2nd Furlough Begins As Calif. Budget Talks Stall

Friday, July 17, 2009 3:25 AM

SACRAMENTO, Calif. -- Most state workers will stay home for the second time this month while Gov. Arnold Schwarzenegger and top lawmakers work on California's $26.3 billion budget deficit.

In addition to the worker furlough, a state-sponsored children's health insurance program will stop enrolling new clients on Friday.

The state is operating without a balanced budget plan. To reserve cash, California is issuing IOUs to contractors and government workers are being furloughed three days a month. At least one more major bank is expected to stop accepting those IOUs.

Schwarzenegger and Democratic lawmakers are disagreeing over how to repay public schools. Democrats want legislation to guarantee money for schools but Schwarzenegger believes the change requires voter approval.

http://www.newsmax.com/us/us_california ... 36773.html