Apr 16 2009
California is losing federal money
With the budget problems that California has, you would think that the Legislature and the Governor would want to capture every little bit of money from the feds that they can.
They don’t.
In the furlough order applies to SCIF staff - the staff who process federal disability claims, and are paid entirely with federal money. They don’t use state general fund, or any state funds, to pay for these people. Instead, federal funds make up the entirety of their salary. Federal funds also are brought to California by their work. When they don’t process claims, the state doesn’t get federal money.
By furloughing these people, the state loses about $10 million in federal funds (the SCIF budget is $210 million). Instead of saving the state money - which is the goal of the furlough program - this furlough is costing the state money.
The Governor said that all employees will take the furlough in the interests of fairness. I am all for fairness. Then let’s reform the tax system to make if fair. Why not make people a share of their medical costs (that’s fair too)? Why not pay teachers on the basis of skill rather than seniority? Those are all fair things. But they aren’t being done - only this one program, furloughs, is being done on the basis of fairness.
It is stupid to make policy and fiscal decisions based on fairness. You have to make them in the best interests of the people and the state. Losing out on $10 million in federal funds is not in the interest of the state.
Good thing these workers sued, and won, a case that says they don’t have to be furloughed.
