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June 2008

 

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Volume 5, Issue 3

 


Inside . . .

Regional Economic outlook Link
Workforce Board Area 9 Link
Career Center Happenings Link
Tips from Career Coaches Link
Talent Development Link
Young Workers on the Rise Link
Connie's Mailbag Link
NCACworkforce.org Link
Contact Link

 

Executive Director

Paul Haynes

 

Editors

Dorcas Sheffield

 

Contributing Editors

Jacky Akbari

Brian Clark

Tanya Evrenson

Ellen Zinkiewicz

 

NCAC

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Nashville, TN 37228

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Regional Economic Outlook

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Demand for home health services could soar

 
   

Nashville Business Journal - by M.B. Owens Nashville Business Journal

http://www.bizjournals.com/nashville/stories/2008/03/24/focus1.html

 
 

An aging baby boomer generation intent on putting off assisted living and nursing home care as long as possible coupled with a new state initiative could lead to record demand for home-health-related services.

The Tennessee Department of Mental Health and Developmental Disabilities says there are 160 home health service providers in the state and that the number is expected to increase significantly.
The U.S. Department of Labor has projected employment for personal and home care aides will grow by 51 percent or 389,000 jobs in the next 10 years. This position is considered one of the fastest-growing of all employment sectors.

Gov. Phil Bredesen's proposed Long-Care Community Choices Act of 2008 could be a boon to home care. The act would redirect the state's Medicaid spending toward home- and community based care.

Doctor PictureJosh Smithson, owner and executive director of Nashville-based Seniors and More started providing "companion care" services in 2003

After starting out with a handful of certified nursing technicians, five years ago Smithson has grown his business to 80 full- and part-time employees and annual revenue of about $1.8 million.
Most home care companions, because of regulations, cannot provide direct medical care or dispense medicines.

"Families are often in a crisis situation and do not know what to do with an older parent or relative who needs personal care," says Smithson. "They are looking for direction and help in dealing with a difficult situation."

Families Smithson works with - sometimes at the request of parents needing care - often do not want to send aging family members to a nursing home or assisted living community and are looking for an alternative, he says.

Smithson meets with each family, goes over the needs of the client and develops a care plan. Needs can vary greatly and can include dressing, bathing, cooking and light housekeeping.

 

 
 

Metro HR tries to trim down layoffs

http://www.nashvillecitypaper.com/news.php?viewStory=59446 
By Nate Rau, nrau@nashvillecitypaper.com

Metro Human Resources is working to offset the estimated 200 layoffs called for in Mayor Karl Dean’s budget proposal by switching employees to other departments and leaving current vacancies unfilled.

HR began meeting with other Metro departments last week to discuss the process for implementing the layoffs and how to mitigate the job cuts as much as possible.

HR asked Metro departments to turn in their layoff plans by May 1. Seniority is the first factor considered when cutting staff, according to civil service rules.

“The goal is to place all 200 employees that will be affected,” Metro HR Director Dorothy Shell-Berry said.

HR isn’t waiting for May 1, or for Dean’s budget proposal to be ratified by Metro Council in June, before it looks to spare as many employees as possible. Already, HR has started shifting would-be laid-off employees to other departments. HR is also speaking to local staffing agencies about placing Metro employees with other companies.

Metro Director of Finance Richard Riebeling said there isn’t officially a Metro-wide hiring freeze as a result of the budget cuts. However, between reassigning employees to other departments to avoid layoffs and eliminating about 130 currently vacant positions, there is a de facto hiring freeze across Metro.

“There are no new hires so we can figure out where we can put these people who might be affected,” Riebeling said.

With Metro Schools receiving a $27 million bump in funding and with the police department receiving a negligible 1 percent cut, the third-largest department, Public Works will be the hardest hit by the layoffs.

Public Works’ staff of about 450 employees is looking at about 50 layoffs, according the department’s Public Information Officer Gwen Hopkins-Glascock.

“I feel like… through restructuring they’re going to continue to deliver the services they deliver,” Riebeling said, adding the issue in many departments was efficiency and streamlining certain functions.

“You’re pleased about the budget in some ways, but you don’t feel good about it in other ways,” he said. “I had to talk to people [in the finance department] about their jobs and it’s not a pleasant thing.

“At the same time you have to be realistic. A government job historically was viewed as a safe job and you can’t do that anymore. The public won’t accept it and you have to trim the areas that aren’t the highest priority in order to continue to function.”

Metro Councilman Walter Hunt is the chair of the Personnel and HR committee. Hunt said after speaking with departments across Metro he was hopeful the number of layoffs could be limited as much as possible.

“It’s not unusual and it’s not unique,” Hunt said. “It’s a business and like many other businesses right now you have to make those decisions.

“Right now I feel good about the work we are putting into trying to look at all the departments across the government and see where we can place them.”

 

 
 

'Perfect storm' slams budget

http://www.tennessean.com/apps/pbcs.dll/article?AID=2008804300447
GENERAL ASSEMBLY, BREDESEN READY TO MAKE CUTS
BY THEO EMERY • STAFF WRITER • APRIL 30, 2008

BREDESEN Tennessee's April sales tax revenues took their steepest drop in more than four decades, a top financial adviser told state officials Monday, as the administration and General Assembly prepared to sharply cut their budget plans for the rest of this year and next.

With a 5.5 percent drop in sales taxes, sharp declines in housing starts, a plummeting housing market and an increase in unemployment rates, "you put all this together, and it is a perfect storm," University of Tennessee economist Bill Fox told the state Funding Board.

State Revenue Commissioner Reagan Farr estimated that the current year's budget could have to be reduced by as much as $380 million. Next year's budget will have to be revised downward, as well; Gov. Phil Bredesen has said that as much as $500 million in spending could be pared from the 2009 budget.

State Finance Commissioner Dave Goetz said that the revenue situation was worse than expected.

"It will require a deeper level of reductions that what we'd anticipated," he said. "We're going to have a recommendation for the legislature on how to go about doing that."

Fox said April's sales tax decline was the largest monthly drop since 1961. The state's unemployment rate has risen from 4.5 percent a year ago to 5.6 percent today.

"The economy has clearly turned much worse than anyone anticipated a year ago, or even four or five months ago," Fox said. "It's playing out in tax revenues in very negative and perverse ways."

CapitalEconomic advisers came bearing a bushel of bad tidings for the board, which will reconvene again Thursday to approve revenue estimates. Those estimates will form the basis for revisions to the end of this year's budget, as well as next year's.

Fox had the most pessimistic revenue estimates among three sets of revenue reports that together will form the basis for the board's recommendations to the General Assembly, which must close the books on the current year's budget as well as approve next year's spending.

The board heard from the General Assembly's Fiscal Review Committee and the state Revenue Department, in addition to Fox.

Fox estimated that sales and use taxes would see a 0.2 percent growth for the year, while Fiscal Review estimated 1.8 percent and the Revenue Department 1.3 percent.

Rep. Craig Fitzhugh, chairman of the House Finance Committee, said the reports confirmed his expectations.

"The general economic downturn across the country has affected us drastically on our state sales tax," he said. "It's a real critical situation as far as revenues go."