Are Public Employee Growth and Excessive Compensation The Cause of State Deficits?

This study looks at the state budget deficit problem and attempts to answer questions about the causes. Many states have enacted laws to limit government employee unions by arguing that growth in the number of government employees and excessive compensation of employees is the cause of the budget deficits. The results of the research on this topic are that growth in government employment per state resident has been constant, and that public employee compensation is similar to that of private employees with similar education and experience. The major cause of state budget deficits is linked to the decline in home valuations.