Subject: TSEU News Bulletin: Losing 9,600 state FTEs could mean more than 23,000 jobs lost across Texas
TEXAS STATE EMPLOYEES UNION / CWA LOCAL 6186
Multiplier Effect: Losing 9,600 state FTEs could mean more than 23,000 jobs lost across Texas
In an interview this week with the Public News Service, Eva Deluna Castro of the Center for Public Policy Priorities warned of the greater damage that could be done to Texas by cutting almost 10,000 state jobs. "There is a multiplier effect. When you eliminate a public-sector job, its like 2.4 jobs are lost. For every single public sector job that is eliminated 1.4 jobs in the private sector are lost, " said Castro.
This is called the multiplier effect.
The proposed budget bill that came from the Texas House of Representatives calls for the elimination of more than 9,600 full time staff from the state budget. Taken into account with the multiplier effect, this could amount to the loss of over 23,000 jobs in the economy. The Senate's version of the budget that came out this week recommends cutting slightly fewer positions, about 8,167. However that could still mean the loss of more than 19,600 jobs across the state.
Coupled with projected losses to public school funding that may eliminate as many as 100,000 kindergarten through 12th grade public school employees, the final cost for the state's economy could add up to more than 263,000 lost jobs.
The Texas multiplier effect has been well-researched, with Castro pointing out that it is commonly used to argue in favor of business tax incentives - but is rarely examined when jobs are lost. She adds that another consideration in the budget debate and state layoffs has to do with the kinds of positions that would be eliminated.
"The state is a huge contributor to the economy through health care and through schools, both of which are the largest employers - at least, in most communities."
Texas legislator, Rep. Mike Villareal (San Antonio), is proposing an amendment to the state budget that would require the state to calculate the extent of job loss associated with the massive funding cuts. "The Republican budget proposal would destroy thousands of jobs as Texas families still struggle with a high unemployment rate," said Rep. Villareal. "We need to make sure legislators understand the impact of the budget before the vote on it."
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