A California appeals court has upheld a previous ruling barring Governor Schwarzenegger from instituting mandatory furloughs for 150,000 state workers. The Governor had argued that the cuts were necessary because of the lack of a budget for California. Unions applauded the decision, saying that the Governor should not be able to take away pay from workers who have done nothing wrong. Another hearing is scheduled for September 13. The administration plans to appeal the ruling to the California Supreme Court.
See "Rejection of California state worker furloughs is upheld", Shane Goldmacher, Los Angeles Times, August 12, 2010