Schwarzenegger threatens more furloughs

SACRAMENTO, June 27 (UPI) -- California state workers will be furloughed one additional day each month if legislators don't find a budget solution now, Gov. Arnold Schwarzenegger says.

The governor said Friday the third day of furloughs will start next month, affecting 215,000 state workers, if lawmakers don't send him a "full budget solution" dealing with an expected $2.78 billion cash shortage for July, The Sacramento Bee reported.

"It's clear that if the Legislature does not send a full budget solution to my desk by June 30, California will face an extreme cash-flow problem that will threaten our ability to pay for vital services," Schwarzenegger said in a statement. "I cannot force the Legislature to act, so I must do what is in my power as governor to conserve cash so that the state can continue to operate."

The newspaper said the furloughs are meant to avoid a scenario whereby the state would have to issue IOUs to vendors and low-income disabled and elderly residents starting July 1.

Schwarzenegger said the furloughs would save about $61 million in July, $184 million when combined with two other unpaid leave days.