Schwarzenegger orders hiring freeze, worker cuts

SACRAMENTO, Calif. — Gov. Arnold Schwarzenegger on Friday 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 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 didn't do enough to address the financial crisis.

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."

Labor 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.

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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, D-Sacramento, 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.

Under the governor's special session declaration, lawmakers have 45 days to send the governor bills that address the budget crisis. If they fail to do so, the Legislature may not act on other bills.

The governor had sought what he said was assistance for homeowners facing foreclosure, broad authority to relax environmental regulation on public works projects and more toll roads. Democrats allowed only partial waivers for a limited number of road projects and for certain state properties up for sale.

Additionally, 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.

Environmental advocates also questioned why the governor would toss aside the only deficit-cutting legislation to reach his desk since he declared a fiscal emergency on Nov. 5. Paul Mason, deputy director of the Sierra Club in California, suggested that by demanding environmental exemptions, the governor was betraying his public image as a crusader against global warming.

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Associated Press Writers Samantha Young and Steve Lawrence contributed to this report from Sacramento and Garance Burke contributed from Fresno.

Comments

[rockyb26]

Mexico's looking really good right about now.

[MNmommy]

They need that wall now, to keep us out!

[barriosbabe]

Good one.

[liseworks]

heh !!

[rockyb26]

so true. i already know tons of people who drive there to get prescription meds and medical treatment. it will only increase as the economy worsens.

[dolphy]

I saw that in the news. Some are going back because they can't find a job, even at the local hardware or U-Haul.

[PallinAround]

I think Canada, instead. I'm willing to accept a colder climate for a lower crime rate.

[rockyersocksoff]

I tink dis iz fintastic foa Cauleefornia.

Und mein vife iz now so hoppy mit de Obama dot I can now get bock into da bedrooms.

[Symbiot]

...that was a good interpretation of a bad impersonation.. well done! ;-)

[Sarahjan]

California Republic is rich and smart state. Mr. Schwarzenegger where the state's money went?

Second also taking unpaid leave as well?

This does not look good.

[Samalabear]

We would like to know this in New York, too.

[lissak]

Another nail in the coffin of the middle class. Soon, we are going to be a society of serfs and feudal lords.

[LolaP]

ha! SURE..

[barriosbabe]

I think Arnie WANTS the backlash. That wil put pressure on the other doinks in Sacred Tomato to solve the budget crisis.

[bigmadd]

What is Arnold giving up ?

[MsDoc]

The faith of the electorate.

[barriosbabe]

Anybody who knows California knows this: to apply is a nightmare of tests and red tape; to get help is to meet people who cannot even spell the word "document" - so how do those people get in there? There has to be some way to trim out the incompetents. I've had a lot of experience in and out of California government offices. There's always one lazy id1ot who is worthless. How do they get the job? Buddies in HR, relatives of department managers etc - I swear. Somebody would become very popular with the people if they rooted out that evil! BTW stop picking on immigrants.

[MESGAIN26]

WHY DONT ALL STATE GOVERMENTS WORK FOR FREE FOR A YEAR , WHY TAKE IT OUT ON EVERY DAY WOKERS

[who38]

Why doesn't every citizen in the state work free for a year and use the money to pay off the debt?

[Witchitalineman]

? are you saying.

[abby4ever]

In reading some earlier posts on this thread, I saw that many other states are doing hiring freezes and even pay cuts, it isn't just California. I guess this is the part where it bites people in the b.u.t.t, you can't keep the problem up in Washington forever. Our Joe Biden and our President Elect are making dire predictions as well.

What's the name of that thing that comes calling? It's like the grim reaper only it isn 't him, it isn't about death but about financial ruin.

[MsDoc]

Chickens coming home to roost.

[liseworks]

I think we all have to be prepared to "hit rock bottom", as they say in add iction / recovery terminology -

We have been a nation (& it's afflicted people beyond the US) of self-indulgents - we'll need to undo the irresponsible habits we've all been accustomed to - & live, appreciating hard work & the basics, once again -

[minimalist syntax]

Irresponsible habits like eating and having roofs over our head and seeing doctors when we have serious health problems.

[rockyb26]

you're right. i just want to know what hitting rock bottom will look like before it happens. will i be standing in line for cheese or what?

[barriosbabe]

I usually agree with you (not that you need it from me) but you know, I think that is oversimplified. An awful lot of people out there did not over-borrow and worked hard/studied/stayed loyal to their employer etc etc and now are having to pay for others. It's not right. My friend Joe has been a Calif state worker for 3 years - VERY hard working, educated, zero debt - why should he lose his job?????

