A new report from the Legislative Analyst's Office says in its introduction: "The state’s revenue collapse is so dramatic and the underlying economic factors are so weak that we forecast huge budget shortfalls through 2013-14 absent corrective action." The only hope the state has, the report says, is to "begin laying the groundwork now." The report does suggest some solutions (click on the headline to read them here). The LAO on Nov. 11 also issued an assessment of the governor's proposals.

You, as a state worker, now face a 5 percent pay cut and the loss of two paid holidays. Are the legislators who will vote on the budget proposal also taking cuts? They're not. The governor doesn't control the legislators' pay, so the proposed cuts don't affect them. This has riled many state workers, according to Jon Ortiz's The State Worker column in The Sacramento Bee today. What do you think? We'd like to hear your opinions, at lholderness@calcsea.org, and probably so would Jon at jortiz@sacbee.com.

State workers take a couple of hits in the Sacramento Bee this morning. A source quoted in The State Worker column says he has no sympathy for a "measly 5 percent" paycut. A measure just passed in Orange County indicates the feeling may be widespread and could bear ominous consequences  To respond to the article, email jortiz@sacbee.com. The State Worker blog asks a disturbing question: Does the state have too many managers and supervisors? We encourage you to post a response. 

In what is probably good news for state workers, the governor's budget plan apparently isn't likely to pass as proposed -- or any time soon. The governor's plan to close the $11 billion gap puts an unfair burden on state workers. "Don't bet on" solving the crisis in this session, writes the San Francisco Chronicle today. The plan is a "collection of already rejected ideas, supported by almost no one," says The Sacramento Bee.

No surprise: State workers are steaming over Gov. Schwarzenegger's proposals to cut their pay and eliminate holidays, writes The State Worker columnist Jon Ortiz of The Sacramento Bee. In his long list of proposed cuts, the governor wants to furlough state workers one day a month for 19 months, ax two paid holidays, end overtime pay for working on holidays and reduce overtime compensation. He also wants to raise the sales tax to more than 9 percent and tax additional services. ACSS is opposing the cuts on state workers. Today's Bee also publishes the details of the budget plan, with reactions. They're worth checking out.

According to The Sacramento Bee, Senate President Pro Tem Don Perata says he would support raising revenues to help close the budget gap by restoring vehicle license fees and taxing offshore oil production. The gap is projected to be massive: $11.2 billion this year and $13 billion more next year. Gov. Schwarzenegger is expected to reveal his plan for closing the gap today.

The Sacramento Bee is reporting that, according to a report from the state auditor, 20 state workers from nine different departments and agencies were involved in improper on-the-job activities that cost taxpayers $201,000. Only some of that money is now being recovered.

After the recent 85-day budget battle, most Californians would like to see the budget process changed, at least according to a survey conducted this month by the nonpartisan Public Policy Institute of California. The survey reveals that more than three-fourths of Californians want major changes in the budget process and nearly half support lowering the marjority required to pass the budget from two-thirds to 55 percent.