Governor Arnold Schwarzenegger's eagerly anticipated 2010-2011 budget proposal has left State workers on edge as 2010 begins. State worker furloughs, which took full effect in 2009, have had a devastating impact on many families in California, not just those working for the state. If the 2010-2011 budget continues the furloughs, or institutes layoffs, the impacts will be even farther reaching.
Furlough Rulings
In September 2009, a San Francisco Superior Court judge ruled that the furloughs were unlawful as applied to employees of the State Compensation Insurance Fund (SCIF). His ruling ended furloughs for more than 6,200 SCIF employees represented by Local 1000.
The end of 2009 was marked by an Alameda Superior Court ruling in favor of three unions, that the governor’s “emergency” executive orders, designed to help save the State money, were illegal. Judge Frank Roesch said Schwarzenegger's use of furloughs was "an abuse of discretion" and that he had ignored legal restrictions on furloughs, interfered with operations of state agencies and achieved questionable savings.
While the judge ordered the governor to "cease and desist" the furlough of employees whose salaries are paid from special funds, the ultimate implementation of the decision remains uncertain. An official court decision is expected by mid to late January, and the Governor is likely to appeal these rulings. An appeal process could leave the furlough matter tied up in courts well into 2010. So what does this all mean for California State workers in 2010?
Extension of Furloughs and Layoffs
An extended period of furloughs for state workers would mean a continued beating of California's economy, and a sluggish start to the recovery that was hoped for in 2010. An extension of the furloughs or an increase to 4 furlough days per month would not only increase foreclosures as families lose their homes, it will make families who rent choose between a roof over their head and being able to afford groceries and health care premiums. Layoffs after an extended period of furloughs would be a harsh both emotionally and financially.
The Nation's Furlough Situation for 2010
According to Stateline's June 2009 story, California is one of 21 states whose employees are dealing with furloughs. Even if the economy begins recovery in 2010, state budgets will likely not stabilize until years later. Here are some of the top stories from around the nation:
- West Virginia orders midyear budget cuts to avoid furloughs
- Buzz kill at Utah Department of Natural Resources holiday party
What Can California Expect in 2010?
If the state of the State address on January 6, 2010 was any indication, the following general topics will be front and center in the 2010-11 Budget:
- Additional cuts to handle projected decline in revenues thru 2013-2014
- Investment in water resources
- Protection of education funding
- Reducing prison spending
- Pursuing equitable share of federal funding for California
- Pension reform
No doubt Governor Arnold Schwarzenegger's budget proposal for 2010-11 will have tough cuts. It remains to be seen how furloughs and layoffs will play out and how State workers will manage through the crisis.
Jule Rizzardo - Jule Rizzardo is a freelance writer, specializing in small business advertising and management skill development.
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