California Worker Furloughs Increase State’s Long-Term Costs

SACRAMENTO (CBS/AP) – The state employee furloughs started under Gov. Arnold Schwarzenegger greatly increased the cash-out liabilities owed by California taxpayers when those workers leave government service.

A report released Thursday by the nonpartisan Legislative Analyst’s Office says payments to employees for accrued leave time are at historic levels, reaching nearly $270 million in the last fiscal year.

The furloughs were intended to help close budget deficits and saved the state about $5 billion over five years. But nearly $1 billion now must be paid to employees in accrued leave time when they quit or retire.

The report says many workers simply substituted furloughs for their normal vacation days, increasing the state’s liabilities.

California’s long-term liability to pay employee leave balances is now $3.9 billion annually, or 27 percent of all salary costs.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Comments

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS San Francisco

Get The New CBS SF Bay Area Local App
Got Our Weather App?

Listen Live