There is an alarming trend of major budget short falls in both state and local governments across the country. When the economy is good and tax revenues increase so does government spending. This all comes to a halt when the economy is bad and tax revenues drop. Now state and local governments are forced to make serious cuts in services.

How will cuts impact teachers, police, fire and other public sector employees? For some it will probably mean a wage freeze and a halt in overtime hours. The fact is many states and local governments are going to have to lay people off. Politicians will begin to ask that public sector employees start contributing more to medical and pension benefit packages to avoid layoffs.

Governor Chris Christie has already demanded pay freezes and is pushing public employees to contribute more to their pension and health benefit packages. Public employees in New Jersey contribute 1.5% of their pay to benefits and pension. Most teachers in that state contribute zero to their health plans. That is a great deal for hard working public employees, but it looks like some changes must occur.

Other states may have to follow Governor Christie’s lead and start freezing public sector pay and demanding more benefits and pension contributions. The alternative is to raise taxes on everyone.

The problem is that most private sector employees don’t have benefits and retirement plans that compare to those enjoyed by public employees. It will be a bitter pill to swallow for private employees to suffer a tax increase to support public sector benefits.

New Jersey is not the only state with a problem. California has a budget deficit that is even larger. The reality is that state treasuries are empty and cuts have to and will be made. We will all have to do with less government services. Those in government service may find that their jobs are no longer guaranteed.

Today’s reality is that everyone should consider alternative ways to supplement their income and save for retirement. America is still the greatest place on earth to live.

There has been an up surge of people starting home business to earn additional income. People are using Ebay to set up small on-line stores. Many have joined one of the hundreds of different Network Marketing Companies from Amway to the Numis Network selling everything from soap to collectible coins. There are literally thousands of people making extra money using network marketing. There are opportunities out there for those who look.

Bruce Holmes is a small business consultant and successful marketer who searches for alternative strategies for wealth creation and preservation. He has advised hundreds of individuals on how to create additional streams of income using any network marketing company. He has a createed a free training system to help new and struggling network marketers achieve success.