Board of Economic Advisors to examine deeper cuts

Staff Report
Published Dec. 10, 2008

The state’s Board of Economic Advisors meets this afternoon and might recommend deeper across-the-board budget cuts as the recession hits the state’s budget.

Many are anticipating a recommendation of another 4% cut as tax collections are behind the state’s forecast. The Budget and Control Board will discuss the issue Thursday.

Slow holiday sales and high unemployment are forcing the cuts.

University of South Carolina economist Paulo Guimaraes said last week that, in a typical recession when the private sector is laying off workers, government steps in with hiring. But that is not occurring. The state government is not filling many open positions, and many agencies are mandating that employees take furloughs.

The state Forestry Commission announced that all of its employees will be furloughed for five days, a move that will save $250,000. The commission employs about 380.

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Comments:

Added: 10 Dec 2008

you haven't seen any thig yet. 1929 is going to look like a block party.

david


Added: 11 Dec 2008

When the consumer and business/industry stops spending the only other entity to spend money is the government, and that includes state government. But that is not happening

bill


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