According to a study by the Partnership for Public Service, the government will be adding 270,000 mission critical jobs by 2012.  Twenty percent of those will be medical jobs.  The unique recruiting proposition the government is offering a student loan repayment program similar to what the military uses.  A new hire can receive up to $10,000 per year in addition to sign-on bonuses and relocation incentives.  If a candidate plays it right, they can receive additional $60,000 in non-traditional income over 3 years.

The State of Nevada Unemployment Insurance Trust Fund is dipping to record lows and will be in a negative position between the middle and end of October for the first time since the 1970s, said Cynthia Jones, Deputy Director of the Nevada Department of Employment, Training and Rehabilitation (DETR) and administrator for the DETR’s Employment Security Division.

“We have already put the process in motion to borrow funds from the federal government, ensuring that we can continue, without interruption, to pay unemployment benefits,” Jones said.

Nevada has submitted a letter to U.S. Department of Labor Secretary Hilda Solis, requesting up to $264 million in federal loans to meet state unemployment insurance obligations through December 31, 2009, Jones said. Thereafter loan requests may be submitted every 90 days.

“The state is currently sending out $35 million per week in unemployment benefit payments — which includes federal extensions — to approximately 110,000 benefit recipients,” Jones said.  “Without drastic improvements in current economic conditions in Nevada, DETR estimates approximately $1 billion in federal loans will be necessary by the end of calendar year 2010.”

Under the American Recovery and Reinvestment Act (ARRA) provisions, interest on federal loans has been waived through the end of calendar year 2010. If another extension is not granted, Nevada would have to begin interest payments on the federal loans on September 30, 2011.

The Employment Security Council will convene on October 6th, 2009 to hear information regarding the status of the Unemployment Insurance Trust Fund, benefit payments, tax collections and trust fund balance projections for this year, 2010 and future years.

The council, which consists of nine members appointed by the governor, will discuss the unemployment insurance tax rate scheduled for the upcoming calendar year and strategies for repaying funds loaned by the federal government.

The Council will be presented with a number of average tax rate scenarios (with associated tax schedules) and the resultant impacts on interest costs, loan repayment and strategies towards moving again towards reestablishing Trust Fund solvency and rebuilding sufficient reserves, Jones said.

“Economic recovery that results in lower benefit payments and increased contributions will be key factors,” Jones said. “We realize that this is a topic of concern for everyone involved. We are facing an unprecedented economic situation here in Nevada and we must act prudently to ensure the needs of the unemployed are met as expected and mandated.”

This meeting also serves as the public regulation workshop for the establishment of the tax schedule for 2010 and will be publicly noticed.

The rate strategy adopted for 2010 and subsequent years will impact the amount ultimately borrowed and interest expenses incurred, Jones said.  The tax schedule is the vehicle by which experience rated employers (approx 55 percent of all employers) are assigned a tax rate for the upcoming calendar year. The statutory tax rates for experience rated employers range between .25 percent and 5.4 percent of the taxable wage base (first $27,000 earned by employee for 2010).

Employers are assigned to one of 18 tax rates based on their experience record with the Unemployment Insurance program. New employers are not impacted as they are statutorily assigned a rate of 2.95 percent until such time they qualify for an experience rated account (approximately 3 years), Jones said.

The council will hear any public and interested party input, deliberate the issue and recommend an average tax rate to the Jones, the Employment Security Division Administrator, for consideration. The regulation hearing for the adoption of the tax rate schedule regulation for calendar year 2010 is scheduled for Dec. 7, 2009. The new rate will take affect January 2010.

AmeriCorps has been a longstanding community service program since 1993.  It was designed very much like the CCC (Civilian Conservation Corps) from the Great Depression era.  The program provides 75,000 jobs for adults to serve their communities through nonprofit groups.  AmeriCorps is non-partisan, launched during the Clinton Administration, but grown during the Bush Administration.

Well, somehow in this past legislative session, we forgot to fund Nevada’s portion of AmeriCorps.  And like other federal programs, this is required for the matching of federal funds.  Now here is the kicker…..Nevada’s contribution:  $365K.  Federal matching:  $7.5 million.  My calculator reads 20.5:1 matching.   That is a lot of jobs in Nevada that will go away because the Legislature overlooked this and forgot to fund Nevada’s part.

