Schwarzenegger cleared to furlough California workers
Governor Arnold Schwarzenegger has been cleared to furlough California state workers. The governor has had little help in easing a California budget crisis for years. The state of California has had chronic budget shortfalls for the past several years. Schwarzenegger had to resort to a furlough of state workers, but was sued to keep him from doing so. The California Supreme Court has upheld his power to enact a state furlough.
Court upholds furlough order
Governor Schwarzenegger was forced to furlough California state employees in order to save money. The workers would work two fewer days per month, without pay. The initial furloughs were ordered in 2008, and extended to three days in 2009. When the state furlough orders were renewed in 2009, Governor Arnold Schwarzenegger was sued by the Professional Engineers in California Government. The claim was that the days off were illegal. The California Supreme Court, according CNN, ruled in favor of the government. The furloughs will save the state of California $80 million per month.
Golden state running out of gold
The state of California has had a running budget crisis for the past several years. As real estate values and employment plummeted, the state was left with a drastic budget deficit. A California budget deficit has been an annual fixture. Governor Schwarzenegger has been opposed at every turn by legislators and other parties. He has maintained that he is not in favor of the furloughs, but is forced to resort to a state furlough of workers in order to reduce the deficit. The California budget deficit stands at $19.1 billion for this year, according to Bloomberg.
Less revenue equals less to spend
The state of California has been in perpetual crisis mode for the past two years. The governor and the state legislature are supposed to reach an agreement over the budget later this month.The legislature was in favor of the furloughs.