Gov. Jerry Brown is targeting a new part of the budget to close a widening
deficit by seeking to reduce state worker costs in his revised spending plan,
according to sources with knowledge of his plans.
Brown, who has been in discussions with labor unions, is expected to release
an updated budget proposal on Monday. The sources were not authorized to speak
publicly before the governor's announcement.
The possibility of cuts to state employees is a symptom of lagging tax
revenue. California has collected $3.5 billion less taxes than expected in the
current fiscal year, according to the controller, and the budget gap will be
larger than the $9.2 billion estimated in January.
Brown spared state employees when he released his preliminary budget proposal
earlier this year, but sources said he will now ask them to shoulder cuts as the
red ink piles up.
Itfs unclear how much Brown wants to reduce employee costs and how hefll
achieve the savings. Costs can be reduced through layoffs, cuts to pay and
benefits, or furloughs. The Sacramento Bee first reported the possibility on
Wednesday afternoon.
H.D. Palmer, a spokesman for Brownfs Department of Finance, wouldnft talk
about potential cuts before Brown releases his new budget proposal.
Many cuts would require reopening union contracts. But contracts with all 12
public employee unions, representing 182,000 workers in total, donft expire
until July 2013.