January 12, 2010
California Budget – the five percent solution
This is from Governor Schwarzenegger’s press release about his proposed budget:
To achieve $1.4 billion in General Fund savings, Governor Schwarzenegger proposed 15 percent reduction in state personnel costs achieved by modifying employee compensation and reducing our workforce budget … as follows:
* Employees will be required to contribute an additional five percent towards their retirement costs;
* An across the board five percent reduction in all salaries;
* A five percent reduction in the cost of the state workforce payroll implemented by executive order S-01-10 requiring all department directors to reduce their payrolls by five percent.
This sounds a little too incremental for me. Certainly most State employees can take a five percent hit – they have pretty good jobs, but this isn’t getting to the root of the problem. What about eliminating Civil Service postions all together? Put government workers under employment contracts instead – even generous ones. Then they could stop paying pensions as well, something none of the rest of us get.

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