The state has avoided major layoffs. That could change. The budget passed by the Legislature last week contemplates 5,600 layoffs, according to the Department of Finance. If certain tax revenue projections aren't met, additional spending cuts will ensue.
It's not clear how many layoffs would take place in Sacramento, which is home to one-third of the state workforce.
But Sacramento obviously has a lot to lose; state government is the region's largest employer and accounts for 10 percent of its jobs. The work, on average, pays $10,000 a year more than the private sector, according to data from the state controller and the Employment Development Department.
"You can't lay off a bunch of moderately high-wage workers and not expect to have an economic spillover effect," said Michael Shires, a budget and public policy expert at Pepperdine University.Sac Bee
Tuesday, July 5, 2011
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