If you enjoy the content at iBankCoin, please follow us on TwitterLOS ANGELES (Reuters) – California, which is on the brink of running out of cash, will notify 20,000 state workers on Tuesday their jobs may be eliminated, a spokesman for Governor Arnold Schwarzenegger said on Monday.
The announcement came a day after California lawmakers narrowly failed to pass a $40 billion budget that would have plugged the state’s deficit with a mix of tax hikes and spending cuts.
“In the absence of a budget, the governor has a responsibility to realize state savings any way he can,” said Aaron McLear, a spokesman for the Republican governor. “This is unfortunately a necessary decision.”
The layoff notices will affect about 20 percent of state workers, McLear said, adding the cuts would extend to every part of state government.