FROM THE FOUNDATION

Quality of Care Woes Persist in California

Despite a heightened focus on patient safety in recent years, a new CHCF Almanac report finds that although incremental gains have been made, California is still grappling with quality improvement.

HIT Adoption Among California Dentists

What's the level of interest among California dentists in adopting health information technology, such as electronic dental health records, and how many are already making use of such systems? This snapshot of survey data provides some answers.

Health Care Reform's Formidable Challenge

A new Health Affairs analysis and commentary finds that while federal health care reform promises to overhaul the U.S. health care system, it does not adequately address growing Medicare spending.

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Thursday, July 29, 2010

Gov. Declares Financial State of Emergency, Orders Furloughs

On Wednesday, Gov. Arnold Schwarzenegger (R) declared a financial state of emergency and ordered a revival of three monthly furlough days that will affect more 150,000 state workers, the Los Angeles Times reports.

The furloughs are slated to begin the second Friday in August. According to the governor's order, the furloughs will end either when lawmakers pass a budget for the fiscal year that began July 1 or when administration officials decide the state has enough funds to provide full salaries to workers (Goldmacher, Los Angeles Times, 7/29).

The Schwarzenegger administration estimates that the furloughs will reduce state payroll spending by about $147.2 million monthly.

Exemptions

The furlough order will not apply to about 73,000 employees who either work for an exempted agency or belong to a union that made a previous deal with the Schwarzenegger administration (Ortiz, Sacramento Bee, 7/29). The Union of American Physicians and Dentists, which represents 1,800 state employees, is one of the labor groups exempt from the order (Los Angeles Times, 7/29).

Some other unions -- including the Service Employees International Union -- have yet to reach a labor contract agreement with the governor (Sacramento Bee, 7/29).

Criticism, Response

Yvone Walker, President of SEIU Local 1000, said the governor's furlough order is "absolutely a political calculation" designed to pressure lawmakers to agree to his budget terms (Lagos, San Francisco Chronicle, 7/29).

However, the Schwarzenegger administration said the strategy is necessary to prevent the state from running out of cash.

Controller John Chiang (D) recently said he would begin issuing IOUs in August or September unless lawmakers approve a budget plan (Los Angeles Times, 7/29).

Editorial

Schwarzenegger's furlough order and minimum wage threats qualify as "bullying tactics" that are "tiresome, mean-spirited and destructive," a Sacramento Bee editorial states. It concludes, "Difficult though it may be, Schwarzenegger needs to knock off the cheap tricks and truly engage in budget negotiations" (Sacramento Bee, 7/29).

Broadcast Coverage

Headlines and links for broadcast coverage of the furlough order are provided below.



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