EDITOR'S NOTE -- Contributing columnist, Steve Nicklas, expresses his views and insights on various topics of local interest in STEVE'S MARKETPLACE. __________
One of the few bright spots in a weak national employment
report this month was an increase in government jobs.
But after closer inspection, this bright spot does nothing but shed light on a disturbing trend. Government jobs are mostly funded by tax dollars. And since when did government at any level become an employment agency, especially as private businesses are paring payrolls?
In fact, government jobs not only increased in June -- by 29,000 -- but they have grown by 250,000 over the past year around the U.S. This is not so much at the federal level, but in local governments.
This is not the case in Florida. Here, many city and county governments are reducing their workforces to abide by state- and voter-mandated tax cuts. The reductions are widespread, and sobering.
Palm Beach County may lay off 100 employees, from a staff of 6500. The ultra-affluent city of Naples is considering layoffs. St. Lucie County cut 12 employees and accepted buyout offers from more than 80 others. The state is offering 80 probation officers lower-paying jobs in Florida prisons.
Even the University of Florida is getting into the act. The largest state university will lay off 20 faculty members and 188 staffers, and not fill 290 empty positions. Also, enrollment will be reduced by 1,000 students.
In Volusia County, school teachers are getting fired. A declining student enrollment has forced officials to reduce the headcount of teachers -- since there are fewer students. Newer instructors without tenure will be the first layoffs.
The decisions are not easy ones. In Brevard County, six court workers were released at a time when caseloads are on the upswing. These include child custody, divorce, foreclosure and landlord-tenant disputes.
By eliminating the six positions in Brevard and three positions in nearby Seminole County, some $500,000 will be saved in salaries and benefits. But the civil and family courts will feel the brunt of the reductions. Now, it will take longer to process a variety of court cases.
Here in Nassau County, it appears from the website there are no vacant positions being advertised. The city of Fernandina Beach, however, is looking to hire for seven positions, but most of these are part-time or seasonal.
Fernandina Beach officials have been criticized over the years for acting as an employment agency here. In years’ past, many new graduates would seek employment with the city, or the county -- and often find jobs they desired. Times have obviously changed since then.
Lean, quasi-recession times call for tougher standards in regard to staffing. Federal, state, and local governments should all be scaling back right now in lockstep with private businesses. The plentiful, ever-flowing faucet of tax dollars enjoyed by governments at all levels is drying up right now.
In Florida, the gravy train funded by real-estate transactions has slowed to a trickle. It will return to its heyday -- and be bountiful again. But economies, local and national, tend to run in cycles, both up and down.
And government -- at any levels -- should not be expanding while the private sector shrinks.
(Steve Nicklas is a financial advisor who lives on Amelia Island. He can be reached at thenicklasteam2@msn.com or at 904-753-0236.)