Al Nassr secures 5-1 victory over Al Ain to edge closer to knockout stage    Saudi Deputy FM meets Lt. Gen. Al-Burhan of Sudan    Al-Khateeb: Saudi Arabia is the largest global investor in tourism sector "Saudi Land" pavilion inaugurated at World Travel Market in London    Saudi Crown Prince, Japanese PM discuss over phone efforts made to achieve peace in the region    Saudi Arabia, in its drive to enrich Arab culture, launches Arab Week at UNESCO in Paris    Neymar exits Al Hilal match with muscle injury, leaving fans disappointed    AlHisn Big Time Studios unveiled to transform film and TV production in Riyadh    Saudi Arabia approves cooperation agreement with US for the use of outer space for peaceful purposes    Quality of Life Program CEO highlights Saudi urban transformations at UN-Habitat conference in Cairo    Almarai wins 'Best Corporate Sukuk' at Asset Triple A Islamic Finance Awards    Top climber falls to death after rare Himalayan feat    US voters flying home in time for election    Drones and snipers on standby to protect Arizona vote-counters    India's Modi condemns violence after Canada temple incident    Elon Musk can keep giving $1m to voters, judge rules    Mitrovic's hat-trick leads Al Hilal to 3-0 victory over Esteghlal    Al Ahli extends perfect start with 5-1 victory over Al Shorta    Quincy Jones, titan of US music, dies aged 91    Hidden sugars in Asia's baby food spark concerns    HONOR unveils pre-order of the stunning HONOR MagicBook Art 14 Featuring an ultra-slim design, HONOR Eye Comfort Display and AI Cross-OS WorkStation    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



US states turn from furloughs to layoffs
By Lisa Lambert
Published in The Saudi Gazette on 03 - 07 - 2010

For US states, the practice of furloughing employees to save money is going out of fashion while the more drastic step of laying off workers is becoming a more popular cost-cutting tool.
US state and local governments employ around twice as many workers as the country's manufacturing and construction sectors combined, so the switch to layoffs risks swelling already high unemployment in the United States.
“I can confirm that states are now moving to layoffs they had hoped to avoid,” said Philippa Dunne, who polls state leaders for the economic newsletter she co-edits, the Liscio Report. “To me, this is terrible timing because private hiring remains anemic, so piling on state and local layoffs is dangerous.”
The Center on Budget and Policy Priorities, a think tank tracking states' economies, found states' cumulative budget shortfall will likely reach $140 billion in fiscal 2011, which starts Thursday in most states, the largest shortfall since the recession began in 2007.
Because all states except Vermont must balance their budgets they will have to find ways to raise revenue or places to cut spending. This year may be tough because states have few places left to slash and taxpayers, badly bruised by unemployment and home foreclosures, have no appetite for extra taxes and fees.
According to a recent report from the National Governors Association and the National Association of State Budget Officers, 22 states used furloughs while attempting to close budget gaps in fiscal 2010, sending groups of public employees home without pay and closing offices.
That was nearly even with layoffs, with 25 states and Puerto Rico cutting positions during fiscal 2010.
To close budget gaps in fiscal 2011, only 13 states are adopting furloughs, or a little more than half the number that used the unpaid days in fiscal 2010. On the other hand, 19 are planning to turn to layoffs.
“The scale of the crunch that states – and local governments for that matter – are under suggests furloughs are not enough,” said Nicholas Johnson, a director of the state fiscal project at CBPP. “You can't just tell everyone to take a day off here and there and expect that will remedy the situation.”
Since the beginning of the recession, 200,000 state and local employees have lost their jobs, according to CBPP. Just since December, 81,000 state workers have been laid off, according to the US Bureau of Labor Statistics.
In May there were 5.2 million people employed by state governments and 27.7 million by local governments, according to BLS. That compares to 5.6 million workers in construction and 11.6 million in manufacturing.
“This is a big sector and trouble in it is big news, whatever one may think about government spending,” said Dunne.
That is especially true when the US jobless rate has been above 9 percent for 13 straight months. Analysts polled by Reuters expect Friday's jobs report to show that the rate rose to 9.8 percent in June.
Furloughs and layoffs increased in fiscal 2010 as tax revenue plunged dramatically due to high unemployment rates, the housing bust and continued economic recession.
The high initial dependency on furloughs showed states had not expected such a huge drop in revenues, said NASBO Executive Director Scott Pattison.
“Furloughs become more necessary when you have to quickly cut because money is coming in less than what you planned,” he said, adding that states are seeing more stable levels of revenue, allowing them to forecast more accurately.
Recent government data showed state and local revenue improved during the first quarter of 2010 from the first quarter of 2009, but only by 0.82 percent. Analysts do not expect revenue to return to pre-recession levels for years.
Furloughs are intended to save states money and public employees their jobs. However, the money savings are in dispute.
“The furloughs were seen as some help in the short run. The problem is that you don't save as much money as you hope,” said NGA Executive Director Raymond Scheppach, adding that states have to pay for benefits even if they skip a day of salaries.
According to California's budget office, the state saved $2.8 billion through its 46 furlough days from February 2009 to June 2010.
But California's Franchise Tax Board found the blanket furloughs may have also cost the state money. The board said in a February report that furloughing 5,300 of its workers cost the state seven times more money than it saved because the tax collectors were not around to take in revenue.
The board also said prisons and other facilities that cannot be shuttered for the day must hire temporary workers or pay current employees overtime. Meanwhile, furloughs at many agencies, such as the Department of Motor Vehicles, save no money but slow down service on days when offices are open.
Currently, in Washington state the public employee union is suing to scrap 10 furlough days the state legislature hoped would save $10 million. The state has “no way of determining the savings,” the union said in a legal filing.
But regardless of the potential savings furloughs offer, many states have had no choice but to lay off employees.
“There are just going to be a lot more terminations as opposed to the furloughs going forward because it's so bad,” said Scheppach.


Clic here to read the story from its source.