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Schwarzenegger Warns Of More State Layoffs

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Jul 14, 2009 2:03 pm US/Pacific

Schwarzenegger Warns Of More State Layoffs

SACRAMENTO, Calif. (AP) ― Gov. Arnold Schwarzenegger has told state employee unions his administration is preparing to cut another 2,000 state jobs to deal with California's $26.3 billion budget deficit.

The Department of Personnel Administration informed the unions of the potential cuts during a conference call Tuesday.

The administration has already sent layoff notices to 33,000 state employees, but it's unclear how many workers have actually been laid off because many were able to move into special-fund posts that weren't covered by the layoffs.

Schwarzenegger has also proposed a 5 percent pay cut for state workers that would have to be agreed on as part of budget negotiations.

The governor plans to meet Tuesday with the Legislature's top four leaders to address the deficit.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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