12/19/2008 Print Version |
WHEREAS, due to developments in the worldwide and national financial markets, and
continuing weak performance in the California economy, there is an
approximately $15 billion General Fund deficit for the 2008-09 fiscal
year, which without effective action, is estimated to grow to a $42 billion
General Fund budget shortfall over the next 18 months; and
WHEREAS the cash reserve in the State Treasury is below the amount
established by the State Controller to ensure that the cash balance does not
reach zero on any day in the month; and
WHEREAS without effective action to address the fiscal and
cash crisis, the cash reserve in the State Treasury is estimated to be a
negative $5 billion in March 2009; and
WHEREAS on November 6, 2008, due to concerns regarding
dramatically declining revenues, I issued a Special Session Proclamation and
convened the Legislature of the State of California to meet in extraordinary
session to address the fiscal crisis that California faces; and
WHEREAS the Legislature failed during that Special Session to
enact any bills to address the State's significant economic problems; and
WHEREAS on December 1, 2008, due to the
worsening fiscal crisis, I declared that a fiscal emergency exists and convened
the Legislature to meet in extraordinary session to address the fiscal crisis
that California faces; and
WHEREAS on December 1, 2008, due to the fiscal emergency and
the nationwide economic recession, I also issued a Special Session Proclamation
and convened the Legislature of the State of California to meet in
extraordinary session to address the economic crisis; and
WHEREAS on December 17, 2008, the California Pooled Money
Investment Board took the unprecedented action to halt lending money for an
estimated 2,000 infrastructure projects as a result of the cash crisis,
including the substantial risk that California will have insufficient cash to
meet its obligations starting in February 2009; and
WHEREAS in the December 1, 2008 fiscal emergency extraordinary session,
the Legislature failed to effectively address the unprecedented statewide
fiscal crisis; and
WHEREAS immediate and comprehensive action is needed to address the
fiscal and cash crisis facing the State of California; and
WHEREAS failure to substantially reduce the deficit carried
forward from the current fiscal year into the next fiscal year will likely
prevent the State from being able to finance the cashflow
shortages of billions of dollars, thus making it likely that the State
will miss payroll and other essential services payments at the beginning of
2009; and
WHEREAS immediate and comprehensive action to reduce current spending
must be taken to ensure, to the maximum extent possible, that the essential
services of the State are not jeopardized and the public health and safety is
preserved; and
WHEREAS State agencies and departments under my direct executive
authority have already taken steps to reduce their expenses to achieve budget
and cash savings for the current fiscal year; and
WHEREAS a furlough will reduce current spending and
immediately improve the State's ability to meet its obligations to pay for
essential services of the State so as not to jeopardize its residents' health
and safety in the current and next fiscal year.
NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of
California, by virtue of the power and authority vested in me by the
Constitution and statutes of the State of California, do hereby determine that
an emergency pursuant to Government Code section 3516.5 exists and issue this
Order to become effective immediately:
IT IS ORDERED that effective February 1, 2009 through June 30, 2010, the
Department of Personnel Administration shall adopt a plan to implement a
furlough of represented state employees and supervisors for two days per month,
regardless of funding source. This plan shall include a limited exemption
process.
IT
IS FURTHER ORDERED that effective
February 1, 2009 through June 30, 2010, the Department of Personnel
Administration shall adopt a plan to implement an equivalent furlough or salary
reduction for all state managers, including exempt state employees, regardless
of funding source.
IT IS FURTHER ORDERED that effective
January 1, 2009 through June 30, 2010, the Department of Personnel Administration
shall work with all State agencies and departments to initiate layoffs and
other position reduction and program efficiency measures to achieve a reduction
in General Fund payroll of up to ten percent. A limited exemption process
shall be included.
IT
IS FURTHER ORDERED effective January
1, 2009, the Department of Personnel Administration shall place the least
senior twenty percent of state employees funded in any amount by General Fund
resources on the State Restriction of Appointment (SROA) list.
IT IS FURTHER ORDERED that effective January 1, 2009 through June 30,
2010, all State agencies and departments under my direct executive authority,
regardless of funding source, are prohibited from entering into any new
personal services or consulting contracts to perform work as a result of the
furloughs, layoffs or other position reduction measures implemented as a result
of this Order.
IT IS REQUESTED that other entities
of State government not under my direct executive authority, including the
California Public Utilities Commission, the University of California, the
California State University, California Community Colleges, the legislative
branch (including the Legislative Counsel Bureau), and judicial branch, implement
similar or other mitigation measures to achieve budget and cash savings for the
current and next fiscal year.
This Order is not intended to create,
and does not create, any rights or benefits, whether substantive or procedural,
or enforceable at law or in equity, against the State of California or its
agencies, departments, entities, officers, employees, or any other person.
I
FURTHER ORDER that, as soon as
hereafter possible, this Order shall be filed in the Office of the Secretary of
State and that widespread publicity and notice be given to this Order.
IN
WITNESS WHEREOF I have hereunto set
my hand and caused the Great Seal of the State of California to be affixed this
19th day of December, 2008.
ARNOLD SCHWARZENEGGER
Governor of California
ATTEST:
DEBRA BOWEN
Secretary of State
