Legislators OK exemptions to furloughs for state workers

California legislators voted Monday to exempt about 35% of state employees from having to take three days off each month without pay, an order imposed on government workers last year to help close the budget deficit.

Senate President Pro Tem Darrell Steinberg (D-Sacramento), whose district is heavily populated with state employees, proposed the exceptions, which Gov. Arnold Schwarzenegger is expected to veto.

“The governor cannot support any measure that would limit the state’s ability to respond to a fiscal crisis,” Schwarzenegger spokesman Aaron McLear said.

Democrats say cutting salaries for the 79,850 employees covered by Steinberg’s bill has done nothing to resolve the budget crisis because they are paid with federal dollars or through license and usage fees, and not from the deficit-ravaged general fund.

California’s budget shortfall is estimated at $20 billion.

Among those who would be exempt are workers at the California State Board of Equalization and the Franchise Tax Board -- the state’s tax collectors.

Forcing those workers to take unpaid holidays saves the state $65 million in salaries during the current budget year but prevents the collection of $465 million in unpaid taxes, Steinberg said.

“Overall, there are fewer hours and resources to conduct the audits and other enforcement measures that bring money to the state,” Steinberg said.

The furloughs are unpopular with politically influential state employee unions and have generated 27 lawsuits as workers battle with the Schwarzenegger administration over the forced time off.

Both sides agree that the legality of the furloughs -- which cut most salaries by about 14% -- will probably be decided by the state Supreme Court.

Schwarzenegger has eliminated furloughs from his proposed budget for the fiscal year that begins July 1, replacing them with a 5% across-the-board pay cut; a 5% increase in what state employees must contribute to their pensions; and a 5% payroll cut to be reached through staff reductions and other measures.

jack.dolan@latimes.com