Local and State Governments, Normally Job Creators, are Weighing on the National Economy

State Governments
State Governments

By PAUL WISEMAN

WASHINGTON (AP) -- In a healthy economic recovery, states and localities start hiring, expand services and help fuel the nation's growth.

Then there's the 2011 recovery.

The U.S. economy is moving ahead, however fitfully. Yet state and local governments are still stuck in recession. Short of cash, they cut 30,000 jobs in May, the seventh straight month they've shed workers. Rather than add to U.S. economic growth, they're subtracting from it.