Arnold threatens layoffs

Gov. Arnold Schwarzenegger's administration warned Tuesday that it will begin proceedings to lay off thousands of state workers if the governor and legislative leaders do not reach a budget deal by Friday. Mercury News.

Notices would go to employees with the least seniority in the state's corrections and health and human services departments, as well as in other agencies that receive money from the state's general fund, said Schwarzenegger's communications director, Matt David.

The move is part of the governor's order to cut 10 percent from the government payroll as California faces a $42 billion deficit through June 2