Subsidy cuts fill jobless rolls with former school employees

From the PITTSBURGH TRIBUNE-REVIEW:

Pennsylvania public school employees are hitting the unemployment line in unprecedented numbers this summer.

Nearly 4,000 teachers and about 1,700 school support workers across Pennsylvania received furloughs recently in the wake of a $900 million reduction in state and federal school subsidies, according to spokesmen for The Pennsylvania State Education Association and the American Federation of Teachers affiliates in Pittsburgh and Philadelphia…

Geoffrey Moomaw is president of Interstate Tax Service, a company that administers unemployment compensation for several hundred Pennsylvania school districts. He said he has advised his clients that they will have to pay out about the maximum $14,898 in unemployment compensation costs for every furloughed employee who was earning $57,000 or more…

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EDITOR: Not only do our children suffer, but the taxpayers have to pay unemployment insurance, the laid off workers no longer are paying taxes on their regular earnings, and, the main cause of the severe recession, the  lack of consumer purchasing power is made worse.   Deficits are not closed by layoffs but rather by getting people back to work.  Lose your job?  See how much money you can bank by scrimping on expenses!  What you  need is a job.

The Clinton years proved that full employment results in surpluses.  We are again  facing the economic reversals of 1937 due to a restrictive fiscal policy.

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