More Window Cleaning Jobs To Go

GLOOMY OUTLOOK, NZ: No amount of window cleaning will brighten the vision of the economy in the near future. One in three New Zealand employers plans to cut staff numbers by March as business confidence tumbles in the nation's worst business survey for more than a decade. The New Zealand Institute of Economic Research's quarterly survey of business opinion has revealed the worst figures in years, with economists describing the results as "absolutely dire" and "the very worst of times". The shocking sentiment indicates a shift to higher unemployment, declining profitability and the worst drop in business activity since 1970. However, the horror news is likely to stop inflation boosting the case for a significant interest rate cut by the Reserve Bank on January 29. The lower interest rates will be chilling comfort to those without jobs or slashed pay packets. The survey shows 32 per cent of employers plan to cut their workforce in the next three months. Twenty per cent of businesses said they had already cut staff numbers since September. The service sector was no better, with a net 47% expecting a decline in profitability.

State budget deficit could hit $1 billion: HARTFORD -- Minority Republicans predicted Monday the deficit in the current budget may rise to a billion dollars, more than triple the shortfall the General Assembly will deal with Wednesday. The Republicans said unless lawmakers agree to make larger spending cuts during Wednesday's special session, it's likely the Democratic majority will either raise taxes or raid the $1.4 billion emergency budget reserves going into the two-year budget cycle that starts July 1. "Connecticut needs real solutions that don't dismantle the public services on which Connecticut's residents and businesses rely more than ever," the unions said in a statement. "Driving down the standard of living for middle-class families and cutting core public services during an economic downturn is a recipe for continued disaster."
Meanwhile on Monday, Gov. M. Jodi Rell, fearing continued erosion of tax revenues, ordered new cost-cutting tactics including the canceling of nonessential state contracts and the phasing out of deputy commissioner positions. As examples, she said items such as magazine subscriptions and new athletic equipment would be deferred and landscaping and window-washing schedules would be pushed back.

HARTFORD (AP) -- Gov. M. Jodi Rell says she plans to phase out some deputy commissioner positions as part of a plan to cut spending in the midst of a deficit crisis. Rell has ordered a review of all deputy commissioners and other executive appointments, and will make a plan to reduce those positions once she gets the information. Rell also ordered a review of existing state contracts with outside vendors, and says she'll terminate non-essential services such as window cleaning, promotional items and exercise equipment.