Cuts, cuts and…(ugh) more cuts

The state’s Office of Budget and Management Director Pari Sabety met with the Senate Finance Committee yesterday and painted a grim picture of the state, national and global economies: The nation is sinking in debt, state’s are racking up record unemployment and now the three major auto industries need help.

In testimony, Sabety indicated that there is now a good likelihood of a third round of state budget cuts. The additional cuts could be announced soon, especially if “Black Friday” revenues and those from other retailers come up short this holiday season, as many expect they will. Sales tax revenues are the lowest they’ve been since 2001.

According to Sabety, key analysts say this recession will be deeper and longer than any downturn in the 80s.

During questioning, Sabety indicated she wanted all stakeholders to share the pain in any further cuts and that since Jan. 2008, the state has lost approximately 3,000 total employees from either layoffs, attrition or retirement. However, when asked if there was anything "off the table" in terms of cuts she said the administration is not ruling anything out.