Connecticut issues layoff notices
The governors are getting it done. And it’s painful.
From the Wall Street Journal:
After months of closed-door talks with state employee unions, Connecticut Gov. Dannel Malloy announced that no deal could be reached to garner $1 billion annual concessions needed to close a $3.5 billion budget gap.
“The state employee representatives have thus far not offered enough,” Malloy said in a statement Tuesday morning.
To balance the two-year $40.1 billion budget and comply with contractual layoff notice requirements, Malloy said layoff notices would go out Tuesday to “the first 4,742 state employees,” resulting in an estimated savings of $455 million. The remaining $545 million in savings would be achieved by cuts to government programs, which could result in additional layoffs.
Ohio could sell prisons, maybe turnpike
Ohio is moving towards selling off public assets to reap a one time benefit to plug its budget deficit.
I’m not convinced that asset sales, at firesale prices, are really beneficial for the public in the long run. I’d be very interested in any research that addresses the issue.