Reno and Its Unions Reach Budget Reduction Agreements

February 11, 2009 - In front of a packed house, the Reno City Council revealed the results of its ongoing negotiations with the city's nine collective bargaining units over reductions in pay and other expenses needed to balance the city budget through June 30, 2009. All of the unions have tentatively agreed to make the requested 2.1% cuts in expenditures for the remainder of this fiscal year, which ends the spectre of lay offs and the closing of a fire station. How to achieve their 2.1% is being left up to the unions to sort out. Among their choices are foregoing salary increases, unpaid furloughs, and other benefit reductions.

Formal agreements are in place for the City Council, City Attorney, City Manager and his management team (3.5% salary reductions). At 2.1% are employees not represented by a union, RAPG Professional, RAPG Administrative, and the Fire Supervisory Unit RFDAA. Still awaiting final approval through votes of their members are Local 31 Supervisory and Non-Supervisory, IAFF Local 731, Reno Police Supervisors and Administrative Employees, and the Reno Police Protective Association. After the voting, these agreements will come back to the City Council for final approval. The cooperation of fire and police employees is crucial to making all this work since they make up 68% of Reno's payroll.

This probably isn't the end of the story. The City Manager's staff will be continuing discussions with the bargaining units as a prelude to the possibility of further budget problems in the next fiscal year, starting July 1, 2009. If the economic and revenue situation continues to slide, look for more trips to the budget chopping block.

Unfortunately, some of the numbers I've seen lately aren't good. The Northern Nevada Business Weekly reports that the gaming win in Reno during November fell 27.5 percent from the same month a year ago. For the same period, Sparks was down 19.6 percent and North Lake Tahoe was down 30 percent.

Sources: Personal attendance at February 11, 2009 Reno City Council meeting, City of Reno press release.

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