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Austerity
measures, though unpopular and not discussed by government officials and media
pundits, are in full effect across a broad spectrum of services and
industries.
In
many parts of the country local governments are being forced to layoff or cut
the salaries of thousands of emergency personnel. Education spending cuts
across debt behemoths like California, Illionois and Michigan are forcing
elementary and high school classrooms to capacities exceeding thirty or forty
students at a time and removing subjects like art, music and physical
education from school schedules. Towns and cities all over America are
declaring bankruptcy on an almost weekly basis. Government sponsored health
care systems are feeling the pressure with major cuts in access to key prescription medications quickly
becoming the norm.
Just
two years ago the idea that austerity cuts would hit America like an 8-pound sledgehammer
was inconceivable.
Today
it’s become quite apparent, especially for those just entering college
or returning to higher education in an effort to learn new skills for a dying
or dead jobs market.
In
addition to nearly $1 billion in state funding cuts for college students, the
progressive State of California and others are now facing massive jobs cuts
and salary reductions across the board.
This
is only going to get worse – it can be no other way:
More
than 470,000 community college students are beginning the fall semester on
waiting lists, unable to get into the courses they need, according to a
survey of California’s two-year colleges that captures a system
struggling amid severe budget cuts.
…
California’s
community college system, the nation’s largest, has suffered about
$809 million in state funding cuts since 2008. It faces another $338-million
hit midyear if voters reject a tax measure on the November ballot
supported by Gov. Jerry Brown.
…
Although
they hope for the best, many campuses are planning for the worst. They
are taking steps, for example, to negotiate union contracts that include
reductions in compensation and employee working hours pending further
spending cuts.
“There
is no question that the system is shrinking in terms of the number of
students we’re serving but not shrinking in terms of demand,”
Chancellor Jack Scott said in an interview Tuesday. “The real problem
is we don’t have the financial resources to offer the
courses that we could fill. In the long run, it’s going to be hurtful
to the economy. These are the individuals who are going to make up the future
workforce of California.”
These
students also tend to be among the neediest: They typically require remedial
classes, financial aid, tutoring and counseling. And many are juggling school
with jobs.
Yet
70% of colleges in the survey report having reduced hours for such support
services, and 87% have reduced staff. In addition,
82% said they planned to offer no winter session this year.
…
The
colleges predicted a grim year if further cuts are required in
January. Administrators said they would need to further reduce
class offerings, lay off full-time faculty, postpone building and classroom
maintenance, and borrow to manage cash-flow needs.
Already,
budget cuts have had a deep effect. Overall enrollment dropped about 17%,
from about 2.9 million in the 2008-09 academic year to 2.4 million in
2011-12, and officials have estimated a further decline this year. The number
of class sections decreased 24% from 522,727 in 2008-09 to 399,540 in
2011-12.
Despite
their best hopes for change, it’s not a question of “if further
cuts are required,” but rather, “when” those cuts will take
place.
In
fact, those cuts are taking place now, as evidenced by the half a million
California college students sitting on the sidelines. As this college tuition bubble detonates, so too will the
thousands of jobs it supports. As we noted in the summer of 2010, we can
expect local and state governments to lay off at least 2 million
people, which will further accelerate the depressionary feedback loop.
Americans
are broke and going hungry, states have no money or credit
left to fund the deluge of services they’ve committed to over the last
three decades, and the Federal government is running unprecedented deficits
and debt.
There
is no help coming, regardless of how loud Occupy Wallstreet Protestors scream
for free education, healthcare and more jobs.
We
are seeing massive cuts – to the tune of tens of billions of dollars
– in services that have become essential to stable functioning
of the nation’s economy. In due time austerity will rear it’s
ugly head in government safety nets that include federal retirement
distributions, pensions, food and nutritional assistance and essential
medical services.
They’ll
protest when they can’t fund their college educations or homes.
They’ll scream loudly when they can’t find jobs. But when they
can’t feed their families or provide life saving medical care
they’ll riot in the streets.
The
force of the sledgehammer is starting to hit and the pain is going to be
brutal and without mercy.
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