California losing money over furloughed disability workers
April 2nd, 2009From the San Jose Mercury News:
Seeking to save money, California Gov. Arnold Schwarzenegger has ordered that all state employees stay home one day each month without pay. But by furloughing the federally funded workers who review disability claims, he’s costing California millions of dollars.
Sending those employees home one day a month means the state will forgo about $10 million – or 5 percent of the agency’s $210 million annual budget – from Washington, without saving state government any money. Meanwhile, it’s taking the agency longer to process claims, delaying disability benefits at a time when such requests are soaring.
“There really is no reason to do this, it’s a no-brainer,” said Pete Spencer, the regional commissioner for the U.S. Social Security Administration, which oversees the disability claims program.

