Virgil
02-10-2009, 04:56 PM
http://www.sacbee.com/topstories/story/1614250.html
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Published: Tuesday, Feb. 10, 2009
Gov. Arnold Schwarzenegger will send layoff warnings to at least 20,000 state workers Friday unless he reaches a budget agreement with legislative leaders that precludes the need for such cuts, his office announced Tuesday.
The Republican governor intends to eliminate 10,000 full-time positions from the state's general fund, either by job cuts, attrition or transfer to positions funded by special revenue streams, according to Schwarzenegger spokesman Aaron McLear. The layoff notices would go to 20 percent of the least senior workers in each department, initiating a process to eliminate jobs by July 1.
The state would save an estimated $750 million in the next fiscal year by eliminating 10,000 jobs, according to McLear, five times the amount the governor proposed saving in his January budget. Schwarzenegger is also seeking to save roughly $75 million by eliminating two holidays and overtime pay on other state holidays. Schwarzenegger already has imposed twice monthly furloughs on state workers to save an estimated $1.3 billion over 17 months.
Schwarzenegger proposed only $150 million in layoffs in his January budget. McLear said the governor now believes he must unilaterally take additional steps to save money because the state loses savings each day the budget is late beyond Feb. 1.
"Because we don't have a budget, and we're into February, he needs to look at ways in which he can unilaterally save the state money, cut back on government spending, and this is one of the few options that he has," McLear said.
Workers who receive layoff notices will not necessarily lose their jobs. Those workers can retain their jobs for 120 days upon receiving a so-called "surplus" notice. But they will be subject to layoff, demotion or transfer thereafter. The governor gave an informal warning to workers in a December letter that they were at risk.
The governor also could rescind the layoff notices if he and lawmakers reach a compromise after Friday that saves $750 million through other means, McLear said. Schwarzenegger plans to issue notices to twice as many workers who will be cut because some will receive exemptions or cannot legally be laid off.
Jason Dickerson, a budget analyst at the nonpartisan Legislative Analyst's Office, said the state has never laid off 10,000 workers before.
"It might be possible to lay off 1,000 to 2,000 people, but laying off 10,000 or more employees would be next to impossible without gutting core services," Dickerson said. "So I think it is next to impossible that layoffs could reach 10,000 unless the budget impasse drags on for many more months."
He said that to reach 10,000 layoffs, for instance, the state would have to cut jobs in the Department of Corrections and Rehabilitation. But doing so would likely run afoul of legal agreements the state is under related to overcrowding and prison medical care.
Schwarzenegger and lawmakers continued to negotiate Tuesday on a budget deal to bridge an estimated $40 billion shortfall through June 2010. They are working on a general plan that includes a balance of taxes and cuts, as well as a cap on future state spending and rollbacks in environmental and labor regulations. But they continue to disagree over which combination of changes to impose.
Senate President Pro Tem Darrell Steinberg, D-Sacramento, said he remains committed to having a vote sometime this week.
"I don't want to make any sort of prediction," Steinberg said. "I just know this: that successfully solving the budget deficit will go a long way toward resolving the issues related to state employees, will begin resolving a number of the issues relating to construction and private-sector employment."
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Published: Tuesday, Feb. 10, 2009
Gov. Arnold Schwarzenegger will send layoff warnings to at least 20,000 state workers Friday unless he reaches a budget agreement with legislative leaders that precludes the need for such cuts, his office announced Tuesday.
The Republican governor intends to eliminate 10,000 full-time positions from the state's general fund, either by job cuts, attrition or transfer to positions funded by special revenue streams, according to Schwarzenegger spokesman Aaron McLear. The layoff notices would go to 20 percent of the least senior workers in each department, initiating a process to eliminate jobs by July 1.
The state would save an estimated $750 million in the next fiscal year by eliminating 10,000 jobs, according to McLear, five times the amount the governor proposed saving in his January budget. Schwarzenegger is also seeking to save roughly $75 million by eliminating two holidays and overtime pay on other state holidays. Schwarzenegger already has imposed twice monthly furloughs on state workers to save an estimated $1.3 billion over 17 months.
Schwarzenegger proposed only $150 million in layoffs in his January budget. McLear said the governor now believes he must unilaterally take additional steps to save money because the state loses savings each day the budget is late beyond Feb. 1.
"Because we don't have a budget, and we're into February, he needs to look at ways in which he can unilaterally save the state money, cut back on government spending, and this is one of the few options that he has," McLear said.
Workers who receive layoff notices will not necessarily lose their jobs. Those workers can retain their jobs for 120 days upon receiving a so-called "surplus" notice. But they will be subject to layoff, demotion or transfer thereafter. The governor gave an informal warning to workers in a December letter that they were at risk.
The governor also could rescind the layoff notices if he and lawmakers reach a compromise after Friday that saves $750 million through other means, McLear said. Schwarzenegger plans to issue notices to twice as many workers who will be cut because some will receive exemptions or cannot legally be laid off.
Jason Dickerson, a budget analyst at the nonpartisan Legislative Analyst's Office, said the state has never laid off 10,000 workers before.
"It might be possible to lay off 1,000 to 2,000 people, but laying off 10,000 or more employees would be next to impossible without gutting core services," Dickerson said. "So I think it is next to impossible that layoffs could reach 10,000 unless the budget impasse drags on for many more months."
He said that to reach 10,000 layoffs, for instance, the state would have to cut jobs in the Department of Corrections and Rehabilitation. But doing so would likely run afoul of legal agreements the state is under related to overcrowding and prison medical care.
Schwarzenegger and lawmakers continued to negotiate Tuesday on a budget deal to bridge an estimated $40 billion shortfall through June 2010. They are working on a general plan that includes a balance of taxes and cuts, as well as a cap on future state spending and rollbacks in environmental and labor regulations. But they continue to disagree over which combination of changes to impose.
Senate President Pro Tem Darrell Steinberg, D-Sacramento, said he remains committed to having a vote sometime this week.
"I don't want to make any sort of prediction," Steinberg said. "I just know this: that successfully solving the budget deficit will go a long way toward resolving the issues related to state employees, will begin resolving a number of the issues relating to construction and private-sector employment."