Let Local Government Face Reality–Coral Gables, Too
October 8, 2010 Leave a comment
If state and local government employment is falling, this is just to recognize that many of these governments over expanded employment, salaries and pensions during the real estate bubble. Coral Gables did this.
There are many years of adjustment that must be made in the local and state governments. Let’s hope that our local municipal and county leaders will face reality before they keep hitting up taxpayers, instead they need to do real deep adjustments in budgets, salaries and benefits, organization and prioritizing services. They keep postponing their own pain with the expectation that the economy will bail them out.
Regarding today’s employment report
“The private-sector growth is somewhat heartening but in total you have to expect that state and local and government jobs are going to be a drag for a number of months and perhaps a number of quarters,” Bill Gross, co-chief investment officer at Pacific Investment Management Co. in Newport Beach, California, said in a radio interview on “Bloomberg Surveillance” with Tom Keene. He called the report a “strong signal” for further Fed action.