California High Court Upholds Furlough Plan

Originally published October 4, 2010

By Ian Sherr

SAN FRANCISCO—California’s top court ruled Monday the state has the authority to furlough state workers, potentially clearing one more hurdle to the eventual passage of California’s budget.

In a unanimous decision, the Supreme Court of California ruled the state’s 2010 budget, passed in 2009, gave Gov. Arnold Schwarzenegger authority to furlough state workers being paid under that budget. The ruling doesn’t directly address furloughs recently enacted by the governor. California is currently operating without a budget.

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(Published Oct. 4, 2010, on Dow Jones Newswires and