Tuesday, February 17, 2009

Counter intuitive!

As many of us already know, California State is in deep red. At a high level, I wonder why the 8th biggest economy in the world is $41 billion in deficit. Sure we had the housing bubble, reduced corporation tax due to lesser profits.... but does that all add up to $41 billion. I am curious to know the reason for the shortfall. I quickly googled it but have not yet been able to find any analysis on the issue. So, I turned to the source of information:

There is a lot of information and I will be analyzing it in coming days but for starters lets look at the sheet that details of the distribution of California State employees for different functions.

Number of "Executives" is proposed to increase from 14,303 to 14,787 from 2007 to 2009 (a 3.3% increase).

Number of "Resources" (a very vague term) is proposed to increase from 14,509 to 15,616 (a 7.6% increase).

During the same time the number of K-12 teachers is proposed to decrease from 2903 to 2848 (a 1.8% decrease).

Now, when the state is going through a financial crisis, I am wondering why we are creating more "Executive" level positions. Moreover, I am curious to understand what functions "Resourcing" covers. Decreasing the number of teachers, quite unfortunately, seems to be the easiest thing to do but I wonder if anyone considers the long-term impact of such decisions.

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