|  Back in December, I wrote that California was looking at IOUs and layoffs. Tomorrow, that day arrives. While it may be appealed, the Sacramento Superior Court ruling on Thursday directs implementation of Governor Schwarzenegger's plan to furlough 238,000 state workers two Fridays a month. This is an effective 9% pay cut for those workers who lose the days.
The mandatory time off will apply to almost all state workers except those employed in public universities, on state tax boards, in the Legislature and in other offices not under the control of the governor.
Engineers, scientists, nurses, Department of Motor Vehicles clerks, pharmacists, Caltrans maintenance workers, dietitians, psychologists, social workers, computer programmers, unemployment caseworkers, full-time state commissioners and attorneys not working for the state attorney general will all be affected.
Prison guards and park rangers will be permitted to schedule their days off without pay in a way that does not compromise public safety. California Highway Patrol officers, who have a contract specifically prohibiting furloughs, will be exempt.
It's not just people: unemployment DMV offices will be closed two Fridays a month. Even the judge isn't in love with the ruling. Marlette said his ruling is in no way meant to endorse the governor's cost-cutting strategy.
"My job is not to rule if this is the right solution but whether his action is authorized by law," he said.
It's not just state workers. If you are a Californian due a state tax refund, good luck. You'll be getting a warrant, which is an IOU which pays interest. Upshot? Sacramento on Monday intends to begin stiffing people owed tax refunds, vendors who sell goods to the state and recipients of many social services.
Up to 276 more construction projects also could be halted next week; 5,300 already have been.
That's because the state is horribly in debt, has already borrowed to the hilt and can't secure more loans -- or sell construction bonds -- until the governor and legislative leaders agree on a budget solution that can muster the necessary two-thirds legislative vote.
And when that happens -- and the state can begin corralling enough cash to resume paying creditors -- the other shoe will drop with a loud thud: Government services will fall precipitously and taxes will rise.
Certainly, a lot of this has to do with the current economy crumbling around us. But there is a certain payback here. |
