State Workers, Taxpayers Caught in a Fiscal Vise

by Mike Hall, Feb 27, 2009

John Meeks (third from left) and his gifted world geography class at Mayport Middle School wear red to show their support for the Florida Education Association’s “Education Cuts Hurt” campaign. The Atlantic Beach school’s students, faculty and staff participated in the effort to raise public awareness about education funding. “I hope that we can realize the value of education and work to ensure that we follow through with greater investment in our future,” said Meeks.

The badly needed economic recovery package included some substantial assistance for states that are facing growing budget shortfalls, possible layoffs and cuts in vital services. But despite critics’ noise about the amount of spending in the package, even with that helping hand, the fiscal outlook for states is still “dire” and likely will worsen, says the Center on Budget and Policy Priorities (CBPP):

The state fiscal situation is dire. Revenues are declining, and the need for services such as Medicaid is rising as people lose income and jobs….If revenue declines persist as expected in many states, additional budget cuts are likely. Budget cuts often are more severe in the second year of a state fiscal crisis, after reserves have been largely depleted and thus are no longer an option for closing deficits.

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