After a report in The Sacramento Bee that the state workforce had remained relatively flat in the past year and a half, Gov. Schwarzenegger told his top officials yesterday to stop hiring. It was not an official order but the governor did say agencies should not be hiring unless "absolutely necessary."

The size of the state workforce has stayed flat, but state agencies have hired nearly 23,000 new workers in the past year and a half. Most of them were not full time. During the same time period, the state lost 18,000 workers to retirement. Who's done the hiring? Here's a list.

Grief counseling requests have risen in the wake of state-worker suicides, The Sacramento Bee reports. Though the sample is small, the story quotes experts as saying "It's clear that the state's unprecedented labor unrest -- on again, off again furloughs ... rising public disdain for civil servants -- has increaswed tension for a group of people who tend to value security and predictability in their work."

The Professional Engineers in California Government and the California Association of Professional Scientists have filed lawsuits to stop the furloughs, and CalPERS and CalSTRS have filed a joint writ of mandate with the same goal. PECG and CAPS also contend the minimum wage order is illegal. Read CalPERS/CalSTRS writ here.

Update: Nurses' protest blasts Whitman's voting record. Earlier story: Today is the 90th anniversary of the 19th Amendment, which gave women the right to vote. A rally at the Capitol to celebrate the anniversary also will focus on Republican gubernatorial candidate Meg Whitman's spotty voting record. Demonstrators plan to arrive at the Capitol steps at 3 p.m.

President Arlene Espinoza, along with ACSS members from Chapters 503 and 504, attended a rally for Jerry Brown in Santa Rosa yesterday. In his speech, Brown called the current tie between him and Meg Whitman, who has spent more than $100 million so far, a "phenomenal outcome" for him. President Espinoza says Brown pointed out that, despite the economic downturn, California's economy was $1.9 trillion last year, one of the highest in the world.

The State Worker examines the job-loss chart Gov. Schwarzenegger totes with him to illustrate that private-sector employees have fared worse in the economic downturn than state workers.

From The State Worker blog: The DPA won some arguments, but not all, in Judge Patrick Marlette's tentative ruling on state Controller John Chiang's criticisms of the DPA pay letter ordering minimum wage for state workers. Some issues were left open to further litigation. The blog item includes links to the ruling and legal documents.

From the LA Times: Already the state budget is 54 days overdue (and counting) but Gov. Schwarzenegger says he won't sign until the Legislature retrofits the fiscal system he believes is bedeviling California.

Jerry Brown, on a weekly call to a San Francisco radio station, told the interviewer furloughs were not the "best way to go" and that state workers shouldn't be punished because the Legislature can't pass a budget. He also addressed his own pension, which would be more than $78,000 if he retired next year, saying "if every state worker worked as long as I did, to the age of 72, the pension funds would have so much money, they could start lending money to China."

The State Worker: Gov. Schwarzenegger may have won a new battle in the war to cut state workers' pay, but, with less than five months left in office, his position has weakened. Layoffs and minimum wage are not likely options for him any more.

From Sacramento Bee Capitol Alert: State Controller John Chiang told the Sacramento Press Club Wednesday that he will soon be printing IOUs if the Legislature and Gov. Schwarzenegger can't agree on a state budget. "If current conditions hold," Chiang said, "we could start issuing IOUs in two to four weeks." The state issued about 450,000 IOUs for two months last summer during a cash crunch as the 2009-2010 budget was being re-written. The state also issued IOUs in 1983 and 1992.
 

Second-day story: The ruling yesterday that furloughs are back on is the latest twist in the roller coaster ride that leaves state workers wondering "What's next?" The state Supreme Court agreed with Gov. Schwarzenegger that the furloughs would continue until the court decides the issue. Oral arguments begin Sept. 8, with a decision expected near the end of the year. Related stories: How are state workers coping (a forum); statement from the governor's office; statement from DPA; LA Times story.

For budget watchers, the nonpartisan California Budget Project has produced two reports this month that clarify the recent budget proposals: "Understanding the Tax Swap" and "How do the Budget Plans Compare?"

Who's out of touch with reality here? Gov. Schwarzenegger told the California Hispanic Chamber of Commerce yesterday the current economic downturn has had "no effect" on state employees. The state workers who complain are "not in touch with reality," he said. His proof? Job losses have not increased. The governor did not, apparently, mention bankruptcies, foreclosures and severe belt-tightening.

