Schwarzenegger To Bring Back Furloughs

Gov. Schwarzenegger says he'll bring back furloughs for thousands of state workers until California passes a budget. Schwarzenegger released a new executive order today that requires state workers to take three unpaid days off per month starting next month. Schwarzenegger says he's trying to conserve cash as the state faces a $19 billion deficit.

State Controller John Chiang has warned he'll start issuing IOUs in August or September if the budget stalemate drags on in the Legislature.

The new order exempts employees who work for departments that collect revenue, including the Franchise Tax Board. It also exempts about 37,000 workers in six unions that recently reached tentative
labor agreements with the administration.

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