US state governments prepare attacks on jobs, wages, pensions

[Hannah Bell]

January 1 marked the beginning of a three-week period in which new governors take office in more than half the 50 American states, including three of the four largest—California, New York and Florida.

Whether Democratic or Republican, the new state chief executives are planning major attacks on public employees and public services, including huge budget cuts and mass layoffs. In the 26 states with new governors, 23 face budget deficits, according to the Center on Budget and Policy Priorities.

The National Conference of State Legislatures forecast that the combined state deficits this year will reach $83 billion, somewhat less than in 2009 and 2010, but requiring even greater cuts than in those years because the Obama administration’s stimulus bill provided federal assistance to the states that has now been exhausted.

Forty-nine of the 50 states (all but Vermont) must by law balance their budgets each year, and nearly all of the incoming governors have publicly sworn off any new taxes on the wealthy or big business, making drastic cuts in public spending or increases in regressive sales and excise taxes their only policy options.

Since state and local government spending accounts for about one-eighth of the US gross domestic product, these cutbacks will have a sizable effect on the US economy and add to the likelihood of a further downturn, or “double-dip” recession.

Both the Obama administration and Republican congressional leaders have made it clear that there will be no further federal assistance to bankrupt state governments. In a clear signal on how both big business parties plan to treat public employees, Obama last month ordered a wage freeze for all federal government workers.

A prominent Republican consultant, former White House aide Ed Rogers, wrote in the Washington Post Sunday that the biggest political shock of 2011 was likely to be “public-sector labor strikes and demonstrations that could stray into civil disorder as state and local governments cut budgets… The same kind of protests that have rocked Paris, London and Rome could erupt in California, New York and Illinois.”

http://www.wsws.org/articles/2011/jan2011/stat-j03.shtml

[tcaudilllg]

1. Let's hope!

All the more fuel to clean Republican clocks in 2012.

[tinymontgomery]

2. Longer lines, poor service

Wait till the people have longer lines, poorer service, then they will complain even more about how lousy public employees are. They won't understand cause and affect.

[Karmadillo]

3. But we have plenty of dollars for criminal wars, bankster bailouts, & tax cuts for the rich.

It's amazing how passive we are as these thugs dismantle this country.