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.
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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.
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