Davis Imposes Hiring Freeze, Orders $150M in Budget Cuts
To address a "looming" budget shortfall -- now projected to reach $13 billion -- Gov. Gray Davis (D) at a cabinet meeting yesterday imposed a statewide hiring freeze and ordered cuts of at least $150 million from state operations for the fiscal year ending June 30, the San Francisco Chronicle reports (Lucas, San Francisco Chronicle, 10/24). Exempt from the hiring freeze are about one-quarter of the state's positions, including public health positions in the Department of Health Services. In addition, the freeze does not apply to workers at hospitals and health care facilities (Hill, Sacramento Bee, 10/24). The $150 million budget cuts are in addition to the 15% across-the-board cut for FY 2002-2003 Davis announced earlier this month. Government revenues are running $1 billion below projections since May. Davis officials did not specify how much the new cost-cutting measures will save the state (Tamaki, Los Angeles Times, 10/24).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.