Government policies can be like raising kids: They test your sense of what's fair.

The state is on the verge of losing a lawsuit that aims to reclaim millions of dollars in wages withheld from furloughed employees.

Hundreds of current and former state workers stand to receive millions of dollars in back wages they lost to furloughs.

Assembly Speaker John A. Pérez backed down Tuesday from a threat to furlough the entire staff of Democratic Assemblyman Anthony Portantino.

San Francisco's 1st District Court of Appeal on Monday reversed a lower court's ruling on furloughs, dealing another setback to state labor unions' efforts to claw back millions of dollars in pay their members lost.

Gov. Arnold Schwarzenegger called today for a temporary 1.5-cent increase in the state sales tax to help close an $11.2 billion deficit in the state budget, as well as new taxes on liquor and oil production.

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