States Predicted to Cut 400,000 to 900,000 Jobs Next Year, Due to Budget Shortfalls

[amborin]

State, City Government Job Losses Estimated 400,000-900,000 Due to Budget Shortfalls

Moody's has estimated 400,000 jobs from State, City and Local governments will be lost next year due to budget cuts.

Up to 400,000 workers could lose jobs in the next year as states, counties and cities grapple with lower revenue and less federal funding, says Mark Zandi, chief economist for Moody's Economy.com.
The Center for Budget and Priorities has the estimate much worse, a total of 900,000 jobs affected.
it will slow the economic recovery and raise the risk that the nation will fall back into recession as the loss of Americans’ spending power ripples through the economy. States’ actions to close their $140 billion gap without more federal aid could cost the economy up to 900,000 public- and private-sector jobs.




More estimates:

Wells Fargo economist Mark Vitner expects state and local governments to cut about 200,000 workers this year if Medicaid benefits aren't extended. That's largely why Wells Fargo cut forecasts for third-quarter economic growth to 1.5% from 1.9%.
Even if Congress extends Medicaid subsidies, Zandi expects 325,000 job cuts the next year, though Vitner says losses could be far less.

It appears much of the cuts have to do with help to the elderly and poor and Medicaid. Below is the list of cuts already and one must ask if states are not purging the roles of ineligible people and what are they doing about Medical costs. Denying an American equipment to help them breath is truly a scary thought and this is one of the cuts listed. The below current cut list and budget graph is from the Center for Budget and Priorities.

•An estimated 10,000 families in Arizona will lose eligibility for temporary cash assistance as the time limit for that assistance is cut back to 36 months from 60. Over 1 million low-income Arizonans will lose access to Medicaid services offered by the state, including emergency dental services, medically necessary dentures, insulin pumps, airway devices for people with chronic lung disease, gastric bypass surgery, certain hearing aids for the deaf or severely hard of hearing, and prosthetics. Arizona also will eliminate a host of behavioral health services for 4,000 children ineligible to receive such services through Medicaid, and will eliminate case management, therapy, and transportation services for 14,500 individuals participating in a non-Medicaid program for the seriously mentally ill.
•Georgia will eliminate as many as 284 eligibility workers who help low-income families enroll in the food stamp, Medicaid and TANF programs. Eligibility workers are being cut even as an increasing number of families are qualifying these programs due to economic hardship.
•Idaho’s Department of Health and Welfare will reduce or eliminate cash assistance to 1,250 low-income elderly adults and people with disabilities.
•A Kansas reduction in grants to Centers for Independent Living will result in a loss of services for nearly 2,800 individuals with a disability.
•Minnesota residents successfully transferring from welfare to work will see monthly cash bonuses that they receive from the state cut in half (from $50 to $25).
•Oregon will make significant cuts to community mental health programs, reducing access to crisis services, acute psychiatric treatment, medications and case management services for 1,462 Oregonians with mental illness.
Other cuts to programs and services resulting from spending reductions in states’ 2011 budgets have already been implemented or will take effect later on in the new fiscal year:

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http://www.economicpopulist.org/content/state-city-government-job-losses-estimated-400000-900000-due-budget-shortfalls

[Karmadillo]

1. K&R. I just hope all that unemployment & suffering doesn't make our representatives sissies who

end up voting to cut funding for our kickass military machine.

[sandnsea]

2. But but.. the Recovery Act did no good!

People better start paying attention to who they need to be fighting with and who they need to be fighting against.