The State Worker: Budget forecast shows things could go from bad to worse

More grim news Wednesday for state workers: California's general fund faces a $21 billion deficit through the middle of 2011. The red ink could flow for years to come, according to a forecast by the nonpartisan Legislative Analyst's Office.

The state's 200,000 or so workers, already taking a 15 percent pay hit from three furlough days per month, knew this was coming. What does the state's rotten financial picture mean to them?

• Real job cuts. Gov. Arnold Schwarzenegger already has ordered 7,000 jobs eliminated from the deficit-ridden general fund. And as this column reported a few months ago, the administration has run scenarios cutting another 5,000.

Schwarzenegger spokeswoman Rachel Arrezola said Wednesday that it's "likely" that the governor will look at employee compensation expenses as part of a wide range of cuts for the 2010-11 budget.

• Fewer transfer options. In the past, a state worker facing layoff could figure on sliding into an open position safe from budget whacking. But the state's finances have been so bad for so long that many departments swept out their vacant slots and have tightened hiring.

Maybe if gas hits 10 a gallon here.

This state is effed up. The electorate is dysfunctional.
I have no idea how bad it must get before it wakes up.
It may never wake up. For decades these problems have been seen coming yet.... ??? Democrats and RINO rule the roost again and again and again and again with more of the same over and over.

During all of this they keep growing the number of state employees too. I mean what does it take?

It’s insanity.

Oregon and Washington are following close behind, and when the collapse comes all three will go down the fiscal toilet. Think unemployment is high right now?? Wait until the entire West Coast starts laying off Public employees en masse, when the Federal money finally runs out.

A few examples:

Here locally in SW Washington where unemployment is at 13.7% and rising, the School Board is asking for a two year “maintenance levy” which will increase property taxes for the next two years. That very same School District also employs over 100 “Administrators” that get paid over $120,000 annually. Just how many “Assistant Principals” do we need?

Last year, one of the State-paid University Presidents announced his personal sacrifice by forgoing a raise to his over $600,000 annual salary. I’m breathlessly waiting to hear what his “sacrifice” will be this year.

The County is facing $12 Million (at least) in budget cuts next year, and the City is looking at drastically cutting a number of services. At the same time, the Columbia Crossing Project continues to spend over $1 Million Dollars per month on a project that will likely never see the light of day because of the insistence of Federal Transit authorities that the Interstate 5 bridge over the Columbia River include light rail, or there will be no Federal funding at all.

Never mind that they are ignoring who funds “The Feds”...

Tolls are estimated to be at least $1300 annually for local residents who commute to work, and likely will go much higher if “peak tolling” schemes are implemented that could drive tolls as high as $7.50 at rush hour. Tolling alone would extract as much as $39 Million Dollars from the local economy alone, or what remains of it.

The fact is that just in Clark County Washington alone we are short 30,000 jobs. Thirty thousand jobs against a local population of around 410,000 in the County. The surrounding Counties in SW Washington aren’t doing any better.

City, County and State (Union) workers in all States are in for a rude awakening very soon, and the unemployment rates will spike through the roof when all of those layoffs come, and they will be happening shortly after the Holidays. I’d look for most places to wait at least until January 1st to start hacking at the Payroll...

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