Saturday, February 13, 2010

States: Send Money!

by Calculated Risk on 2/13/2010 11:30:00 AM

From CNNMoney: States to Senate: Send more federal aid

States are looking to the federal government for more help balancing their budgets, but the Senate is not heeding their call. ...

States are looking at a total budget gap of $180 billion for fiscal 2011, which for most of them begins July 1. These cuts could lead to a loss of 900,000 jobs, according to Mark Zandi, chief economist of Moody's Economy.com.

To close this gap, governors and lawmakers will be forced to lay off state employees, cut services and postpone capital projects ...
Already, states laid off 44,000 workers in the 12 months ending in January, according to federal labor statistics.
If Zandi is correct the vast majority of state layoffs are still to come.