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State Worker Furloughs Are Back

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(Sacramento, CA)
Wednesday, July 28, 2010
Governor Schwarzenegger issued an Executive Order calling for the new round of furloughs. Starting next month, state workers will be required to take three unpaid days off until there’s a budget; it’s a pay cut of about 14 percent. Schwarzenegger spokesman Aaron McLear says it’s a necessary evil:

This is to avert a cash crisis. The Controller this week said that he’s going to start issuing IOU’s in August and the legislature after over seven weeks of failure still has not produced a budget and that’s why we have to do this.”

McLear says the furloughs will save about 150 million dollars a month.  It was just this month that the last round of furloughs ended. This time about 70-thousand workers are exempt. Those include employees that bring in revenue, such as the Franchise Tax Board – and those belonging to six unions that have reached labor deals with the Administration. Those deals include increased pension contributions. 
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