California Budget Crisis
Comm/215 BSDC0TEBB5 Michele Watson
Poor money management of the State of California has caused people to suffer. The global recession has caused California and many other states to plummet. In the Los Angeles Times California deficit is said to be $25.4 billion according to the states chief analyst. The state of California has taken drastic measure to fix this problem. Fixing the problem includes layoffs of 4,500 state/government employees, furlough, minimum wage, and cutting of many state funded programs. Fifty days into this fiscal year, there still not a budget signed and in place. At this time they are not able to come up with an agreement. This has been a very difficult time for all Californians. California needs to balance the budget correctly. The answer to fixing the budget is not hurting the agencies that have help the state rather than hurt them.
On December19, 2008 the Department of Personnel Administration was ordered to start layoffs for civil service employees. That would take effect January 1, 2009 through June 1, 2009. They were also ordered to implement a furlough program. A furlough is unpaid time off given to government employees for the purpose of reducing the state’s budget. Arnold Schwarzenegger adopted a furlough program that would affect 200,000 civil service employees starting February 2009. This program would make all state employees work two days a month free. When the results were still the same the two days a month quickly went to three days. The three days became effective July 1, 2009 that would continue until June 30, 2009. Those three days caused a 14% pay cut for employees. That caused a problem within itself. Everyone suffered due to the furloughs. Homes, cars, businesses, were lost. The state believes that furloughs would help save the state a great deal of money. According to the IVN furloughs has been costing the state $465...
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