Spending cuts in the state budget are expected to eliminate thousands of Virginia jobs, a new study suggests (click here).
The study says that Virginia will lose 37,000 jobs over the next two years.
The report, released Wednesday by the Commonwealth Institute for Fiscal Analysis, also indicates that the ripple effects of a thinning work force could slow an economic recovery.
According to HamptonRoads.com, the analysis by the public-policy think tank comes less than two weeks after the General Assembly adopted a biennial budget that overcame a more than $4 billion shortfall partly through deep funding cuts to education and health programs.
“Our lawmakers have refused to acknowledge that the cuts that they’ve included in the budget are going to result in substantial job losses, not gains,” Michael Cassidy, the institute’s executive director, said during a Wednesday news conference.
“At a time when Virginians need ladders to get ourselves out of this deep economic hole that we are in, our lawmakers are handing out shovels and digging the hole even deeper,” he said.
Cassidy said the projected job losses would exceed the number of people currently unemployed in Virginia Beach, Richmond, Danville, Arlington County and Charlottesville combined.
They also would “dwarf the gains that have been projected for various economic development initiatives, business tax breaks and credits.”
(more…)