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Friday, January 14, 2011

Yes, there will be layoffs

We had a Senate Republican caucus meeting today where we got together and talked about the budget. Later some of the governors staff came in to talk about the governors agenda, plans for the new year and answer questions.

We got a short rundown on some new appointments, vague talk of looking for efficiencies, higher quality of service and better education.

I had to ask the question.

I commented how this years budget has already called for a billion five worth of layoffs that had not been implemented yet and next years budget was probably going to be 900 million to a billion two short of that. I went on to comment how any realistic economic recovery, natural attrition and buyouts were not going to cover a 2.5 billion dollar shortfall. I asked by what magic trick the governor planned to ballance the budget without any layoffs.

Long and short, they said they had not had much of a chance to really dig into the budget and were still trying to get a staff together to find out what they could do. They went on to say that they will probably end up having to look at some layoffs before it is all said and done.

3 comments:

  1. Typical knee-jerk reaction before the facts are in. Already wants to lay people off before the real budget numbers are in and for the fifth month in a row revenues exceeded projections. Look out teachers!

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  2. Well the 1.5 billion in layoffs are part of the budget we passed last year for this year that have not gone into effect yet. If they do not go into effect you can say we are automatically 1.5 billion in the red from where we thought we would be at this point in the year.

    The $900 million additional deficiency is the best possible number we can glean from all projections with the added revenue growth factored in at similar rates to current growth . Yes, the exceeded projections are factored in.

    Without a federal "state stimulus II" package (Not likely) this is one of the most reasonable up to date projections.

    We were looking at bigger deficits if the growth falls off.

    We can all hope for pie in the sky but even if rate of growth suddenly doubled or even almost tripled we would still need cuts to balance the budget.

    Sorry. It's time to get real.

    ReplyDelete
  3. Of course they'll be layoffs. The Dems kicked the can down the road so they don't get blamed for it. However, we need to make the message about how the Republicans are cleaning up the mess the short sighted, self-serving Dems created. Don't go wobbly.

    ReplyDelete

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