State, city layoffs: 45,000 and counting

[marmar]

from CNN Money:



State, city layoffs: 45,000 and counting
A squeeze on tax revenues could force local leaders to cut tens of thousands of more jobs. That could add to the nation's economic woes.



NEW YORK (CNNMoney.com) -- The latest hit to the economy could come from state houses and city halls across the nation, which are in their worst budget crisis in years.

With falling revenue from sales and income taxes, and property-tax declines looming, states, cities and towns have already laid off tens of thousands of government employees. Many expect more job cuts ahead as public officials struggle to balance their budgets.

The American Federation of State, County and Municipal Employees, a public employees union, says about 45,000 government layoffs have been announced this year.

All but four states are set to begin their new fiscal years on July 1, which means that tough decisions will have to be made soon. Economists say that cutbacks in jobs and spending by local governments could be a major drag on the overall economy.

"This isn't a wrecking ball to a healthy economy, but it could be the straw that broke the camel's back," said Bob Brusca, economist with FAO Economics in New York.

There are 29 states, including California, Florida and Ohio, facing a combined budget shortfall of at least $48 billion in the fiscal year that starts July 1, according to the Center on Budget and Policy Priorities (CBPP), a liberal think tank.

The National Association of State Budget Officers estimates that spending by all 50 states will be up 1% in fiscal 2009. But that would be the third lowest increase in the past three decades. .....(more)

The complete piece is at: http://money.cnn.com/2008/06/23/news/economy/local_government_layoffs/index.htm

[HCE SuiGeneris]

1. I think maybe it's time to divert some hundreds of billions of dollars

away from the military and into the management of our internal affairs.

Just a thought...

[Mountainman]

2. Our union, SEIU 206 agreed with the county that all of us would take

two weeks off without pay in exchange for the county not laying anyone off. We will all share the pain. We will work it off by giving up 3.5 hr's pay a pay period for the next year. We put it to a vote and that was the outcome.

Form a union, it's the only way you have a say in what happens!