TALLAHASSEE, Fla. - Last month's national job figures show 17,000 jobs were created by private businesses, but they were offset by 17,000 public employee lay-offs. Chad Stone, chief economist with the Center on Budget and Policy Priorities, says the trend of state and local governments cutting back mostly hits public education. He says a big part of why the economy is back at risk is teacher layoffs as federal stimulus money runs out.

"We've seen increasing losses in jobs at the state and local government level, even as overall job creation has turned positive and the private sector is creating jobs."

Florida has an unemployment rate of 1.7 percent above the national average, according to the Bureau of Labor Statistics.

Republicans in Congress have said cutting the deficit would spark job growth, but Stone says the opposite has happened. He calls it textbook economics: Government cuts make a recession worse.

"The argument for immediate sharp cuts in government spending, as a means to boost the economy, doesn't really square. It translates into less demand in the economy, less spending and fewer jobs."

According to the Economic Policy Institute (EPI), companies have profits nearly one-third higher than they were before the recession started. Lawrence Mishel, EPI president, says the problem is not that companies don't have enough money to start hiring.

"Companies have plenty of profits they could reinvest; they have plenty of cash on hand. But they are not going to invest unless they have customers - consumers being able to spend."

He says the government has to stimulate demand because consumers cannot.

"Consumers are not going to be fueling a lot of consumption growth because they are beleaguered by heavy debt, by the loss of wealth from the financial crisis and by high unemployment. That's why the government has to step in."



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May is Community Action Month, and local agencies helping low-income families hope Congress signs off on a plan to bolster and modernize their federal support.

Community Action Agencies help carry out services such as job training and energy assistance. The House recently approved a ten-year reauthorization of the Community Services Block Grant (CSBG) program. Among the changes is a proposed permanent increase in income eligibility for those served by local programs.

Annie Shapiro, advocacy director for the Minnesota Community Action Partnership, said it is especially timely for families struggling with inflation and making just enough money to lose out on aid.

"Maybe they add an extra shift at work, and they start making more," Shapiro explained. "But in reality, their actual spending power is either not changed because they lost a lot of those benefits or is even less than what it was before."

The reauthorization also would increase annual funding to $1 billion. Shapiro pointed out it would give agencies more flexibility to tackle areas such as housing aid, in light of skyrocketing costs for rent. While the plan has bipartisan support, some House Republicans questioned the idea of expanding the scope of the program without knowing its effectiveness on a broader level.

Shapiro countered giving individual agencies a blanket assessment is impractical, because they each respond differently to the needs in their service area.

"For examples from Minnesota, some of our agencies use their CSBG funds to help fund their food shelves," Shapiro noted. "Food shelves get some funding, but are often not funded by other sources. "

Emily Bombich, director of planning for the Arrowhead Economic Opportunity Agency, said part of their funding has gone to efforts to provide shoes and boots to community members in need. She argued an overwhelming response for the items leads them to believe they could help others with additional support from Congress.

"If we were able to give them this gift where they don't have to buy their kids shoes, then maybe they can stretch their money farther," Bombich suggested.

Supporters said the grant program has not seen a reauthorization like this in nearly two decades, and are hoping bipartisan support will carry over into the Senate.

An initiative that would repeal Washington's capital-gains tax on the state's richest residents is struggling to gain traction.

Initiative No. 1929 would eliminate a 7% tax on stocks, bonds and other assets worth more than $250,000, which lawmakers approved in the 2021 session.

The tax is projected to bring in $415 million dollars for child care and education if it goes into effect in 2023.

Aaron Ostrom, executive director of the progressive organization Fuse Washington, said it would only be levied on a small number of people.

"These are people who own yachts and are looking to buy a second yacht," said Ostrom. "This is not just rich people, this is the ultra-wealthy who are looking to further rig a system that's already rigged in their favor at the expense of child care and early childhood education."

Supporters of I-1929 argue that the tax passed by the state Legislature last year is an income tax, which is unconstitutional in Washington state. A judge agreed in March and overturned the measure lawmakers passed last year.

Attorney General Bob Ferguson is appealing that decision to the Washington Supreme Court.

Organizers of I-1929 have until July 8 to collect about 325,000 signatures. Ostrom says they are far behind and have not even reached $1 million in donations for the campaign.

"The longer you wait, the more expensive it gets," said Ostrom. "So they would probably have to pay over $10 million to get on the ballot at this point, and they're not raising funds that are anywhere near that neighborhood and they're not showing any signs of actually starting to move into signature gathering."

Ostrom disagreed that the capital gains tax passed by lawmakers qualifies as an income tax.

"It's a tax on extraordinary capital gains for a tiny number of ultra-wealthy people," said Ostrom. "And Wall Street speculation is not the same thing as earning income."

Gov. Tom Wolf, lawmakers and community leaders are calling on the General Assembly to pass legislation that would send checks of up to $2,000 to millions of Pennsylvanians.

Earlier this year, Wolf unveiled a $1.7 billion proposal aimed at helping communities recover from the pandemic through American Rescue Plan dollars.

Part of that plan includes the $500 million Pennsylvania Opportunity Program, which would provide direct payments for households with an income of $80,000 or less.

Wolf said with inflation climbing, more Pennsylvanians are experiencing financial insecurity.

"The problem is that far too many people live paycheck to paycheck," said Wolf. "And even now, with a small increase in living expenses - even if that's all people were facing with the inflation, that can have devastating consequences. Pennsylvanians deserve better and there are ways we can help."

Pennsylvania has $2.2 billion unused American Rescue Plan dollars that must be used by the end of 2024.

Democratic leaders in the state Senate and House have introduced legislation to support the Opportunity Program. Both were referred to the respective chamber's Finance Committee last month.

Wolf and legislative leaders also are continuing their calls to increase the state minimum wage, which is currently $7.25 per hour and has not had an increase since 2009.

State Rep. Patty Kim - D-Dauphin - has introduced a bill that would raise the minimum wage to $12 per hour by July and would reach $15 by 2028.

"If we learned anything from this pandemic, we need to go back to the basics," said Kim. "We need safe, affordable housing, we need good schools, we need a living wage, we need to value our workers and we need each other."

The Massachusetts Institute of Technology's Living Wage calculator shows that today, a single adult in Pennsylvania needs to earn nearly $17 per hour to support themselves - while a single adult with one child needs nearly $33 per hour to support their family.