State argues in court for furloughs

Gov. Arnold Schwarzenegger's lawyer defended his furloughs of 7,900 state workers' compensation employees before a skeptical state appeals court Friday, saying a law that protects them from cutbacks leaves the governor free to reduce their workweeks.

The law covering employees of the State Compensation Insurance Fund is "a narrow limitation on the authority of the governor," attorney David Tyra told the First District Court of Appeal in San Francisco. He said the ban on staff cutbacks should be interpreted as prohibiting only layoffs and not unpaid furloughs.   Read more...