Gov. Arnold Schwarzenegger won't send out layoff notices today, despite the Legislature's failure to meet his Friday deadline for a budget deal that includes $1.4 billion in employee cost savings through June 2010.
Schwarzenegger had said he would send out layoff warnings to 20,000 state workers aiming to lay off 10,000 for an estimated $750 million savings in fiscal 2009-10. The warning letters would trigger a 120-day-process leading up to the terminations. Employees in positions that are about to be terminated can bump those with less service time from jobs that aren't going to be cut. Those bumped workers can then displace others below them.
This is what Schwarzenegger press secretary Aaron McLear moments ago said to Bee Cap Bureau reporter Kevin Yamamura:
"There will be no layoff notices today. The governor believes we are close to an agreement that includes the spending reductions, revenue increases, economic stimulus and government efficiency that the state needs. We are still in negotiation within the big 5 and with unions with regard to state employee compensation. But we are close to an agreement on the budget. The governor believes we will have a vote in the next couple days."
Check out this morning's story by Jim Sanders for details about the pressure on the Legislature to get a budget deal done -- and pressure on individual legislators to keep this deal from getting done. And you can read this report on how union contract talks are moving in tandem with budget discussions.