"Each time there was a recession with a Republican president," he
said, "we compensated by making sure that government didn't see a
drastic reduction in employment."
If governments still employed the same percentage of the work
force as they did in 2009, the unemployment rate would be a
percentage point lower, according to an analysis by Moody's
Analytics. At the pace so far this year, layoffs will siphon off $15
billion in spending power. Yale University economists have said that
if state and local governments had followed the pattern of previous
recessions, they would have added at least 1.4 million jobs.
Conservatives have argued that governments were bloated after a
hiring surge during the housing boom and are now returning to a more
appropriate size. Michael D. Tanner, a senior fellow at the Cato
Institute, criticized the president's budget proposal to give states
an additional $30 billion for teachers, police officers and
firefighters. "Those new public sector jobs must be paid for with
more debt and taxes borne by the private sector," he wrote.
But those with disappearing jobs say that the effects are not
just economic -- they mean longer response times to fires, larger
class sizes and in some cases lawsuits when short-staffed agencies
are unable to provide the required services.
After 32 firefighters were laid off in Muncie, Indiana, the area
that could be reached by firefighters within eight minutes was cut
in half, said Mike Whited, the president of the firefighters union.
A federal grant restored 25 workers, but the city does not know
whether it will be renewed.
Mr. Whited chafed at portrayals of public workers as overpaid or
greedy, saying his union and others had made concessions, including
paying more for their health insurance and forfeiting raises. "I
think a lot of people don't understand what we do," he said.
"They're looking for somebody to blame, and I think they're being
led the wrong way."
Businesses can also be hindered by government cuts. They not only
lose prospective middle-class customers but may face long waits for
services. Roland Pott, a real estate broker and developer in
Trenton, said that fewer city inspectors adds to construction
delays. And the shortage of police officers means he has to assuage
the safety concerns of prospective tenants. "It makes it harder to
lease a space or market a space because people are choosing between
Trenton or another area," he said.
Even if the overall economy improves, local governments are
likely to lag behind. Property tax receipts, which are projected to
fall slightly in 2012, "will be weak through at least fiscal 2014,"
Daniel White, an economist at Moody's Analytics, wrote in a report
this month. "As a result, local government fiscal conditions will
remain under pressure."
Jobs in education have accounted for more than half the losses in
local governments. Teachers and other school employees continue to
receive layoff notices in California, Colorado, Nevada and Ohio,
among others. In Los Angeles, about 11,700 teachers and others were
notified in the spring. On Saturday, the teachers union ratified an
agreement to save more than 4,000 jobs by taking furlough days.
To close a $64 million budget gap, the district in Clark County,
Nevada, which encompasses Las Vegas, sent layoff notices to 400
teachers this month and will not fill 600 openings.
In Cleveland, the school district cited a $66 million budget
deficit when announcing the layoff of more than 500 teachers this
spring. David Quolke, president of the Cleveland Teachers Union,
said the announcement followed two years of cutbacks and $25 million
in concessions from the union. He said that some classes would have
more than 40 children.
Kimili Gulley, 32, has been teaching middle and high school
mathematics for nine years and expected her tenure to provide
protection. But this month, she too is out of work. "So much
emphasis is put on educating kids," she said, "and yet funding is
getting cut when it comes to educating kids. So it's kind of
hypocritical."
CORRECTION:
As published in the International Herald Tribune
An article on Thursday about increasing layoffs in local
government misstated the number of government jobs lost since the
postrecession peak in April 2009. It was 706,000 -- not 657,000, the
number of jobs lost since May 2009.
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As Companies Gain, Public Jobs Dwindle
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Source: (C) 2012 International Herald Tribune. via ProQuest Information and Learning Company; All Rights Reserved
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