Most states and localities are now facing very difficult budget decisions. Not free to borrow unlimited amounts of money like the federal government, these states and localities must cut expenditures any way that they can.
Laying off employees is always a cruel, even if unintentionally cruel, outcome. One way of avoiding these layoffs is to have an across the board pay and benefit cut that applies to everyone. If there is a budget shortfall, then cut all pay by X percent across the board. Then folks can keep their jobs. Those that quit over such an action should quit and good riddance.
In the private sector you often see across the board pay cuts to preserve jobs. The same should be done in the public sector.
In education, where teachers are being layed off, the school boards should impose across the board pay cuts of a given percentage for all teachers. These pay cuts would elminate the need for teacher layoffs. Let those who wish to quit, quit. Many of the remaining teachers will be happy to have a job with good benefits, while many of their neighbors are out looking for work.