Year 2021 budget shortfall, including expected layoff somewhere in the range of "450 to less than 50" expected.

Preliminary estimates indicate approximately a $900 million General Fund shortfall, when combined with the Distributive School Account, the revenue shortfall increases up to $1.3 billion in Fiscal Year 2021. The estimated revenue shortfall represents a significant percentage of the state’s overall $4.5 billion operating appropriations for the fiscal year.

Gov. Steve Sisolak said in a press release:

Prior to the pandemic, the State was focusing on plans to implement a child, family and community-centered Nevada government. And while our budget looks a lot different now than it did then, I still maintain hope that we can use this opportunity to reinvent our State under that vision and fix the historic and systemic problems that served as obstacles to real progress in the past.

The projected shortfall may shift as we continue to receive and analyze new economic data, but I have the responsibility for developing the proposals to address the Fiscal Year 2021 shortfall based on what we know today.

The governor's office says, in preparing plans to address the Fiscal Year 2021 shortfall, state officials have worked diligently with agencies to reduce the number of anticipated layoffs from more than 450 to less than 50 expected at this time.

The proposed plans include one furlough day a month for all state employees beginning in July, and a freeze on merit salary increases for Fiscal Year 2021. No additional changes to health insurance or retirement benefits for State employees are proposed at this time for Fiscal Year 2021 beyond those approved by the Public Employees’ Benefits Board earlier.

UPDATE: Nevada Gov. Sisolak details plan to address budget shortfall

Based on the preliminary estimates for the Fiscal Year 2021 shortfall, without significant federal funding to assist with the state’s revenue shortfall, Nevada will not be able to avoid severe reductions in general fund support for agencies and services that represent the majority of general fund expenditures, including health and human services, K-12 and higher education and public safety.

In addition to working with Nevada’s congressional delegation to advocate for federal funding for state and local governments, the Governor and the Governor’s Finance Office continue to work closely with legislative leadership and staff to review and finalize budgetary proposals to address the Fiscal Year 2021 shortfall and coordinate timing for an upcoming special session to finalize the proposals before July 1.

State employees were notified via a letter and video message from the governor.

The video may be watched here, and the letter is attached to this press release for reference.

Clark County also released the below information when it came to the proposed changes and hour reductions:

The ordinance proposes the hours of operation for most Clark County offices to be Monday through Thursday, 7:30 a.m. to 5:30 p.m.

Some county functions will continue to operate five days a week and over weekends as they do now, such as the Department of Family Services, Juvenile Justice Services, Animal Control, code enforcement, the Recorder’s Office, and building inspections.

The county has reported facing a $284 million structural imbalance for the fiscal year 2021 and says it continues negotiating cost reductions with union groups.