UPDATED: Think tank says 37,000 jobs to be lost from Virginia budget cuts
The Commonwealth Institute for Fiscal Analysis this morning released an analysis of the two-year budget adopted earlier by the General Assembly arguing that the budget will result in the loss of 37,000 public and private sector jobs.
The non-profit group, which generally favors progressive taxation and had advocated for a budget that would close the budget shortfall through some targeted tax increases instead of entirely through cuts, said they used a econometric modeling technique to judge state, local and private sector losses due to the drop in state funding in health and education.
Michael Cassidy, executive director of the group, noted 37,000 lost jobs would eclipse the 29,300 jobs Gov. Bob McDonnell (R) has said will be created through economic development spending the budget.
"To have the full picture, you have to put any of those gains against the losses that are quite real and quite substancial," he said.
He said the figure represents twice the number of jobs at Northrop Grumman's Newport News shipyard and the number of unemployed residents of Richmond, Virginia Beach, Danville, Arlington and Charolottesville combined.
Providing a think tank response from the other end of the political spectrum, Michael Thompson, chairman and president of the Thomas Jefferson Institute for Public Policy said tax increases would have led to more private sector job losses.
"Jobs are never lost when you leave more money in the private sector," he said.
UPDATE: Stacey Johnson, a spokesman for Gov. Bob McDonnell, responds: "The Governor knows that raising taxes on Virginians in tough economic times is bad fiscal policy. Richmond cannot attempt to balance its budget by making it harder for families and business to balance their own. The Governor's work to cut spending, not raise taxes, while investing in job-creating policies, will ensure that Virginia is well-positioned to create jobs and grow the economy in the years ahead. The Governor is focused on implementing the right policies in Richmond to spur job creation all across the Commonwealth."
March 24, 2010; 11:29 AM ET
Categories: General Assembly 2010 , House of Delegates , Robert F. McDonnell , Rosalind Helderman , State Senate
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