According to a Sacramento Bee article, Gov. Schwarzeneggers' State of the State speech asked only for a solution to the budget crisis. The governor warned the state is within weeks of not having enough cash to pay its bills.

According to the Associated Press on msnbc.com, more people are moving out of California than moving into it. They're even trading ocean sunshine for snowy winters. The budget problems are part of the story.

If you work for Lt. Gov. John Garamendi, Attorney General Jerry Brown or state Treasurer Bill Lockyer, you're in luck. According to The Sacramento Bee, the three state officials will not furlough their employees. Lockyer challenged the legality of the furloughs. Jerry Brown will implement "alternative measures." Our favorite State Worker columnist, Jon Ortiz, has published an internal memo from Brown's office.

A Sacramento Bee alert reports that a lawsuit filed by the Professional Engineers in California Government and the California Association of Professional Scientists, seeking to block the governor's executive order, will be argued in court today. The organizations are challenging the governor's authority to force furloughs on state workers.

Legislative Analyst Mac Taylor issued a report today saying the governor's latest budget proposal relies on risky borrowing assumptions that could make closing the $40 billion gap even harder if they don't pan out. The Legislative Analyst's Office is nonpartisan. A Sacramento Bee article quoted Taylor as saying the problem is now "colossal." In a January 9 follow-up, The Sacramento Bee reports the Legislative Analyst is proposing that voters should decide whether or which taxes should be raised, perhaps as early as an April election.

State Worker columnist Jon Ortiz taps a nerve with state workers when he asks how they feel about the governor's handling of the budget crisis.

In the never-ending battle to close the budget gap, Gov. Schwarzenegger has vetoed the Democrats' plan that he said fell short of meeting his demands. The plan passed the Legislature with a simple majority vote because Democrats said it contained tax increases that did not require the two-thirds approval. The governor explained his action in a joint letter to Senate President Pro Tem Darrell Steinberg and Assembly Speaker Karen Bass.

As state agencies determine how to impelement the governor's furlough plan, State Worker columnist Jon Ortiz reports at sacbee.com that Cal/EPA is planning to close two Fridays a month. Other agencies may need to keep services available every day. Ortiz also reports that the Franchise Tax Board and Board of Equalization may be exempt from the furlough because they bring in revenue.

One of the casualties in the governor's 2009 budget proposal to close the $40 billion shortfall is the California Conservation Corps. The plan would eliminate the state CCC and reassign its responsibilities to local nonprofit groups. The CCC hires young adults to age 25 to help respond to disasters. Many of them live in state-owned residences. One director says the local CCC groups are not prepared to respond to emergencies.

The governor's plan also would eliminate or combine several state boards to "eliminate duplication."

For more information, read a Jan. 2 Sacramento Bee article and the governor's full budget proposal (in pdf format).

State Controller John Chiang has once again stood up for state workers. In a short statement issued Dec. 19, Chiang criticized the governor's executive order, saying it was the painful result of the governor's and Legislature's failure to resolve the budget crisis. "It is clear that the governor's executive order would hurt public servants and in turn adversely impact our economy and slow its recovery," he wrote.

In a letter dated Dec. 23, Chiang proposed the federal government authorize a limited guaranty program for state or local infrastructure bonds to help jump-start the economy. He said the proposal could "prevent the cancellation of important state and local government projects. ... Local economies recover when people are put back to work and physical assets are created." I

n a Dec. 22 letter,  Chiang warned the governor and Legislature and the state is less than 70 days from running out of cash. He characterizing the state's financial crisis as "dire."

Democratic leaders negotiating with the governor say the negotiations have "significantly narrowed" and a deal is "very close," The Sacramento Bee reports. Talks are continuing over the weekend by phone with the governor, who is vacationing in Idaho, and Democrats are hopeful a deal will be approved by the end of next week.

After refusing to sign a budget plan put forth by Democrats, Gov. Schwarzenegger yesterday ordered furloughs for state employees and "surplus" notices for the state's 20 percent least senior workers. Furloughs will begin Feb. 1 for rank and file and supervisors, Jan. 15 for managers and exempts, and will continue through June 30, 2010. Surplused workers will be subject to layoff, transfer or demotion beginning 120 days after receiving their notices.

Reaction to the measure has been strong. In an eblast yesterday to members, ACSS President Olin King said the order "won’t come close to resolving the deficit. This is showboating of the highest order.” He added: “It is counter to what President-Elect Obama is doing. Obama is trying to create jobs and the governor’s creating unemployment.”

We are protesting this unfair order and urge you to use our Legislative Action Center, at left, to tell the governor and the media your thoughts. We believe the governor and Legislature should focus on cutting expenses and increasing revenue, not on -- yet again -- placing an unfair burden on state workers.

The Republican legislative leaders released their plan to close the budget shortfall late Monday. Total cuts: $22 billion. They maintain the governor's proposed day-a-month furlough for state workers and the loss of two paid holidays. They also propose legislators take a 5 percent paycut. Here are lists of the plan's specific revenues and cuts.

The Legislature will meet today at 3 p.m. in a rare joint session to hear the latest news on the state's bleak financial outlook. The expected speakers will be State Treasurer Bill Lockyer, Controller John Chiang, Department of Finance Director Mike Genest and Legislative Analyst Mac Taylor. In her radio adress this week, Assembly Speaker Karen Bass said the session would "help lay the groundwork for objective, bipartisan solutions."

A Sacramento Bee editorial this morning calls for the state to eliminate reported "money-wasters." The comments were based on a Nov. 20 state auditor's report on the California Unemployment Insurance Appeals Board.

According to a survey by the National Conference of State Legislators, 15 states are forecasting double-digit budget gaps in 2010, and two of them have bigger deficits than California's. Arizona is projecting a 24 percent gap and New York is projecting 20 percent, compared with 18 percent for California. Other states have instituted hiring freezes, banned travel and frozen wages.