Why Did States and Cities Reduce Employment as a Result

Why did states and cities reduce employment as a result of the recession of 2009.

A) States and cities are inefficient in providing services and the public chose to purchase from the private sector.
B) Revenues of states and cities declined and they are not permitted to run deficits
C) People voluntarily left state and city employment because of the generosity of programs to aid the unemployed.
D) None of the above