Expect To See California State Workers Furloughed Soon

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This isn't the first time California has faced a massive budget deficit.

However the last time the deficit have been this large, the governor started talking about furloughs.

Republican Gov. Arnold Schwarzenegger quickly proposed unpaid days off for state workers in 2008, while the state was dealing with a $40 billion deficit.

Well, California is now faced with a $54 billion deficit due to the impact of the COVID-19 pandemic. The Department of Finance hasn't come forward to discuss how they will look to reduce this time around, but publicly the state has not discussed furloughs.

The only public information that we know is that all departments have been directed to avoid unnecessary travel and contracts, to use discretion in hiring and to cancel leave buyback programs.

Gov. Gavin Newsom said in a press conference that the state is in a better position to handle their budget problems than they were last time. He thanked the former Gov. Jerry brown for leaving him with a substantial reserve.

Brown apparently anticipated another recession, even before the COVID-19 pandemic cut state revenues.

He added that California “is one of the most efficient per capita in the number of employees of any state in the country.”

But according to Newsom the only way the state can survive this crisis will also depend of the degree of federal support that they get.

“Because of this pandemic, because of what it has done, these revenue shortfalls are bigger even than the state of California,” said Newsom.

The governor is expected to speak more on the state's deficit this Thursday during his press conference.

For more information, please read here.

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