[jshaqaw]

Tax revenues which have been decimated by the crisis. Unlike the Federal government which can effectively borrow/print whatever it needs, states and municipals are limited by the real world and either have balanced budget requirements or de facto requirements imposed by the bond market/fiscal realities. The equation is simple. Tax revenues have plummeted while expenses have risen due to the costs of coping with the crisis (unemployment, medical services, etc..). Am I saying all of these tax dollars are spent with great efficiency? Of course not. But imposing unnecessary austerity in the middle of a crisis has proven time and time again to do nothing but prolong and deepen economic pain. It would be arbitrary and destructive if say US defense spending can remain immune because it has access to infinite credit while our school district and firefighters will be cut because they are state/local funded.

[giantg2]

Also, they are paying a lot of overtime in health related workers or to make up for workers who test positive and for increased cleaning crews, so not only are the hours going up but they are paying the 1.5x rate more often. Sacramento is also relatively expensive and I assume there are a high number of state employees there since it's the capital.