An October 2009 UC Berkley study examined data from the California Office of the State Controller on the cost of California’s imposed furloughs. In February 2009, Governor Schwarzenegger required state workers to take two unpaid days of leave a month. He later increased the furlough to three days a month.
Data shows that 2009-2010 furlough days will cost California $503 million. A worker’s salary reduction from the furlough days is more than seven weeks of pay per year. California state workers will lose $1.63 billion in pay. In exchange, the furloughs will save the State’s general fund only 12 cents for every dollar cut in wages.
Salary cuts will reduce worker spending by an estimated $1.24 billion over the year. As a result, Sacramento County alone may shed 4,100 jobs.
In 2009, nearly every state has drastically cut services and laid off workers. These cuts force working people to bear the burden of an economic crisis caused by Wall Street and the banks.
