Two unions have sued California Governor Arnold Schwarzenegger over his executive order requiring 230,000 state employees to take 2 days of unpaid leave per month. However, the unions contend that only the legislature can authorize furloughs. Schwarzenegger is meeting with Legislature members to try and work out a deal whereby pay cuts or furloughs are used to cut expenses and certain taxes are raised to increase revenue. The State Controller has said that without drastic measures California will not be able to make payroll as soon as February.
See "Unions sue Schwarzenegger over mandatory days off", Jordan Rau, Los Angeles Times, December 22, 2008