California plans more furloughs due to budget

Jun 26th, 2009 - Reuters

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SAN FRANCISCO (Reuters) - California will force state employees to take a third unpaid day off work per month starting in July if the legislature cannot close a mounting budget gap, Governor Arnold Schwarzenegger said on Friday.

State Controller John Chiang has said he will start paying state bills with IOUs on July 2, a day after the fiscal year starts, if the $24.3 billion budget gap is not closed with a new spending plan, since the state is running out of cash.

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