[missette]

Oh, there's been no shortage of hard work. But appreciation for that work? I think not. There was a great irony in John McCain claiming, in defense of his "The economy is sound" statement, that he was talking about U.S. workers, "the most productive in the world." Unfortunately, over the past 8+ years, those workers have no longer been adequately paid for their contribution to the nation's prosperity. As Bob Herbert and Paul Krugman recently noted, while those on Wall Street who set fire to the economy prospered beyond all comprehension, virtually everyone else's income stagnated or fell. Hard workers were viewed with contempt, as having to pay them at all was viewed with derision by the masters of the universe and their minions in Congress.

[alexpaul]

its hard when you are watching the corruption of this government day in day out.....

8.5 trillion stolen already ....and we need to tighten our belts...?

i guess we really are slaves..

[levi501]

Hiring freezes and unpaid days are not unusual for goverment. In fact, it happened every year in the Air Force when we increased our lapse rate. All organizations grow and contract with normal economic swings. It's too bad when people assume government should be in a perpetual state of growth.

[MNmommy]

The *government* has been retracting for decades - swaths of the public sector are now in the private sector.

Of course, that's been the plan.

The so-called savings from private business *efficiencies* were an illusion and part of the lie that brought us here, in fact, the costs of privatization are part of what destroyed our economy. So much for efficiency.

::shrug::

[Chicago48]

The end of the middle class in America. Period.

[barriosbabe]

Dos that affect teachers?

[NotGuilty]

What teachers? The 45,000 already laid off?
Rich boy Arnold doesn't believe in teachers cause his kids can go to Harvard.
It's all about rich people, now. They don't want to pay taxes so that's that.

[MNmommy]

I think that one of his kids is in the CA University system, heh.

Maria spoke about it when she endorsed Obama - the daughter didn't get into first choice Boston College. I remember it striking me as odd at the time.

[ReasonMrSmith]

All about the rich people?

Sounds like someone is bitter about the choices they made in their life.

Sure some percentage of "the rich" inherited their money, but many of "the rich" actually earned their money the hard way: they took risks, they made good decisions, and they worked their butts off.

These people owe you nothing but the mutual gratitude that good citizens offer to one another - thanks for doing your part in keeping this country free.

The idea that you are somehow the victim because you didn't get your share of the gravy train is just backwards and unamerican.

Grow up, child.

[who38]

No, they are not contracted directly with the state. However, there are many school districts that have used this method of wage reduction in the past and many more are considering it at the present time. Start looking for child care. Think that what you will need to pay for that would be equal to the taxes required to keep your child care needs being met by a teacher? Six hours of care for 30 children at $5 an hour comes to $900 per day per class of students or $30 per day per household.

[barriosbabe]

I was worried about my friend who is a seventh grade teacher in L.A. with low seniority.

[minimalist syntax]

Educators in higher education at UC's and CSU's are state employees.

[Clem2]

The Unspoken Elephant in the Room

Of course NOTHING is said how much is spent to support *illegal* immigrants. NONE. This is a huge amount. They are here illegally, state money should not be spent on them. Period.

And yes, CA workers get huge benefits that must be cut. I'm not just talking the legislature (which should take cuts for sure), but other workers, like those who retire with 75 percent full salary and get a ton of benefits all the way along.

There was a time when state and public workers, civil servants, were paid less than they were in industry. So the fact they got larger benefits, tenure, whatever, was understandable.

Now they get paid MORE than in private industry, so the benefits, unions, tenure are NOT understandable. That makes for people you cannot get rid of even if they do a crappy job, and whose benefits are just way too generous.

[MsDoc]

Public school teachers would disagree with you ( among others, I'm sure ). Teachers generally have dismal cash salaries and the only redeeming factor is the decent benefit package which generally bases retirement pay on years of service.

And have you seen what social workers make?

[levibatgirl]

Private industry (non union) have kept wages stagnant for years.
I checked out recently what the current pay is on a particular job I had 12 and a half years ago out of curiosity. Guess how much more those workers are making now? 30 cents an hour!!

The 'Unspoken Elephant in the Room' is the right wing smear machine scapegoating the working class and unions for paying a decent living wage with benefits!!

[ReasonMrSmith]

Fact is, Clem2, the people of California elected politicos that put the immigrant-favorable policies in place.

It is ironic that many in the electorate now do without because of their decision; but after all, it was their decision.

Perhaps the electorate will be reminded, once again, that there are consequences to their decisions.

Perhaps by suffering now, as a result of their own decision to vote one way versus another, they will have learned their lessons.

The ONLY victim I can see is the man or woman who suddenly found him or herself in the position of having to move out of California in order to live in a state where his or her tax dollars is not dispersed to the men and women who come to this country illegally.

[smit9187]

The Chamber of Commerce is the biggest advocate for immigrants. Who do they represent, big business, of course.
You wrote: "Perhaps the electorate will be reminded, once again, that there are consequences to their decisions." Yes, those who voted for Bushy/Che ney and who were middle class and below, must really be seeing this now.