Republican gubernatorial candidate Meg Whitman has upped donations to her campaign by another $13 million, bringing the total she has contributed from her personal fortune to $104 million – more than any other candidate in California history.

In an interview with KCRA 3 TV in Sacramento today, Democratic gubernatorial candidate Jerry Brown called the furloughs "unfair," adding that state workers should not suffer because the governor and the Legislature cannot pass a budget.

The California Budget Project has produced an easy-to-understand grid comparing the budget plans advanced by the governor, Assembly, Senate and Budget Conference Committee.

From The Sacramento Bee: Democratic gubernatorial candidate Jerry Brown has released an expanded clean-energy jobs plan, based on AB 32, the state's landmark encironmental law. Brown says his plan will create 500,000 new jobs in California. Read the full plan here. Republican opponent Meg Whitman has said she would suspend AB 32.

From a DPA memo reported by The Sacramento Bee: "Effective immediately, there is no longer an expiration date to previously accrued furlough hours." However, furlough hours still cannot be cashed out. The governor's office responds.

Controller John Chiang has responded to President Arlene Espinoza's letter thanking him for his efforts to protect the incomes of state workers. In Chiang's thoughtful response, he called the governor's minimum-wage proposal a "cheap political trick" and explained that the state's inability to reduce pay was "not a simple software problem."

Gov. Schwarzenegger, in Fresno today, defended his furlough and minimum wage orders, saying public employees are not in touch with the private sector. "We all have to make certain sacrifices," he said. Later he added: "We're not taking anything away from any state employee" and "It's not about me, me, me." The link includes a video link.

CalPERS CEO Anne Stausboll sent a letter to Controller John Chiang today saying she did not intend to furlough CalPERS employees, "notwithstanding the governor's illegal furlough order."

The Sacramento Bee reports today that Republican Meg Whitman has already spent $99.7 million in her quest to become the next governor of California. Attorney General Jerry Brown, whom ACSS supports, has spent $633,000. Most of Whitman's money came from her personal fortune. The two candidates are virtually tied in the polls.

Last week's Time magazine featured a story comparing Jerry Brown's candidacy for governor to Meg Whitman's. So far, Whitman's outlay has included $91 million of her own money compared to Brown's entire campaign expenditure of $400,000, yet the two are virtually tied. Look for Brown's campaign to ramp up after Labor Day. The link to "Whitman's views on public-employee unions" is worth reading for state workers. ACSS is supporting Brown. Volunteer to help ACSS-endorsed candidates here. (Note: Time abridges its online articles.)

From The State Worker blog: State workers are getting only a month's reprieve from furloughs. Gov. Schwarzenegger has ordered three-day furloughs to begin again Aug. 1. They'll end when the Legislature passes the budget. Unlike the previous furlough order, the new order exempts employees who work for departments that collect revenue. The governor ordered the furloughs after state Controller John Chiang said he would begin issuing IOUs in August or September if the budget doesn't pass. Read the governor's order GAAS:472:10.

A Sacramento Superior Court judge has pushed back the date that attorneys will argue about minimum wage for state employees, guaranteeing full pay at least through September.

In a strong endorsement for Prop. 25, a ballot measure that would end the two-thirds requirement for passing the budget and raising taxes, two editors who rarely agree take the same side. The major reason: A majority vote would almost certainly end the budget gridlock that wreaks havoc on state workers and nearly everyone else. It also is the responsible thing to do. ACSS supports this measure.

The State Worker column reports today on the costs of the minimum-wage fight between Gov. Schwarzenegger and state Controller John Chiang. Has Schwarzenegger won by losing?

Read the full story on the court ruling that denied Gov. Schwarzenegger's request to force the state controller to pay state workers minimum wage. The order gives state workers at least two more months of full pay. The story links to Judge Marlette's ruling.

In a much-needed turn of good news for state workers, Sacramento County Superior Court Judge Patrick Marlette today denied Gov. Schwarzenegger's request to compel the state controller to pay state workers the federal minimum wage. A hearing on the issues is scheduled for July 26, and later in Augus. State Controller John Chiang has said he would not issue minimum-wage checks unless a court order to do so was issued before the payroll deadline of July 22.

State Worker columnist Jon Ortiz interviews state Controller John Chiang on his refusal to pay minimum wage. "Our issue with the governor's pay order is that it's vague," Chiang said.

The State Worker column this morning tracks the "whiff of labor unrest" being detected among state employees. Although state workers may be "tapped out," beware of sickouts, the column warns. A minimum-wage hearing starts Friday in Superior Court.

