Posted by Ray Haynes at 12:00 am on Feb 06, 2009 Comments Off on So why are state employees immune?
I read yesterday’s Flashreport with all of the stories in the
mainstream media about laying off, and furloughing, state
employees, and the negative impact that is having on state employee
morale.
But look what is happening in the private sector.
Thousands of private sector workers are losing their job, which is
having a negative effect on state income and sales tax revenue, and
that drop in revenue is resulting in state deficits. These
deficits leave the state with the options of cutting spending,
raising taxes, or both. Raising taxes will reduce private
sector spending, costing more private sector jobs, further reducing
income and sales tax revenues, and quite frankly, reducing the
effectiveness that any tax increase may have toward increasing
state revenue. Quite frankly, raising taxes will make the
short term revenue problems worse.
Cutting spending will cost government jobs, for sure, but lots
of people are losing their jobs right now. Government
workers, and government worker unions, think that somehow they
ought to be immune from these economic ups and downs. They
always want more spending when revenues are up, and they never want
to cut… Read More