California budget deficit imperils 10,000 state workers' jobs

Gov. Arnold Schwarzenegger's administration says it will issue pink slips Friday if a deal to close the nearly $42-billion gap is not reached by week's end. The cuts would save $150 million a year.

By Michael Rothfield reporting from sacramento 
12:18 PM PST, February 10, 2009

Gov. Arnold Schwarzenegger will move to lay off as many as 10,000 state workers if lawmakers fail to pass a plan to close California's nearly $42-billion deficit by the end of the week, an administration spokesman said this morning.

Schwarzenegger's press secretary, Aaron McLear, said at a media briefing that the administration would send out pink slips Friday, absent a budget deal. The layoff process generally takes about six months for state employees due to union rules and other legal considerations, and bureaucratic procedures the state must follow. The move would save the state $150 million annually if the jobs are eliminated by July 1, according to McLear.

He said that about 20,000 workers could receive layoff notices, even though only half as many positions would ultimately be eliminated. Many of the job eliminations would happen with layoffs, but some could take place through attrition. Administration officials said the extra notices must be sent because the administration might not be able to legally lay off some of the workers who get them; other employees would be moved into other state jobs. The layoffs would affect mostly workers with the least seniority.

"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."

The layoff threat comes as the governor is forcing most state workers to take off two Fridays per month without pay -- the equivalent of an approximately 9% pay cut. The first mandatory day off for state workers was Friday.