On Thu, Dec 11, 2008 at 12:01 PM, Conyers, Dwayne <dwayne.conyers at hp.com> wrote: > Working on municipal, state, or federal projects is always a sure deal. Bzzzt. They're protected, because they can always increase taxes, borrow, and inflate (without any negative consequences, right?), but at the end of the day these things have limits and these limits *are* tied to the economy. Tax revenue falls double-time when the economy declines, because there are fewer wages to tax and fewer funds in the hands of citizens to spend (affects sales taxes). Plus property values are (rightfully) falling, which means less property tax revenue (eventually). Et cetera. My client is a government agency, and they are seeing budget cuts. Of course the first few rounds just cut the fluff and have no effect on current headcount or projects, but eventually the later rounds of budget cuts start resulting in the cancellation of projects. (As a last resort, they will cut people, if labor agreements even allow.) I am seeing increased attention from all levels on projects which promise high ROI, and anything promising medium- and low-ROI in the immediate future (even if long-term is much higher) is being dropped. One thing to note, with governments the "wave" is usually a little off-set from the rest of the economy. In other words, the decline in revenue starts later and ends later, just by the nature of from where that revenue comes. Thanks, -- Matt Warden Cincinnati, OH, USA http://mattwarden.com This email proudly and graciously contributes to entropy.