Report Reveals Costs, Impacts of Proposed Collective Bargaining for State Employees

Las Vegas – Today, the Las Vegas Metro Chamber of Commerce released a report outlining the potential costs of proposed legislation that would open the option for Nevada state employees to engage in collective bargaining.

In the report and analysis prepared by RCG Economics LLC, it is estimated that the incremental costs of implementing collective bargaining for state workers to the State of Nevada would cause “an increase of approximately $1.7 billion to $1.75 billion per year by 2034, or by an annual 6.9 to 7.1 percent, above the current policy of no collective bargaining for state workers”.

The Chamber commissioned RCG to analyze the issue to better understand Senate Bill 135, sponsored by the Senate Committee on Government Affairs, that was introduced this session.  If passed, it would allow state employees to collectively bargain for wages and benefits.

The study examined various case studies based on other states that have collective bargaining for state employees.  It then looked at the fiscal costs in those states.

Findings include:

  • Collective bargaining powers for each employee class tend to increase total government expenditures
  • Recent research found that states saw 2.2 to 2.8 times greater increase in total statewide spending when state workers were granted mandatory collective bargaining rights compared to the four other government employee classes (police, firefighter, teachers, and other municipal workers)
  • Nevada will see an economically significant increase in government expenditures over time as a result of extending collective bargaining rights to state workers
  • It is expected that total annual Nevada state government expenditures would rise by approximately $624 to $764 per capita, representing an increase of approximately $1.7 billion to $1.75 billion per year by 2034, or by an annual 6.9 to 7.1 percent, above the current policy of no collective bargaining for state workers

“This report shows that allowing collective bargaining for state employees would add significant new ongoing annual costs to the state budget and would likely take resources away from other important priorities including education, human services, public safety, infrastructure, and health care,” says Hugh Anderson, chairman of the Chamber’s Government Affairs Committee.

About the Las Vegas Metro Chamber of Commerce:

The Las Vegas Metro Chamber is the largest business organization in Nevada.  Founded in 1911, the Metro Chamber is focused on advocacy and public policy at all levels of government, developing partnerships to improve the community, and providing resources to help businesses grow, thrive and create jobs.  More information about the Metro Chamber can be found at LVChamber.com.

About RCG Economics:

RCG Economics is a long-established source of strategic market research, regional economic advice, macroeconomic forecasts, and current data. RCG Economics has established a reputation for being objective and independent and – in the words of one client – “telling it like it is.”  Its clients include a diverse array of organizations and individuals needing reliable data, research, forecasts, and advice. It serves the real estate and gaming/hospitality industries as well as corporate decision makers, economic development entities, and local, state and federal governments and agencies.  More information can be found at RCG1.com.

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Read the Full Report Here!