What a shame.  Nevada never needed more programs like AmeriCorps like it does right now.

Kudos go out to the State of Nevada (and Eric Anderson) for leveraging LinkedIn.  I received a message from one of their analysts (recruiters) that they have created a group to “to answer questions regarding open positions with the State as well as to assist in recruiting for all State openings.”  This is very forward thinking and a great effort in my opinion. 

We always talk about ‘breaking down the barriers of the application process,’ and adding the human element of recruiting back into the mix.  This is a great way to do it.  We all know that navigating the government application process can be challenging.  But when you offer guidance, jobseekers are more apt to take that next step. 

It will be interesting to see the results this effort produces.  Here is the invite I received:

With the financial crisis Nevada is experiencing, we are hearing a lot of belly-aching, but very few proposed solutions. We are experiencing real problems.  So, we need real solutions….quick.  Governor Gibbons’ proposed budget has offended nearly every Nevadan and right now every industry is trying to protect its’ own.  But if we do not protect the core necessities — Health Care and Education — we are doomed.

Now I do not consider myself to be a brilliant guy, but I do have a little common sense.  There is no denying that our government is mismanaged in many, many areas.  I often look at a small department, that I know little or nothing about, and can immediately recognize efficiencies that can be put in place to save millions and millions of dollars. 

Yes – most of those efficiencies replace human capital with technology.  And right now, the last thing we need are more layoffs.  But the fact of the matter is …. there are thousands of public jobs in Nevada that remain vacant….more specifically in critical need areas such as health care and education… the same areas our Governor is proposing that we cut. 

So, why can’t we simply retrain?

Governor Gibbons – here is a solution:

1. Create a series of consulting teams of Nevada’s top industry leaders from the private sector to conduct a thorough audit of all governmental departments in search of areas where efficiencies can be created.  (A ‘true’ public-private partnership).  Finance/Accounting professionals evaluate those areas.  Technology professionals evaluate IT infrastructure.  Engineering professionals those associated areas, etc.  I’m not talking about more bureaucrats, I’m talking about the best and the brightest from the private sector.  Nevada has a lot of smart people living here and many are willing to help at little or no charge.   You want transparency – this is how you get it.
2. Present all of the findings with the consultants recommendations to the Legislature, including proposed RIFs (Reduction in Force) and technological implementations to increase efficiencies.  These would be real solutions with real plans that could be implemented immediately. 
3. Those public employees effected by proposed RIFs are tested for current skills and capabilities and presented a few options:
   a.  Early buy-out, retirement offering. Many of these folks are ready to retire anyway.  If they wish to sharpen their skills to be applied in a critical need area, offer them a partially paid retraining opportunity as well.
   b.  For those not ready for retirement – a full retraining opportunity restricted to the top 10 critical need areas.  This would give them the skills to earn an equivalent salary, keep their benefits and have the opportunity to become a nurse, teacher, police officer, engineer, IT professional, etc.
   c.  If the RIF involves a skilled professional in one state agency, give them the opportunity to transfer to an open job requisition in another agency.  Skilled professionals are always in demand.
   d.  If they do not choose any of the above, they can join the unemployed ranks.  We will have exhausted every opportunity to provide them the necessary skills to be productive in today’s society.  They will eventually have to obtain new skills.
4. All of these re-training opportunities are offered as part of the severance (which it really is not) package, including the cost of schooling, cost of living adjustment, etc.  Bridge the gap during the transition. Make it easy for the displaced workers.  And provide them with a new skill set that can apply in the private sector as well. 

This solution would:

• Create true transparency in government 
• Right-size government and optimize efficiencies
• Leverage available technologies
• Retrain current government employees for jobs in critical need areas
• Solve critical workforce shortages
• Keep Nevada educators educating
• Produce additional income streams into higher education
• Demonstrate Nevada’s commitment to education, health care and public service
• Improve the long-term health and well being of Nevada
• Correct the projected budget shortfalls
• Get us out of this mess!!

There are probably some holes in the above plan, but at least it is a starting point.  And more important, it is a proposed solution….not just a complaint.  Until we begin to discuss solutions, we will never get closer to resolving the problem.

Thanks for listening/reading my babble.

Many believe that the public sector is immune to economic slowdowns and layoffs……

Wrong!!!

Even the City of Las Vegas had a ‘Pink Slip Party’ this week.