Schwarzenegger orders 2,000 more state jobs cut California's fiscal crisis

Governor Arnold Schwarzenegger presented his latest revised versions of the California State Budget Thursday May 14, 2009 during a press conference at the State Capital in Sacramento. Governor Arnold Schwarzenegger presented his latest revised versions of the California State Budget Thursday May 14, 2009 during a press conference at the State Capital in Sacramento. Photo: Lance Iversen, The Chronicle Photo: Lance Iversen, The Chronicle Image 1 of / 1 Caption Close Schwarzenegger orders 2,000 more state jobs cut 1 / 1 Back to Gallery

Gov. Arnold Schwarzenegger has ordered department heads to eliminate 2,000 jobs on top of the 5,000 positions he wants to cut as part of his budget solution, his officials said Tuesday.

Although Schwarzenegger and legislative leaders remain far apart in how to close the state's $26.3 billion shortfall, the governor's latest job-slashing order is aimed at helping prepare for inevitable cuts in state services, said Lynelle Jolley, a spokeswoman for the state Department of Personnel Administration.

Schwarzenegger ordered the initial 5,000 job cuts in May as part of his budget proposal to close the state's huge deficit in its general fund. There are about 230,000 state employees.

Jolley said 4,600 layoff notices have been sent. The other 400 positions were vacant and will be eliminated.

Laid-off workers will be able to apply for other state jobs funded by special fees. For example, vehicle registration fees fund DMV services.

By Monday, the chiefs of every department must report on their number of vacant positions. Those jobs will also be eliminated before any layoff notices are sent. Jolley said she did not know how much money the cuts would save.

Starting this month, state workers are being forced to take three unpaid days off a month, or about a 14 percent pay cut. They had been taking two furlough days a month since February. The governor has proposed an additional 5 percent pay cut, which would require legislative approval.

A representative for the largest state worker union criticized the governor's proposed job cuts.

The threat is a "bargaining ploy to get a budget agreement that he likes," said Jim Zamora, a spokesman for the 90,000-member Service Employees International Union Local 1000.

Budget negotiations resumed Tuesday afternoon between Schwarzenegger and the state's top four lawmakers after taking a day off to give budget experts time to crunch more numbers. The biggest item on Tuesday's agenda was how to fund K-12 schools and community colleges.

The leaders met until just before midnight Tuesday and planned to resume their talks Wednesday afternoon.