Studies Show Furloughs Not Saving State - California Progress Report:
"Earlier this week, the Senate Office of Oversight and Outcomes released a report that concluded that the furlough savings was illusory at 24.7 facilities, specifically at state hospitals, prisons, and other 24/7 facilities that are under state operation. This finding by itself carries a considerable consequence, but amazingly it is not the only finding of its kind.
But another study done by UC Berkeley's Center for Labor Research and Education released on Thursday found that:
"Much of the savings from California state workers' three-day-a-month mandatory furlough will be offset by reduced revenue and increased costs to the state general fund in future years."
The Berkeley study analyzes the impact of furloughing state employees for three days a month, the equivalent loss of seven weeks of pay. The study concludes that the furlough will save the general fund only 12 cents for every dollar cut in wages.
Government agencies across the state have imposed furloughs as a means to reduce operating costs during the hardship. They range from cities to counties to the higher educational system. It is unclear just how much these findings are generalizable to other situations, but it seems these impacts ought to be examined.
"Earlier this week, the Senate Office of Oversight and Outcomes released a report that concluded that the furlough savings was illusory at 24.7 facilities, specifically at state hospitals, prisons, and other 24/7 facilities that are under state operation. This finding by itself carries a considerable consequence, but amazingly it is not the only finding of its kind.
But another study done by UC Berkeley's Center for Labor Research and Education released on Thursday found that:
"Much of the savings from California state workers' three-day-a-month mandatory furlough will be offset by reduced revenue and increased costs to the state general fund in future years."
The Berkeley study analyzes the impact of furloughing state employees for three days a month, the equivalent loss of seven weeks of pay. The study concludes that the furlough will save the general fund only 12 cents for every dollar cut in wages.
Government agencies across the state have imposed furloughs as a means to reduce operating costs during the hardship. They range from cities to counties to the higher educational system. It is unclear just how much these findings are generalizable to other situations, but it seems these impacts ought to be examined.
