Top of the State and National agenda, jobs or spending?

And, as budget cutting, and not job creation is clearly at the top of the national agenda, what will the job picture look like when all the budgets are reduced to a bare minimum, and all the 'excess' employees let go.  It appears that all the talk about budget cutting comes down to this, moving the money spent from one place to another.  From the state personnel budget to the state welfare budget.