State Layoffs On The Rise

The next line of bull out of Washington will be that the last stimulus wasn't big enough - as opposed to facing the facts that nothing the federal government can do will help the economy (other than leaving it alone).

States slash jobs despite stimulus $$
Weakening economy forces states to lay off workers even as officials implement stimulus programs designed to create and save jobs.

By Tami Luhby, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- Virginia's Department of Transportation is putting $694.5 million in stimulus funds to work repairing the state's roads and bridges. But that money won't save the jobs of nearly 1,500 of the agency's workers.

Facing a $2.6 billion budget shortfall over the next six years, the department is laying off a thousand full-time staffers over the next 18 months. Another 450 part-time workers were already let go.

States across the nation are laying off workers, even as they deploy billions of dollars of stimulus funds meant to stabilize the economy by creating or saving jobs.

Governors and legislatures are scrambling to close gaping shortfalls in their budgets as the recession decimates tax revenues. Having already cut spending and raised taxes and fees, officials increasingly are eyeing their payrolls as a way to balance their budgets.

Government jobs have long been considered secure, especially since many workers are in unions. Even during recessions, the cuts often aren't as deep.

Read More Here: http://money.cnn.com/2009/06/09/news/economy/states_lay_off_workers/index.htm?postversion=2009061011