Del. Governor whacks workers in wallet

    To save the state tens of millions of dollars, Delaware Gov. Jack Markell has proposed an 8 percent across the board pay cut for state employees. Some unhappy state workers have said a cut in pay will have them spending less, and it could hurt the overall state economy. But some places may already be feeling that particular pinch.

    To save the state tens of millions of dollars, Delaware Gov. Jack Markell has proposed an 8 percent across the board pay cut for state employees.

    Listen:
    [audio: reports20090413economy.mp3]

    Some unhappy state workers have said a cut in pay will have them spending less, and it could hurt the overall state economy. But some places may already be feeling that particular pinch. Apparently just the threat of a paycut has had an immediate effect on Downtown Dover. That’s because the restaurants on Loockerman Street get a huge chunk of their business from the thousands of state workers who work just a block or two away.

    Here’s restaurant owner Jeffrey Medgebow.

    Medgebow: I’ve just noticed the people who used to eat out 3 or 4 days a week are probably eating out 2 or three days a week.

    Other restaurants say they’ve had to cut prices and get more creative with marketing.

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