In what is surely to become a screaming nation-wide trend, New Jersey state Governor, Jon Corzine has given fair warning that most likely he'll soon be cutting heads. A report from Reuters News Service, in referencing comments from Barbara Buono, chair of the state Senate budget committee, indicated that Corzine is considering "consolidation scenarios" as remedy for a $2.5 billion state budget shortfall.
It is being speculated that payroll reductions of as many as 3,000 employees might be accomplished through early retirement offerings, but the long term effects of that solution on existing pension funds have yet to be fully examined. Buono told Reuters, "Our understanding is that (Gov. Corzine) doesn't anticipate layoffs." I interpret that to mean the pink slips shall be forthcoming.
Similar scenarios are certain to begin looming across the entire nation as property tax roles begin to feel the affects of massive real estate devaluations. As 2008 property tax bills begin to arrive in the hands of homeowners, there are surely going to be widespread demands for reassessment of properties to properly reflect value losses inflicted over the past 12 months. The cascading effect will mean that municipalities shall soon begin to see decreased funding for local operations. Government employee payroll populations shall soon begin to come under very close scrutiny.
The snowball is just getting started, in New Jersey no less.
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