SACRAMENTO, Calif. – California Gov. Arnold Schwarzenegger's required state employees to take two unpaid days off each month next year.
The requirement is an attempt to corral a runaway state budget deficit that is expected to reach $42 billion by 2010.
The Golden 1 Credit Union President/CEO Teresa Halleck said the move will definitely impact her members, but she doesn't expect a big financial impact on her $7 billion credit union.
Recommended For You
"When you consider how many work days there are in a month, when you take away two, that's almost a 10% pay cut," Halleck said. "So, we do expect some impact, but not a huge one, because our community charter diversified our membership beyond state employees."
Still, The Golden 1 counts 100,000 state employees among its members, and Halleck said she anticipates modifying some loan terms to accommodate shrunken paychecks.
Surprisingly, though, state employees weren't shocked to hear the news.
"The legislature has been discussing their budget problems for quite some time, and everyone expected they would be making budget cuts," she said. "It's bad news, but not shocking."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
