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Think tank says 37,000 jobs will be lost from budget cuts Date published: 3/25/2010
BY CHELYEN DAVIS RICHMOND --A think tank estimates Virginia's budget plan, adopted just over a week ago by lawmakers, will result in the loss of 37,000 jobs in Virginia.The Commonwealth Institute, a nonprofit group that analyzes state fiscal issues and their impact on low-income people, released its report yesterday at a press conference. Director Michael Cassidy said the institute looked at cuts to health care and education in the budget passed by the General Assembly and estimates that those funding cuts will result in both job losses and a $2 billion reduction in economic activity in the state. Some of the group's estimated 37,000 job losses in the public and private sectors are from the trickle-down effect of laid-off workers spending less money. Cassidy said he hopes the report will show lawmakers the consequences of balancing a budget--which had a $4 billion shortfall--primarily by making cuts instead of increasing revenues, something Cassidy and the institute have advocated. Cassidy said there was "frustration" during the just-ended session over "the refusal of lawmakers to acknowledge there are alternatives that include new revenues." He said he does not believe that targeted tax increases hurt private-sector jobs, as many of those who opposed tax increases in this economy have argued. Cassidy said the budget cuts "bring the budget into balance on paper" but that cuts that lead to job losses will be a further drag on already-slow economic recovery. "This report documents the consequences of their action," Cassidy said of lawmakers. "They have to take into account the drag that their choices in this area will have." The report does not factor in estimates from the governor's office that Gov. Bob McDonnell's proposals to spur economic activity could help create about 29,000 jobs. State lawmakers passed the budget March 14 and then adjourned their session. Now McDonnell has it, and can make changes to it, but largely the budget is a done deal. Cassidy said he and others tried to tell legislators earlier in the session that cuts to services would lead to job losses, but that other groups, such as the Virginia Education Association, were brushed off as being biased. He said he also hopes the institute's report serves as a warning for something that's less set in stone than the state budget--federal economic recovery proposals. Cassidy said the economy is not rebounding as fast as was expected when Congress initially passed stimulus efforts, and that his group's report helps encourage Virginia's congressmen to pursue extending fiscal relief for state governments. Chelyen Davis: cdavis@freelancestar .com
wait until you see the impact of cap &tax (trade)
govt jobs are supported by taxes from the people
we need less not more govenment
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