CalPERS is reporting an 11.4 percent return on preliminary estimates for the one-year period ending June 30. The upturn for the 2008-09 fiscal year exceeded CalPERS' long-term annualized earnings target.

SEIU Local 1000 last Friday made a contact proposal that asked for 5 percent COLAs in 2012 and 2015 and some pension plan reductions. It didn't include an increase in retirement contribution. Now DPA must respond.

State Worker blog: The California Association of Professional Scientists and the Professional Engineers in California Government have filed a motion to be a party to the minimum-wage lawsuit, both on Controller John Chiang's side.

The Sacramento Bee this morning outlined some horrific consquences if the minimum-wage order is carried out. Not only would the cuts affect state worker families, but the ripple effect on the economy would be enormous. The value of the lost wages could support as many as 25,000 jobs. Some banks, including the Golden 1 Credit Union, founded by state supervisors, will offer interest-free loans to state workers on minimum wage. Link includes graphic.

For more good points to add to your arsenal of arguments against the governor's brutal minimum-wage order, read this Sacramento Bee editorial: A couple of quotes: "Many state workers are on the brink now" and "Both the governor and the Legislature need to stop using state workers as pawns in a dangerous game."

Calling the situation "regrettable" for "innocent Californians," Controller John Chiang's chief of staff outlined the reasons the controller is unable to comply with the governor's minimum wage order in a July 2 letter to DPA Director Debbie Endsley. He challenges the DPA's interpretation of the minimum-wage law and the feasibility of implementing the change. Attached are relevant communications from a previous controller written in 2004.

Two sources have put out Q&As answering common questions on the minimum wage order. The Sacramento Bee this morning published a brief but informative Bee Q&A; DPA provided its own DPA Q&A.with a little different focus. The affected state workers will not start receiving minimum wage until their Aug. 1 paychecks. Most supervisors would get $455 a week.

Late today, Gov. Schwarzenegger ordered state Controller John Chiang to reduce state worker pay to the federal minimum wage – $7.25 an hour. The employees in unions with tentative labor agreements are exempt. Most supervisors and managers would receive $455 a week. The cut is temporary until a budget is enacted. Once there is a budget, full pay will be reimbursed. By late Thursday, the controller's office had not responded.

Attorney General Jerry Brown, whom ACSS is endorsing for governor, cited a poll on a radio show today that shows GOP candidate Meg Whitman trailing him by six percentage points. The results are in spite of Whitman's high expenditures and negative ads against Brown versus very little campaigning by Brown so far. Whitman has said she wants to cut 40,000 state jobs.

The State Worker column reports this morning that "it's unlikely minimum wage will hit state workers, at least this month" and perhaps longer. Two reasons: Controller John Chiang is fighting the minimum-wage order in the courts; an appeals decision is due soon, and if Chiang loses, he could appeal to the state Supreme Court. That would likely delay the decision past the payroll deadline for July. Second, six tentative contracts already neogotiated protect union members from minimum wage, complicating the order.

The furloughs were scheduled to end with the close of the last fiscal year -- yesterday -- and now they officially have. The Department of Personnel Administration issued a pay letter today deleting the "furlough pay differential earnings ID." View the pay letter, which discusses the technicalities of the changeover, here.

CalPERS yesterday approved an increase in health insurance premiums next year for its public employees of more than 9 percent. The pension plan blamed rising costs for hospital care, doctor visits and prescriptions. Last year, the average premium for a family was $13, 375 a year.The new costs are here. 

Today is the last day of furloughs under the governor's current executive order. However, the governor could order more furloughs in the case of another fiscal emergency. The total work time missed from furloughs so far? The Sacramento Bee calculates it as a month and a half.

Four state worker unions – CHP, Department of Forestry Firefighters, Association of Psychiatric Technicians and the American Federation of State, County and Municipal Employees – have agreed to proposed contracts that would offer less generous pension benefits to new hires and hike all employee pension contributions. The move is predicted to save the state $72 million. The governor issued a press release on the agreements.

The Department of Finance Bulletin for June points to a state economy that is improving and may have bottomed out. "A resurgent labor force" has "pulled discouraged people back into the labor market," the report says. The labor force expansion was the strongest one-month gain since March 1990.

From The State Worker: A state appeals court has agreed with the lower court's ruling that furloughing State Compensation Insurance Fund employees violated state insurance code. The original case was filed and won by SEIU Local 1000 and Gov. Schwarzenegger appealed. Story includes a link to the decision.