Home » Economy » Coronavirus prompts New Jersey and California to consider state worker furloughs like Michigan's
Coronavirus prompts New Jersey and California to consider state worker furloughs like Michigan's
Economist Mohamed El-Erian on the prospects of an economic rebound from COVID-19 crisis
Mohamed El-Erian, chief economic adviser at Allianz, joins Chris Wallace on ‘Fox News Sunday.’
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New Jersey and California are considering furloughs and reduced pay for state workers amid the coronavirus pandemic, while Michigan Gov. Gretchen Whitmer has already taken the plunge and says rolling furloughs for state employees will save the state $80 million after kicking in on Sunday.
“As we continue to combat COVID-19, it’s clear that we’re facing unprecedented challenges that will lead to serious budget implications for the state of Michigan,” Whitmer said in a statement on the decision that will impact 31,000 state employees.
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The tough choice comes as those states and others face big budget shortfalls — for example, New Jersey is facing a projected budget shortfall of $2.75 billion. That prompted state lawmakers to pass a bipartisan bill Thursday that would partially furlough state employees while supplementing their pay with enhanced federal unemployment benefits, NJ Spotlight reported.