California plans more furloughs due to budget

State Controller John Chiang (CHUNG) said Gov. Arnold Schwarzenegger and lawmakers need to come up with a complete solution to the state's $24.3 billion deficit instead of making a political statement.

"Running the state off the cliff is no way to make a political point. I don't want shock and awe. I want permanent solutions," Chiang said.

Democrats this week proposed to cut and delay billions in spending to prevent the IOUs — without solving the whole shortfall. Republicans in the state Assembly voted for the package, but Senate Republicans rejected it and Schwarzenegger said he would veto it if it were approved.

On Friday, Schwarzenegger ordered more than 200,000 state workers to take a third furlough day each month if no deal is reached by the end of the month. The furloughs would save the state about $420 million, and would follow two-day-a-month furloughs implemented by the governor in December.