Schwarzenegger warns of layoffs if furloughs fail.

Gov. Arnold Schwarzenegger is warning state employees he will start issuing layoff notices if a court doesn’t let him force workers to take two unpaid days off a month — an action the state’s public employee unions argue he doesn’t have the authority to take.

A judge was scheduled to hear arguments Thursday on a lawsuit filed by state employee unions over Schwarzenegger’s furlough plan, which he estimates will save the state $1.4 billion this fiscal year.

Source: San Francisco Chronicle