Business & Economy

State budget crunch will eliminate jobs

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Any budget deal Governor Schwarzenegger and lawmakers hammer out will eliminate some state jobs.

The governor’s spokesman Aaron McLear told KPCC’s "Patt Morrison" that California’s laid off 5,000 employees so far, and it’s unlikely to fill another 2,000 vacancies.

Aaron McLear: "What we are trying to do is to eliminate the, the jobs that are vacated right now and to try to move folks to other areas of service not in the general fund or to help them find work in the private sector. What we would like to do is, is avoid layoffs as much as possible, but because we are downsizing these programs severely, there will be layoffs associated with the cuts."

The governor and legislative leaders say they’re making progress toward closing the state’s $26 billion budget shortfall.