An Assembly bill signed yesterday as part of the state's new budget allows CalPERS to use more than $265 million in excess reserves to offset members' health premiums for two months.You can expect to see the savings in the fall. CalPERS will post the timing on its Web site.

The governor isn't giving on demands to curb furloughs for agencies that are paid from special funds or losing money for the state because of shortened work schedules, reports State Worker columnist Jon Ortiz.

From the LA Times: With its staff furloughed three days a month, the Franchise Tax Board -- the state's tax collector -- could lose at least $550 million over the next three years and another $372 million for the two years after that from lost revenue and the backlog of dealing with disputes and late collections.

Gov. Schwarzenegger signed the budget yesterday, but not before paring it down further and nearly decimating some programs. For a bullet-point breakdown of the budget fixes, click here. And just when you've gotten comfortable, be warned that the new plan has "plenty of landmines," is "painful but precarious" and has no "safety net."

The governor signed the budget package this morning after making additional cuts that left it in the red.

Sacramento Bee/syndicated political columnist Dan Walters reports this morning that, with the budget deal done, politicians are now talking of reform. It may happen only with a constitutional convention, Walters suggests.

This short item from the mercurynews.com (San Jose Mercury News blog) reveals the hardships of a couple of real people behind the furlough cuts -- and of the public.

The Sacramento Bee Capitol Alert blog reports the governor has ruled out a fourth furlough day for state workers as he makes his final cuts to the state budget.

A Sacramento Bee editorial, one of a series this week, defends the state furloughs as a necessary option to save jobs but says more must be done. State service needs to be made more efficient, with better use of technology and private firms to perform basic services.

According to a Sacramento Bee story Sunday, the governor and legislative leaders didn't negotiate the budget alone. They had help -- from lobbyists. Related articles: Sacramento Bee editorial: The budget is just the beginning; California also needs a review of its tax structure, spending priorities and governance. Los Angeles Time editorial: Putting California back together will require a constitutional change.

The Assembly approved the final bill in the budget package to close a $26 billion gap this afternoon. The plans to take gasoline tax money from local governments and allow oil drilling off the Santa Barbara coast were axed. Deep cuts for education stayed in but will be reimbursed in the future. The final plan reduces the budget by $24 billion. Gov. Schwarzenegger probably will not act on the bills until next week, and it may take weeks before state can stop issuing IOUs.

State Worker columnist Jon Ortiz reports in his blog that SEIU succeeded in having its lawsuit to exempt SEIU's SCIF workers from the furloughs succeeded in having its case transferred to Judge Peter Busch, the same judge who ruled that SCIF had illegally furloughed its legal staff. Later that same day, Gov. Schwarzenegger's legal team challenged the assignment.

California State University professors voted to be furloughed two days a month to prevent further layoffs and save courses. A large majority also voted that they have "no confidence" in their chancellor. The details of the furlough proposal now must be negotiated.

The Senate finished its budget package at about 6:30 this morning; the Assembly is still struggling to complete its plan. The Senate's budget reduces the general fund by 18 percent from two years ago. Major cuts were made to public schools and colleges, social services, health programs and state prisons. State workers will still be furloughed three days a month.

A lubricant spill July 17 -- a furlough Friday -- took nearly 12 hours to clean up because nearby Caltrans workers couldn't be reached, prompting State Worker columnist Jon Ortiz to ponder: Were the phones not answered on purpose? Another Ortiz observation: The delay to close the budget deal cost the state the same amount of money it will save from the third furlough day.