Shock SurpriseGov. Arnold Schwarzenegger on Tuesday signed an executive order freezing state hiring and halting nonessential service contracts -- a move he said could save the cash-strapped state $100 million by June 30.
Schwarzenegger issued the order on the heels of a $2 billion midyear budget reduction to deal with the state's projected $14.5 billion deficit. The governor also urged the Legislature to immediately begin working on more cuts for the 2008-09 fiscal year, which begins July 1. Story.
Understand $100 million is nothing. It will probably cost more to institute a hiring freeze than the $100m projected savings. The implosion stays on schedule.