Report: Budget cuts will mean lost jobs
A report from the Maine Center for Economic Policy says that cutting the state budget to offset a more than $1 billion shortfall will result in lost jobs.
The report, "Maine's balancing act: Maintaining services, investing in the future," says that cutting spending by $1.1 billion and a drop in public sector investment could mean as many as 25,000 fewer jobs statewide. Laid-off state employees will curtail their spending, impacting local shops, and businesses that receive state contracts will also be adversely affected, according to the report. "Growth depends upon the public sector and private sector working together," it states.
But the Maine Heritage Policy Center is refuting that statement. Chief Economist J. Scott Moody told the Portland Press Herald that the public sector "crowds out" the private sector, and that money spent at the state level originates with the private sector. Moody argued that states with larger private sectors grow more quickly than those with smaller private sectors.
Go to the article from the Portland Press Herald >>
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