LEXINGTON, Ky.--Although the economic collapse that was the Great Recession may be over, state leaders know it's not all blue skies ahead for the economy.
Jennifer Burnett, program manager for fiscal and economic policy at The Council of State Governments, said while the economy is steadily gaining jobs, wages are not increasing.
"The recovery has really reached a turning point, and state leaders are starting to think about the future, instead of just digging out of a hole," Burnett said. "They are going to be looking for ways to not just create one more job and bring the unemployment rate down one more point, but how to create high-paying jobs--jobs that have a future."
According to the U.S. Conference of Mayors, the average annual wage for jobs lost in the recession was $61,637, but the average wage for the jobs added through the second quarter of 2014 was just $47,171. Increasing wages, not just the number of jobs, will be the top fiscal issue on state policymakers' minds this legislative session, Burnett said.
"So far, the recovery has seen a lot of job growth in low-income sectors while jobs in higher paying sectors that really propel the economy forward have been more elusive," she said. "Now that the crisis is over, it is time to start looking at quality instead of just quantity when it comes to job growth."
The Council of State Governments this week released its annual listing of top 5 issues legislators will face this year in education, energy and the environment, federal affairs, fiscal and economic development, health, international affairs, interstate compacts, transportation and workforce development.
Burnett said other issues facing legislators this year include preparing for the next fiscal crisis, dealing with a likely decrease in federal funding coming to the states, paying for Medicaid costs, and covering public pensions and retiree health care costs.
Even though the economy is in much better shape than it was five years ago, states still have some serious issues to address, Burnett said.
"Balancing a healthy recovery with long-term investment and fiscal planning is like walking a tightrope," she said. "How do you restore funding in critical areas like education and infrastructure that will shore up economic growth today while making sure you have the resources to weather the next storm that comes along?"
