Democratic gubernatorial candidate Jerry Brown has published his no-nonsense plan for managing California's budget and fixing the state's sluggish economy. Nowhere in its eight pages does he suggest furloughing state workers, reducing state workers' pay to minimum wage, laying off state workers or destroying their pension plan.

State Controller John Chiang announced today in his August report that California won't need to issue IOUs until at least early October, later than previously expected.

The California Budget Project has published a report, "Stuck between a recession and a recovery," that analyzes several aspects of the state's job market -- calling it the toughest in decades. Recent signs of recovery from the downturn don't seem to have included jobs. The report concludes: "Barring further efforts to bolster job creation, the state will continue to languish for several more years ... with high levels of unemployment." Efforts that could turn the state's job picture around are presented in a CBP column published on Labor Day in the (San Bernardino County) Press-Enterprise.

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.

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.

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.