Confronted with a federal deficit in excess of $311 billion for the first half of FY 2008 and a nationwide state budget shortfall of $39 billion, government hiring continues unabated. Federal, state, and local public sector employment grew by more than 76,000 jobs in the first three months of 2008, to a total of 22.39 million.
Local government units expanded the fastest – hiring 47,000 additional personnel. Not far behind, the federal government workforce grew by 13,800, and state government by 16,000.
Irresponsible government spending certainly isn’t anything new, but the record-setting pace at which it’s occurring should concern taxpayers. Over the last 15 years, government payrolls have increased by 40% (after inflation) to a record $60.74 billion in March 2006 – despite a recession in the early 2000’s.
To pay for these additional public servants, state and local leaders are mysteriously relying on tax revenue that has remained flat since mid-2007; projections indicate collections will remain this way for the foreseeable future. To sustain itself, lawmakers will soon have to raise taxes or find creative ways to generate state revenue to pay for bloated state and local governments. The federal government operates with the more nonchalant attitude of “just put it on my tab.”
Operational efficiency shouldn’t be relegated to the private sector alone, especially in difficult economic circumstances.
– James Quintero