Jobs

States Cutting the Most Government Jobs

6. Massachusetts
> One-yr. change in state govt. jobs: 0.96%
> One-yr. change in local govt. jobs: -1.50%
> Budget shortfall FY 2012: $1.8 billion
> FY 2012 shortfall as a pct. of budget: 5.5%

From June 2011 to June 2012, the total number of jobs in Massachusetts rose by 1.4%. Moderate job growth also extended to the state government workforce, which grew 0.96%, or 1,100 jobs. This increase in state workers was at odds with the Massachusetts’ stated plans to cut workers to reduce a fiscal 2012 total budget shortfall of $1.8 billion. Though job cuts did occur at the local level as local governments eliminated roughly 4,100 positions. As of June 2012, slightly less than 12% of Massachusetts workers held state or local government jobs, less than all but three other states.

7. Michigan
> One-yr. change in state govt. jobs: -0.18%
> One-yr. change in local govt. jobs: -3.03%
> Budget shortfall FY 2012: $767 million
> FY 2012 shortfall as a pct. of budget: 3.5%

Only five states added more jobs than the roughly 62,000 Michigan added between June 2011 to June 2012. Despite overall growth, the number of state employees barely changed year-over-year, while local governments cut a net of 12,000 active positions, or 3.03% of all local government workers — more than all but three other states. The state planned to use layoffs, cuts to employee benefits, and privatization to trim its deficit despite Michigan’s $767 million budget shortfall for fiscal 2012 representing just 3.5% of the state’s budget. Though the state is not expected to have any budget shortfall to close in fiscal 2013, an expected decrease of nearly 46.6.% in corporate income tax revenue and slow sales tax revenue growth could put a dent in its efforts to eliminate its budget deficit.

8. Missouri
> One-yr. change in state govt. jobs: -1.71%
> One-yr. change in local govt. jobs: -0.32%
> Budget shortfall FY 2012: $704 million
> FY 2012 shortfall as a pct. of budget: 8.8%

With a net decrease of 9,700 jobs, Missouri is just one of seven states in which the total number of workers declined between Junes 2011 and 2012. Despite a $704 million budget shortfall, Missouri eliminated fewer government jobs than many other job-cutting states–perhaps because of the state’s weak labor market. Over the year ending in June 2012, 1,600 state government jobs and roughly 900 local government jobs. Balancing its budget has required Missouri to make across-the-board cuts, and the state has been especially tough on its public university system. According to the Columbia Missourian, the state will have cut the University of Missouri system’s budget by $75 million between fiscal years 2010 and 2013.

9. Nebraska
> One-yr. change in state govt. jobs: 2.83%
> One-yr. change in local govt. jobs: -0.44%
> Budget shortfall FY 2012: $166 million
> FY 2012 shortfall as a pct. of budget: 4.8%

As of June, Nebraska had strong year-over-year job growth. The state’s number of total employees increased 1.6%, from about 953,400 to 968,700. State government job growth was actually similarly strong as Nebraska added about 1,100 jobs, a 2.83% increase. Interestingly, the state did not cut government jobs even though layoffs were part of its strategy to eliminate its budget shortfall of $166 million for fiscal 2012. Unlike the state’s government,  local governments did have to make job cuts. Amid reductions in financial aid from Nebraska localities’ governments cut a net of some 500 jobs between June 2011 and 2012.

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10. Nevada
> One-yr. change in state govt. jobs: -2.62%
> One-yr. change in local govt. jobs: -1.99%
> Budget shortfall FY 2012: $1.2 billion
> FY 2012 shortfall as a pct. of budget: 37.0%

At both the state and local government levels, job losses in Nevada were quite high between June 2011 and June 2012. The state government cut roughly 900 net jobs, or 2.62% of all workers, and the local governments lost roughly 1,900 jobs, almost 2% of all their workers. Nevada’s estimated $1.2 billion budget shortfall for fiscal 2012 stands at 37% of the state’s budget. Proportionally, this was the second-largest deficit nationwide. As the state sought to eliminate the deficit, the layoffs were supplemented by furloughs, early retirements, salary reductions, benefit cuts and agency reorganizations. As of June, only slightly more than 11% of Nevadans were either state or local government workers, a smaller percentage than all but two other states.

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