A Survey of California Furlough Lawsuits

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The current economic crisis is forcing states to adopt creative means of balancing their budgets. California is again at the vanguard. The state has raised taxes, issued IOUs, and made deep budget cuts in numerous aspects of state government. Those efforts, however, have not been enough to bring the budget into balance. As a result, Governor Arnold Schwarzenegger acted on his own authority to furlough state workers in an effort to save money. The Governor’s furlough decisions have resulted in the filing of numerous lawsuits, which are being resolved in conflicting ways by the California trial courts.

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