The four-person research department inside the Nebraska Department of Economic Development vanished. Two deputy directors disappeared.
Staffing in the business recruitment division — the division focused on bringing companies and jobs to Nebraska — shrunk from four to two. And the 17-person housing department was cut nearly in half, recent employee rosters show.
It’s all part of staffing reductions that saw employment in the state agency charged with working to grow the state drop from 114 full-time employees to 83 between late June and late February — a 27% reduction, or more than a fourth of the staff, in just those eight months.
The department in a statement defended the cut of 31 positions, noting it had experienced dramatic growth as a result of COVID-19 recovery programs. In 2020, the department had only 63 full-time employees, illustrating that DED is still larger now than it was before the pandemic.
Department leadership has been declining to fill positions when employees leave, reclassifying some jobs, cross-training employees and moving them from phasing-out programs to areas of need, the statement said. The department says it has since filled one of the deputy director positions and is in the process of hiring two new economists for their research section.
Justin Hubly, executive director of the Nebraska Association of Public Employees, said the cuts in rank-and-file workers have come through attrition, but also said such a high rate of attrition should be a concern.
It has come amid a leadership change, as department director K.C. Belitz resigned in late June and Gov. Jim Pillen appointed Maureen Larsen, his general counsel, to the post. Hubly said Larsen also implemented requirements for formerly remote employees to return to the office.
“When you see how quickly that attrition has accelerated, it should raise eyebrows and questions,” he said.
The large-scale staff departures at DED did indeed become an issue in March during Larsen’s confirmation vote before the Legislature. Sen. Stan Clouse, a Republican from Kearney, opposed her appointment, saying he had heard from constituents that she had contributed to a “toxic work environment.”
The legislative committee that considered her nomination by Pillen took the unusual step of forwarding no recommendation, with some members expressing concern about her lack of economic development experience. Before working in the Pillen administration, she had served as a county prosecutor and Nebraska Supreme Court administrator.
But other lawmakers lauded the work she has already done to boost child care, housing and regional economic development as well as to bring needed accountability and fiscal sustainability to the agency.
“She does not shy away from challenges,” said Sen. Rob Dover, a Republican from Norfolk.
Larsen was confirmed on a 32-1 vote.
In the wider view, Hubly questioned such deep cuts to an agency whose work can pay economic dividends for the state.
“Should we be trying to grow our way to prosperity,” he said, “rather than cut our way?”
4 Comments
It’s interesting how economic shifts can impact development efforts. What do you think this means for future growth in Nebraska?
As a former employee who worked before Maureen was appointed, I can attest that the work environment was already toxic. I, for one, am happy to know that she has brought much needed accountability in the agency. Many positions are well overpaid for the amount of actual work being performed. Some positions requiring less skilled workers are compensated at higher rates than RN’s, attorneys, and accountants just to name a few. Fridays were a free for all and the cliques spent their time playing trivia, taking excessively long lunches, or standing around gossiping for hours.
This is extremely interesting as in last year appropriations the swept all the money from the rural work force housing into nuclear energy.
what we have here is false economic developement. You disssuade people from living in Nebraska by high property taxes (housing and business). You divert funds from property taxes actually paid thereby increasing further property tax valuations and taxes. What is done with the TIF funds it goes to certain individuals who do not have to compete as others do and pay no interest on the money they receive. These individuals are enriched, everyone else is poorer but you tell them local control is great. Local control is not fair use of money, it is as corrupt and control from some distant source. You guarantee banking association bonds which are essentially risk free, you hurt existing businesses, and you allow a court and lawyer system that stifles any dissent. You are encouraging people to leave the state. The property tax system nees to move to a sales tax system immediately. Once you have paid for something like property you should not be taxed on it. Inheritance taxes should be eliminated. You encourage poor auditing and no enforcement of spending irregularities. The State offiicals look the other way literally. You want economic developement, change this system and get out of the way. There has been no economic developement for the past 70 years but there has been tax money spent to better lives in Lincoln and Omaha. You need to get rid of non profits and get politics out of the system. Change is necessary and the changes needed are not really political issues. These things I have mentioned need to be done and you encourage continuing the problems that create stagflation.