The California legislature's budget did not include provisions that would have allowed the Governor to furlough workers in the event that the state workers' unions did not agree to a 5% payroll reduction for the year. Workers have been furloughed for three days a month since 2009, around a 14% pay cut. Unions have agreed to pay more towards pension and health care costs, as well as giving up some paid holidays. Unions says that any more changes should come through negotiations. The Governor has not said whether he will accept or veto the budget.
See "California Public Employees Win Concessions in New Budget", Michael B. Marois and James Nash, Business Week, June 17, 2012