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Governor Orders Hiring Freeze

Sacramento, CA — Gov. Schwarzenegger has ordered a state hiring freeze and payroll cuts as part of a belt-tightening move to conserve cash as California struggles to deal with a $42 billion budget deficit.

The governor issued an executive order that requires state agencies to reduce payroll by 10 percent, which could lead to potentially massive layoffs. State employee union officials say they are considering filing a lawsuit to prevent job losses.