Every first and 3rd Friday, most state offices will be closed except for the ones that are mandatory to stay open (safety etc.)
Some observations as to the impact of the furlough that starts tomorrow.
We have 3000 plus employees in the building. We do have a cafeteria owned and managed by an outside entity (small business) that employs 7. Mostly full time. Most large state buildings also have cafeterias that have employees.
Twice a month
, these cafeterias will be closed. The employees will have less hours to work and will have smaller paychecks.
The trickle effect on the economy is going to be worse. Less money is going to be spent by everyone.
The standard multiplier for every one dollar earned and spent is 7 times in the economy.
It's going to get much worse before it gets better.
There are 238,000 state employees. Sounds a lot but considering we have 37 million population, it's not that bad.
For kicks, if the average pay was 5K per month a furlough represents a 10 percent pay cut = $500.00
Let's assume that the $500 would have been spent and not saved. My calculations:
$500x238,000 = $119,000,000 saved by state per month
$119,000,000 x 18 months = $2,142,000,000 (saved by state for the 18 month period)
$2,142,000,000 x 7 (multiplier) = $14,994,000,000 impact on economy.
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