After months and months of publicly insisting furloughs would save the state millions, Schwarzenegger admits that thinking was....wrong.

Gov. Schwarzenegger's private lawyers admitted yesterday in court papers that more than 1,000 workers at five state agencies were furloughed, despite achieving no economic gains for the state - a clear abuse of power. More at www.seiu1000.org.

As kids, we associated "back to school" with a fresh start -- a new classroom, new teachers, new books and school supplies and maybe even a *snazzy* new outfit your Mom helped you pick out.

From the opposite end of the spectrum, the 2009 school year holds much different implications for public school staff employees in Los Angeles. LA and many other districts in California and across the U.S. are dealing with searing budget cuts, furlough days, crowded classrooms and worst of all, layoffs.

In an LA Sentinel op-ed, SEIU Local 99's Executive Director Bill Lloyd considers the predicament of Bell High School night custodian Theresa Aguilar, who is facing a situation all too familiar to the thousand custodial, cafeteria, playground, and other essential classified positions were cut over the summer.

A new study by the California state Senate says that furloughs are "costing the state money and further hurting the economy" and Senate President pro Tempore Darrell Steinberg called for immediate passage of the SEIU Local 1000 contract contract bill, AB 88. In a letter to Gov. Arnold Schwarzenegger, Steinberg wrote the current furlough policy has become a 'penny saved, a dollar lost' approach that can be corrected immediately. "A 5 percent pay cut is a sacrifice for a state employee; a 15 percent cut is punishment."

It's just only about federally-paid workers--the Schwarzenegger administration lost a court battle last week over furloughs for workers at the state's workers' compensation agency, which may include back pay with interest for furlough days the roughly 6,000 workers have already had.

Yesterday, a Superior Court judge issued a tentative ruling that State Compensation Insurance Fund employees are exempt from Governor Schwarzenegger's furloughs. The lawsuit affects over 6,000 clerical and professional SEIU Local 1000 workers who work for the fund, which provides worker's compensation insurance to employers. (Click here to read the tentative ruling)

Local 1000 launched a media blitz campaign last week (including this ad) aimed directly at Gov. Schwarzenegger's legacy of broken promises and failed leadership. Listen to their radio ad here.

That same day, the state's Department of Finance admitted at a state Senate hearing that furloughs at the Franchise Tax Board and Board of Equalization will cost the state $350 million in uncollected taxes. At the hearing, FTB tax technician Renee Lee testified that she is now losing her Sacramento home of 18 years because of the 14 percent pay cut from furloughs--after 30 years of civil service. In a comment that widely picked up by media outlets, Lee said at the hearing, "I was living the American dream. I'm living a nightmare now."

If the decision becomes final and is upheld, the workers will be exempt from the Governor's furloughs and will receive back pay with interest for furlough days they have already had. Local 1000 President Yvonne Walker called the ruling "another crack in the governor's illegal furlough scheme." The union has filed a total of five lawsuits challenging the Governor's state employee furloughs three times a month. Read more at SF Gate.

In spite of the fact that months of debate between CA lawmakers on how to resolve the state's $26 billion budget deficit may be finally coming to an end, there can be no cause for celebration when the 'solution' does not reflect the priorities of a vast majority of California voters. Commenting on the staggering cuts agreed upon by lawmakers late Monday night, SEIU Local 1000 President Yvonne Walker said this:

"There may be a budget deal, but there's no budget solution."

Walker continued, saying "The governor's refusal to close corporate tax loopholes, eliminate waste in private vendor contracts and make big tobacco and big oil pay their fair share, is another series of bad decisions."

"Making state employees pay what amounts to a 15 percent furlough tax is just plain wrong ... We'll fight in the courts, in the Legislature and in the workplace to have it cut back," Walker said.

The California State Council of the SEIU also released a statement from State Council President Kristy Sermersheim, who declared "Big oil, big tobacco, and the alcohol lobby" the only real winners in this budget deal.

"Approximately 80,000 seniors and people with disabilities will be put at risk of leaving their homes for institutions. Nearly half a million children will lose healthcare. The deal will eliminate tens of thousands of jobs, making our terrible economy even worse. Local communities, which have relied on a responsible and balanced approach to their budget challenges, will now be hit with deep cuts to basic public safety and other services. And millions of school children will have an education inferior to what they could have."

"Governor, we've sacrificed. And we've now reached our limit. We cannot, and will not, allow you to use us as pawns in your political power game," writes SEIU Local 1000 President Yvonne Walker in a letter to Gov. Arnold Schwarzenegger concerning the California union's contract deal and latest budget proposal. The deal -- which includes some concessions -- is now stalled by Republicans in the legislature.

The Governor's proposal seeks to pile on an additional 5 percent pay reduction or fourth furloughed work day for more than 230,000 state workers. The three furlough days per month state workers are already faced with amounts to a roughly 14 percent loss in pay for state workers. Add on 5 percent, and CA's state workers would lose nearly 20 percent of their income.

The letter Local 1000 President Walker delivered to the Governor on Friday afternoon informs Schwarzenegger that the state workers will not take the Governor's threats lying down. "When we negotiated one furlough day monthly, a wage freeze, and other cost saving changes, we were standing up for state services. While we will continue to battle for quality public services, we are now standing up for ourselves as well. We will fight for a common sense budget." (Read President Walker's letter to the governor here).

Last week, Local 1000's Council voted unanimously authorizing the union's officers to seek member support for concerted actions up to and including a strike to protect our members' pay, benefits and job security.

As the City of Los Angeles faces an unprecedented budget crisis, nearly 500 city engineers have voted to unite in SEIU 721 to have a stronger voice at work and unite with the 22,000 other City employees in the Coalition of LA City Unions, of which SEIU 721 is a member. The LA City Council also voted on Friday by a vote of 14-0 to approve a landmark agreement between the City and the Coalition of LA City Unions that will avert layoffs and furloughs and prevent major service reductions.

Another group of 1,500 City of Los Angeles professional employees will have the choice to vote for SEIU in a run-off election, to be scheduled at a later date. Read more here or visit www.UnitedforLA.org.