Schwarzenegger Orders Hiring Freeze, Cuts

Calif. Agencies Must Reduce Payrolls By 10% As State Faces $42 Billion Budget Deficit

(AP)  Gov. Arnold Schwarzenegger has ordered a state hiring freeze and payroll cuts to conserve cash as California struggles to deal with a $42 billion budget deficit.

The governor issued an executive order Friday that requires state agencies to reduce payroll by 10 percent, which could lead to massive layoffs. He also ordered the state's 235,000 employees to take two days off a month without pay, starting Feb. 1.

Schwarzenegger also issued an executive order calling lawmakers back into session to deal with the budget for the third time in two months. On Thursday he announced he would veto an $18 billion Democratic deficit-cutting package that he said did not do enough to address the financial crisis.

The deepening economic crisis has impacted state governments throughout the U.S. who are struggling with growing budget deficits because tax revenues are declining as the recession deepens.

In a letter to state workers, Schwarzenegger said California must take emergency steps that will require sacrifices from everyone.

"It is imperative that state government look inside itself and be part of the solution," the governor wrote. "We simply have no other choice."

Union officials said they were considering filing a lawsuit to prevent job losses.

"We definitely think we have grounds for filing an unfair labor charge," said Jim Herron Zamora, a spokesman for the Service Employees International Union, Local 1000, the largest state employee union. "Our contract doesn't allow him to do this."

Officials warn that the state will run out of cash in February unless Schwarzenegger and lawmakers can reach a deal to close the budget gap with spending cuts, revenue increases or a combination of both.

Schwarzenegger ordered all state employees to take two days off a month without pay or take a similar salary cut to achieve $1.3 billion in savings through the next fiscal year.

On top of that, the governor directed agencies that get their money from the state's largest budget account, the general fund, to achieve a 10 percent payroll savings. Officials said that could lead to an undetermined number of layoffs.

Department of Personnel Administration spokeswoman Lynelle Jolley said any workers who lose their jobs as a result of the order could seek employment at other state departments that use special state funds.

"We're hoping we can do this with the least number of layoffs possible but the goal is to address this imminent cash crisis," Jolley said.

Lawmakers adjourned for the holidays Thursday after Democrats pushed through a package of spending cuts and tax increases using a creative maneuver to bypass Republican opposition.

Schwarzenegger's decision to veto the package left Democratic leaders scrambling to save their plan. They argued that it met some of his demands for speeding up public works projects and selling surplus state property.

Assembly Speaker Karen Bass, D-Los Angeles, said it was "mind-boggling" that the governor would throw away a package that begins tackling the state's fiscal problems because it didn't contain exactly what he wanted.

"It's like a child telling Santa if you don't bring every single item on the list, then stay out of my chimney," Bass said. "I am hoping that the governor over these next few days will really reconsider saying he will veto the budget."

Bass and Senate President Pro Tem Darrell Steinberg said they would remain at the Capitol to negotiate with the governor or his staff, but would not call the other 118 lawmakers back until a deal could be reached.

Schwarzenegger requested deeper cuts than Democrats were willing to offer, such as reductions in welfare and senior assistance programs, greater flexibility to reduce school spending, and the elimination of two of 14 state employee holidays.

[frankinaz]

"Frankinaz easy now frankinazi boy....."
At least I don''t stoop to your level and call people names. If you think people are wrong, then them tell them why you think they are wrong.
By the way, how do you know I''m a Nazi? You have no
idea.

[mrmeatspin]

That''''s if they even get to have a home. By the time Ahnold SchwarzenWaWa gets done with everyone, they''''ll be eating canned catfood in the streets.


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Posted by rudy6543 at 04:31 PM : Dec 21, 2008
+ report abuse


********
eating cat food?? get teh fu 9ck out of here..we are talking about a state where EVEN THIER DOGS AND CATS are obese..

whine whine whine whine..

[misogynist10]

I''m confused about two things. I thought Arnold knew everything and was right about everything. I also thought that we had all agreed to pretend that the White Flight out of California and the nonviolent invasion by Mexico is not real.

[payasyougo]

"...than dare consider letting the uber rich pay their damm fair share of taxes."
----
Translation - letting the rich pay YOUR fair share.

Feel free to define "fair share" anytime.

As long as you preach making someone else, anyone else but you, pay more in taxes to solve the revenue problems of our out of control, fiscally irresponsible government, you are part of the problem.

[joethedumber]

"California has been plagued with fire''''s, drought,eathquakes,financial problems.ect like non other for years now,California is also home to the most liberal, anti bible, lifestyles in the U.S."
God punishes people based on state lines? all states face these problems. If this is your god,who collectively punishes all, I rather be on the devils side. He seems to have more compassion according to the Taliban of the U.S!

[jankebenz]

California has been plagued with fire''s, drought,eathquakes,financial problems.ect like non other for years now,California is also home to the most liberal, anti bible, lifestyles in the U.S. ,Coincidence?

[rudy6543]

Well at least the Californians can take solace in the successful passing of Proposition 8 as they huddle in their freezing houses eating canned cat food and burning their furniture to keep warm.

Posted by blancadebree at 04:15 PM

That''s if they even get to have a home. By the time Ahnold SchwarzenWaWa gets done with everyone, they''ll be eating canned catfood in the streets.

[blancadebree]

Well at least the Californians can take solace in the successful passing of Proposition 8 as they huddle in their freezing houses eating canned cat food and burning their furniture to keep warm.

http://blancadebree.com

[p1tey1]

Instead of making the wealthy pay their fair share, Arnold chooses to balance the budget on the backs of the working class and the poor. What a novel idea. Another reason why the Republican party is dying.

[rudy6543]

And Californians are the dumbest of them all!

Electing this Dummkopf to their highest office!




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Posted by jerr11 at 12:29 PM

So true. Go figure. I guess Kahleeforniers just want a celebry holding that office, without regards to the low IQ or neanderthal conduct of this pig-dog. The man came into the office with the reputation of grabbing women''s breasts. No other politician would have got away with it.