Monday, October 11, 2010

Schwarzenegger has structure to furlough CA workers cleared by court

The order from Governor Schwarzenegger to furlough California staff has been upheld. There have been several years of a California spending budget crisis with little support for Schwarzenegger. There are consecutive years of budget shortfalls for CA. Governor Schwarzenegger was sued to keep a further furlough of state employees from occurring. Nevertheless, the CA Supreme Judge has ruled in favor of the government.

Judge wants furlough order to remain

To conserve money, Governor Schwarzenegger made sure that California state employees had to have a furlough. Workers will not get paid for two days that they’re required to take off every month. The initial furloughs were ordered in 2008, and extended to three days in 2009. In 2009, the state furlough orders were renewed by Governor Arnold Schwarzenegger. This led the Professional Engineers in California Government to sue Schwarzenegger. The claim was that the days off were illegal. CNN reports the government won in that battle with the CA Supreme Court. Due to the furloughs, the state of CA will conserve lots of money. About $80 million a month could be saved.

Cash in CA is cut quite firm

The state of CA has had a running budget crisis for the past a number of years. As real estate values and employment plummeted, the state was left with a drastic budget deficit. CA has been getting a budget deficit each and every year. Legislators and other parties have tried stopping Schwarzenegger in anything he has tried to do. The deficit is not something that he likes or approves of. It is his only option to get the deficit to go down. Bloomberg explains the California spending budget deficit is, for this year, at $19.1 billion.

Money can’t be spent if it is not coming in

For the past two years, the state of California has been continually in a crisis. The governor and the state legislature are designed to reach an agreement over the spending budget later this month. The furloughs were supported by the legislature.

Info from

Bloomberg

bloomberg.com/news/2010-10-04/california-s-schwarzenegger-can-order-worker-furloughs-state-court-rules.html

CNN

cnn.com/2010/US/10/04/california.furloughs/



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