Government jobs have long been considered "safe" jobs. The ones that kept the economy going during recessions, though they paid less in good times. But even they aren't unaffected. States like NY and Hawaii have forced 3 unpaid furlough days a month - equivalent to a 14% pay cut. In Hawaii's case, for two years.

The SacBee had an interview with a lawyer who had planned a career working for state. He ended up leaving for private industry, because the pay was 50% higher, and he needed to pay off his student loans. He's now working for his former union, suing the state to prevent furloughs.

Pennsylvania has no budget yet, and their state workers will receive partial payments the next couple of weeks, then not be paid at all if the budget isn't settled.

California has no budget either, and we're set to start issuing IOUs today as the state runs out of cash.

http://www.latimes.com/news/local/la-me-california-budget2-2009jul02,0,4...

"States like NY and Hawaii have forced 3 unpaid furlough days a month"

Not so in the case of New York. We haven't had any furlough days for state employees.

Sorry, I mean California, not NY.

Also in WI, at least for UW State employees. so far, 4/yr but expecting more.

OH, too. I think five furlough days per year in the new state employee contract.

In a fiat world, all the state has to do is declare "this is money to settle debts with the state", then issue said "money".