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Schwarzenegger orders more furloughs for state workers

Less than one month after ending furloughs for about 200,000 state workers, Gov. Arnold Schwarzenegger this morning brought back a scaled-down version of the policy, effective Sunday.

The governor made the decision this week after Controller John Chiang said that unless lawmakers enacted a budget soon, the state's cash would go into the red by October. Chiang said he'll start issuing IOUs in August or September to conserve funds as long as possible.

"We have a fiscal crisis," Schwarzenegger spokesman Aaron McLear said this morning as he explained the new furlough order. "We're doing what we have to do to conserve cash."

Read more at The Sacramento Bee's blog, The State Worker »

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