Morning Read: Layoffs “imminent” at Plattsburgh State
The big untold story of the last six months of this recession is that most of the job cuts are coming not in the private sector, but in government.
We’re seeing the “public sector bubble” burst, as tax revenues are either stagnant or in steep decline.
The latest hit to the North Country is news that New York state is still $315 million in the red, despite deep cuts earlier in the year.
The Plattsburgh Press-Republican is reporting that all that red ink will cost more jobs soon.
“It clearly means we are going to be smaller,” said John Homburger, vice president for administration and business affairs.
“There are no layoffs yet, but I think the reality is imminent now, and it is a matter of just how.”
This is part of a much bigger trend. The US Department of Labor reported that in October, private industry added nearly 160,000 new jobs.
Government agencies — local, state and Federal — slashed another 8,000. This trend delights fiscal conservatives.
But some economists worry that the government cuts are coming too soon and will depress local economies, possibly pushing us until a “double-dip” recession.
Tags: champlain valley, economy, education
I know I sound like a broken record (does anyone still have records anymore? I mean besides Radio Bob) but if Gov’t in general had been more conservative is their hiring practices and looked ahead instead of assuming the Goose would keep laying Golden Eggs these folks wouldn’t be losing their jobs.
Generally, I would agree with Bret that we have to have governmental cuts, but there are some caveats and exceptions. Many of our state funded colleges have actually seen increased enrollment, and are growing. The other piece of this, of course, is that two years ago, NYS raised tuition and then put 90% of the increase into the general fund. Returning the funding to the colleges where it is needed would greatly help places like SUNY Plattsburgh keep needed staff.
As for the larger issue. the post raises, austerity and wide spread frugality in an economy where two thirds is based on consumer spending would cause a sustained period of minimal growth like the lost decade Japan went through a few years ago.
I agree with both of the above.
Do expect the Lost Decade here.
The sad part is it’s regular Joes and Jills that’ll lose their positions. It won’t be the brass, the higher echelon adminstrators, the guys that made the decisions to hire and ignore the possibility things would change.
The Gov’t giveth and the Gov’t taketh away…
They should start with Albany before any local cuts are made. But I bet they will do the inverse. In fact I would bet the Albany sponge continues to get huge bonuses and raises.
Dream on Mervel, dream on. My former employer could dump 50% of the brass and still perform in an outstanding manner. The same probably goes for most State Agencies.
The top brass will continue to get their chauffers, big bonuses, expense accounts, cooks, and all the rest.