Employee Furloughs Are Back

California Gov. Arnold Schwarzenegger, citing the state’s inability to adopt a new budget, on Wednesday ordered three-day-per-month furloughs for employees in positions paid for out of the general fund.

Such furloughs were in place for most of the fiscal year that ended June 30.

Lawmakers are nowhere near agreeing to a budget for the current fiscal year.

The Republican governor has been trying to make the budget impasse affect state employees — presumably to give their Democratic allies in the Legislature more of a motive to negotiate.

Schwarzenegger had sought to pay most state employees at the federal minimum wage without a budget in place, only to be rebuffed by a legal challenge brought by Controller John Chiang.

The governor cited Chiang Wednesday when he declared a budget emergency and issued the executive order to implement furloughs.

“The state controller has indicated he could be forced to issue IOUs starting in August in order to avert a cash crisis,” Schwarzenegger said. “Our cash situation leaves me no choice but to once again furlough state workers until the Legislature produces a budget I can sign.”

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