Paul Davidson-USA Today: Budget Cuts Claim Hundreds of Thousands of Jobs

Local governments, once a steady source of employment in tough economic times,, are shedding jobs in unprecedented numbers, and heavy payroll losses are expected to persist into the next year. The job cuts by city and county governments are helping to offset modest modest private-sector employment gains, restraining broader job growth. "They will continue to be a drag on the overall employment numbers and the economy." says Wells Fargo economist Mark Vitner. Localities have chopped 535,000 positions since September 2008 to close massive budget deficits resulting largely from sharp declines in property tax receipts. That exceeds the 413,000 local government employment, according to federal records that go back to 1955. Christopher Hoene, research director for the National League of Cities, estimates an additional 265,000 or so jobs could be eliminated by the end of 2012. The cuts so far have mostly come since the recession ended in mid-2009, although they do not yet top those made in manufacturing and construction during and after the recession. Local government budget woes are continuing even as state layoffs have eased amid a modest rebound in consumer spending that has lifted state sales tax revenue.