This policy brief examines the impact of furloughs on California state workers, which were implemented as part of the state's budget crisis. The furloughs, which require workers to take two to three days off per month, are estimated to result in a 13.8% reduction in salary. The authors find that the furloughs are an inefficient method of addressing the budget deficit, and estimate that they will result in $2.01 billion in lost wages and benefits for 193,000 workers over the course of the year. Accounting for the impact on workers who are not on the General Fund, lost revenue, and increased costs due to the furlough program, the net savings to the General Fund for FY 09-10 is estimated to be just $738 million. The authors also note that the furloughs will result in a loss of $503 million over the subsequent years, leaving a net savings of $236 million to the General Fund. If all workers were subject to one rather than three furlough days, the savings to the state in FY 09-10 would be $341 million.
