Gov admits furloughs saved state no money

Lawsuit: Special fund workers lost pay for no economic benefit to state coffers

Updated Nov. 13, 2009
Gov. Schwarzenegger’s private lawyers admitted in court papers that more than 1,000 workers at five state agencies were furloughed despite achieving no economic gains for the state – a clear abuse of power.

The admission, which Schwarzenegger’s legal team included in a court filing in Local 1000’s challenge to the furloughs of workers not paid through the General Fund, marks the first time that the governor has conceded that the 14 percent pay cut endured by thousands of these state workers did not help the state close its budget deficit.

That case is scheduled for hearing in Alameda County Superior Court on Nov. 16.

The court filing includes a declaration from Alene Shimazu of the Department of Personnel Administration in which she admits that employees of the California State Teachers Retirement Fund, the California Housing Finance Agency, the California School Finance Authority, California Horse Racing Board and the California Health Facilities Finance Authority were furloughed for no economic reason.

Local 1000’s suit maintains that thousands more workers should be exempt from furloughs at dozens of agencies that are either self-funded, depend on special funds, or primarily receive federal money.