* The Financial Times (among others) reports that President Obama’s speech tomorrow will include a proposal for increased federal aid to hard-hit state and local budgets…

According to people who have been studying the White House’s possible options, Mr Obama’s proposal is also likely to include measures that would directly boost cash-strapped states and local governments. States and municipalities this year have been forced to slash employees, including public school teachers and police, dragging down national job creation figures. Depending on its structure, an infusion of funds from the federal government could help prevent some of those lay-offs.

* US News & World Report looks at the numbers…

The August jobs report shows that the 17,000 public sector job losses last month completely wiped out the private sector’s 17,000 job gains. Since the end of the recession, government employment–including federal, state, and local jobs–has fallen by roughly 600,000. State and local governments have particularly felt the pain, according to a report released this week by the Census Bureau, which shows that there were over 200,000 fewer state and local government jobs in 2010 than in 2009. Outplacement firm Challenger, Gray, and Christmas also reported this week that, while U.S. layoffs on the whole slowed last month, public-sector layoffs accelerated, from 9,389 in July to 18,426 in August. […]

Behind those government job losses are budget cuts, particularly from states and local governments, many of which have lost revenues as lower incomes and lower property values lead to lower tax income. Those budget cuts mean fewer government contracts, which also leads to pain in the private sector. The winding down of the stimulus package also contributed to these losses, as federal assistance to state governments for things like extra Medicaid funding has disappeared, leaving many states with substantial budget gaps.

* But the National Journal says Obama’s idea is a no-go…

Aid to state and local governments would by far be the most stimulative action, but since that would lead directly to an expansion of government payrolls, it doesn’t have a prayer of passing the House.

…Adding… Roundup…

* Regional superintendents say jobs are necessary

* Illinois Perry, Romney backers clash on Republican primary vote

* IL GOP State Central Committee Meeting: Sound and Fury Signifying No Changes

* Illinois GOP rejects delegate selection plan in victory for Romney

* Illinois Orders Plant in Latino Neighborhood to Curb Emissions

* Will Co. sales tax consultant fights RTA, Chicago suits

* MetroLINK transit facility going up in Rock Island

* Preckwinkle seeks to loosen Cook County purchasing rules