Here's a news flash:
Beginning February 6, California state offices will close the first and third Fridays of each month. I realize we have a $40 billion-dollar deficit in California, but how are state workers going to survive this? It's estimated that state workers' income will shrink by 10%. Most people already spend more than they earn, unfortunately, so I expect this maneuver by Schwarzeneggger's administration will cause chaos throughout the state.
Not to mention, most people shudder to even think about going to the DMV.
Some state workers may end up having to sell their homes. Others may be unable to buy a home. This will dramatically affect home sales in Sacramento and surrounding communities as I suspect more state workers live here than anywhere else in California.
State workers who live in Sacramento should check the value of their homes. If it the market value is less than the assessed value, you might want to consider applying for a decline in value reassessment. You may be able to save yourself a $100 or so a month. It might not be enough to cover the drop in salary, but it's a start. Of course, it's also not going to put more money in the state coffers, but what else can a state worker do? Take a part-time job?
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
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Elizabeth, from a state budget perspective this can make sense to save money. Better for the worker to have some cut in hours vs. no job. Now if it is not paying their bills, you are absolutely right, they are stuck. Keep us posted as this story develops if it turns into hardship for your area homeowners.
Georgia state workers are having a furlough day as well... only in my opinion it's much worse. My husband will actually still have to go to work and do his job, but just won't get paid for that day. Now that stinks. Here they expect it to last 4 to 6 months.
Wow, Tammy, sounds like Georgia doesn't have a union for its state workers.
Wow and I though that ours had it bad in Maryland. They had to take the day after XMAS off and the day after New Years with no pay. And if they make over $40,000 up to $60,000 they have to take off an additional 2 days with no pay before June 30, 2009. And if they make over $60,000 they have to take off 4 more days with no pay before June 30, 2009. But that really sux in CA, they must take off 24 days then (2 days each month). That is a whole month of work, GEEZ!!!!
Elizabeth,
If you listen to the national news you would think that there is a mass exidus fron California.....and once again I believe it is way overblown.
California State employees have always been overpaid. I think the DMV should close down every Friday, along with the Welfare Dept., Unemployment Office, Children's Services, and many more. We don't need all these wasteful organizations five days a week. Unions, we definately don't need any unions. That's a short word for a "middle man." This liberal lifestyle is exactly what got California in this mess. Instead of reversing their wasteful liberal policies, they want to tax my toilet paper, and everything else that I'm fond of.