The state of California is tightening its belt these days, but not because its high on life residents are overweight. The world's seventh largest economy is facing a staggering $11 billion budget deficit and to combat it, California Governor Arnold Schwarzenegger recently proposed a plan to eliminate two paid holidays for 230,000 state workers, Columbus Day and Lincoln's Birthday.
The move will save the state an estimated $114 million over the next two fiscal years, although it's unknown what effect the extra work days will have on wine and cheese revenues.
As it stands, California, with 14 paid state holidays, affords its workers the most holidays in the country, just ahead of New Jersey's 13 paid days off. For perspective, the national average number of paid holidays for state and local government employees is 11 a year, according to the U.S. Bureau of Labor Statistics. Private sector employees average a mere eight paid holidays annually, unless one includes conferences, which are typically just reasons to drink in a different state.
Eliminating Chris and Abe's special days aren't Schwarzenegger's only proposals for combating the budget shortfall. In a November 6th letter addressed to "Valued State Workers," The Governator announced plans to "furlough" all state employees one day a month for the next year and a half. Not only can state workers kiss their two paid holidays goodbye, they can also say hello to a total of 19 unpaid days off from work over the next 18 months, which will result in an across-the-board 5 percent pay cut.
The same letter also detailed plans to make it easier for state departments to implement a 4 day, 40 hour work week, and the elimination of counting sick leave and vacation time as time worked for overtime purposes. Schwarzenegger claims that these changes will save the state a total of roughly $1.4 billion over the next two years. Not bad for someone who used to lift heavy objects for a living. Too bad the auto industry can't follow suit.
As one would expect, this announcement has caused some slight friction in Sacramento. Dave Hart, President of the California State Employees Association, made his displeasure known when he told the Associated Press that Schwarzenegger "says he values state employees, but it sure doesn't feel like it."
Hart went on to tell the AP that most bargaining units are in contract negotiations and would fight the proposals if they were to emerge from the special legislative session Schwarzenegger recently called to deal with the budget deficit. Mike Genest, the Governor's Finance Director, retorted to Hart's claims by saying "We think it's not so painful to give up a couple of holidays." Of course, Genest's response avoids addressing the thorny issue of furloughs.
Count the editorial pages of some of California's major newspapers amongst the plan's supporters. The Stockton Record recently wrote that state employees were "whining" over the plan and noted that "giving up a couple of days won't kill state workers, especially when some laid-off workers would be happy just to have a couple of days' work."
The Woodland Daily Democrat took a more delicate approach when it acknowledged the veracity of state workers' claims that the proposal will not solve the state's deficit dilemma, but added "It's going to be hard to control a $28 billion deficit (projected by 2010) doing any one specific thing. It's going to be a lot of small, individual, cost-cutting moves which will bring expenditures under control."
In the end, the financial bottom line of Schwarzenegger's plan is plain to see, and at a time where many are claiming "we're all in this together," the Governor certainly is making his belief in that view known. But it is ultimately Schwarzenegger's job to weigh the plan's discomfort for state workers against the state's current far reaching budget predicament. $114 million might be a drop in the bucket of $11 billion, but you have to start somewhere.
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