[kuca29]

Excuse me, Clem2, but in case you didn't know, unless you are of Native American descent, your family at some point down the tree was also an "illegal immigrant" in this country. They didn't pop into existence in America, they probably were immigrants. So unless you like insulting yourself, you should realize that it's not the illegal immigrants who are to be at fault for this economic crisis, they actually help our economy grow with cheap labor and low-paying jobs. It's government's uncontrollable spending. Maybe, just maybe, it's not the workers who make our economy grow who should suffer, it's the government itself. Why doesn't the governor take a wage cut?

[Pronto]

Good move by Arnold. The days of raising taxes to perpetuate government inefficiencies appear to be coming to an end. The next step is to cut government spending. Let's see if The Dems and The Libs have the t e s t i c u l a r fortitiude to do that. I doubt it, but let's wait and see.

[smit9187]

Wait and see the chaos that will ensue, hope you'll the first to experience the backlash.

[Pronto]

Efficiency does not cause chaos. It cures it.

[MESGAIN26]

OH YOU MEAN TAKE OUT ON THE LITTLE PEOPLE LETS SEE IF ARNOLD WOULD HAND OVER HIS MILLIONS THAT HE POCKETS , WHERE WAS HE WHEN THE REPUBLICANS RAN A MUCK

[NotGuilty]

Covering Arnold's 32% plus spending over Gray Davis' and then cutting everything has not been the answer.
Recall Arnold and pay some taxes before California disappears beneath the waves.

[who38]

Prisons and their costs are one of California's biggest expenditures. We can fire prison personnel and use early release so that there is no need for prison guards. We can repeal the Three Strikes Law as well so that more prisoners can be released. California has more people in prison, based on % of population) than any other state. If these people are released, it will be less of a drain on our taxes. Of course, it will take t e s t i c u l a r fortitude to take the trash out after dark. You choose.

[LCLiberal]

Obama could be saving our great nation with government money right now if he had taken the only sensible path after his election and demanded the resignation of Bush-Cheney, followed by an aggressive impeachment and criminal investigation of the entire regime.

http://www.sunstateactivist.org/ssablog/

[MNmommy]

::eyeroll::

stinkingblogpimp

[RobertaInCT]

:)

[confuseddemocrat]

and do you really think that the congress, reid and pelosi would have allowed that?

[MsDoc]

Riiiiiiiiiiiiiight.... So much for that irksome piece of paper we call the Constitution.

Besides, I don't think the Presidency comes with a cape and a magic wand. I kinda think we have to give the man a little time, don't you? I would prefer a reasoned Presidency than one which would inspire an ar chy.... silly me.

[Ant]

Where does the Constitution come into play here? Anyone can demand Bush and Cheney's resignation but that doesn't mean they have to comply.

[ReasonMrSmith]

There was a time when President Bush had an approval rating of 90+%.

Where were these people then?

[Pronto]

More wasteful spending. Typical Lib policy.

[MNmommy]

Typical Republican minimal syllabic response.

[NotGuilty]

Yet you neocons blow trillions on Iraq, wars and suffering and approve of everything Bush does.
Oh the irony.
If you only had a brain, you'd be more dangerous.

[Ant]

Liberal spend on things needed to improve our society; it's conservatives who wasteful spend on things.

[who38]

Blagos not going anywhere; why would Bush?

[Lionsden]

The big spender leftists are coming home to roost in California.

The immigrant population explosion (yeah, tell me that the left is concerned about the environment) created by the underclass leftists let happily let flood into their state won't be so grateful anymore. Watch for crime to soar and more good people leaving the state that leftists have ruined.

[MNmommy]

Crime isn't going to soar because of illegal immigrants, it's going to soar because of the economic condition - and it will be nationwide.

I'm not saying that we shouldn't do anything about the immigration situation - but all you are doing is scape-goating.

[Lionsden]

MNmommy,

The immigrant population that currently has the monopoly in our system come from some of the most crime ridden nations on earth with massive moral and political corruption. They bring their customs with them.

It is insane (and treasonous) to pull in the worst immigrants we can find and swamp our native-born popluation with them. Especially when there are BETTER immigrant pools to draw from who are smarter and more law abiding.

If our leaders had our best interests at heart, they would let in immigrants based on the statistics of what these immigrant groups do AFTER they get here. Will we fill the nation with immigrants to have a high crime rate, high rate of drug and alcohol use, low rate of advanced education, burden the welfare system, and often refuse to assimilate? Or will we choose from immigrant pools whose members assimilate well, do not take welfare, have high participation rates in education (including higher education), and have crime rates as low or LOWER than whites?

Our leaders (both sides) have chosen to bring in by the tens of millions, the worst immigrants they could find.

I'm sorry, but that is stupid.

[aliceinthewater]

Arnold is a Republican.

[liseworks]

Repeat : Arnold is a Republican.

[fredamae]

Arnold Is a Republican.

[rockyb26]

Arnold is a Republican