In California the Governor moves to lay off 10,000 state workers

As legislative leaders Tuesday moved toward a deal that could wipe out the state’s $42-billion deficit with temporary tax hikes on retail sales, cars, gasoline and millionaires, Gov. Arnold Schwarzenegger threatened to lay off as many as 10,000 state employees if a new budget is not passed this week.

State workers will begin receiving pink slips Friday, absent a fiscal agreement by then, administration officials said. The layoff process generally takes about six months for state employees due to union rules and other considerations, such as bureaucratic procedures the state must follow. The move would save the state $750 million annually if the jobs are eliminated by July 1, according to Aaron McLear, Schwarzenegger’s spokesman.

“This is not a [negotiating] tactic,” McLear said. “This is simply out of necessity. The state is running out of money. The governor has very few options at his disposal that he can unilaterally use to cut back on state spending.”

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Posted in * Economics, Politics, Economy, Labor/Labor Unions/Labor Market, Politics in General, State Government, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

One comment on “In California the Governor moves to lay off 10,000 state workers

  1. Cennydd says:

    There are many of us Californians who believe that the state’s payroll has become bloated to the point of absurdity…..and I am one of them. I applaud the governor’s action in this case, though I disagree with him on other things.