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With California a day away from issuing IOUs instead of paying its bills, Gov. Schwarzenegger and the legislature remain at odds over how to close a now $26.3 billion deficit. Schwarzenegger on Thursday ordered a third unpaid furlough day for 235,000 state employees. With its $1.7 trillion economy sputtering and 11.5% unemployment surging, California's difficulty in balancing its budget could affect the national recovery...

Author: /time Magazine | Title: How California's Fiscal Woes Began: A Crisis 30 Years in the Making | 7/1/2009 | See Source »

...explosives, and a training video of how to construct suicide-bomb belts. In Sarajevo I met Bajro Ikanovic, 32, one of the four men arrested for plotting terrorist attacks as a result of that raid. Sitting in a café during a four-day furlough from prison, he told me he has converted several young men to militant Islam, and has pressed them to consider fighting to defend their religion. "Muslims who do not preach jihad are cowards, or just too comfortable with their lives," he says. Asked if young militants should fight in the Afghanistan or Iraq wars...

Author: /time Magazine | Title: Bosnia's Islamic Revival | 6/15/2009 | See Source »

...Second, Harvard should ask its faculty to take temporary pay reductions—perhaps through furlough days—to bring their salaries in line with those of our peer institutions. This academic year, Harvard paid its full professors an average of $192,600, according to the American Association of University Professors. By contrast, Stanford paid its professors $181,900, Princeton paid $180,300, and Yale paid $174,700. Asking our professors to accept the same salaries as their counterparts at Stanford seems fair, especially considering that, just two years ago, the average salary at Harvard...

Author: By Paras D. Bhayani | Title: Budget Cutting for Dummies | 4/18/2009 | See Source »

...raising the car-license fee (something Schwarzenegger had campaigned against in 2003). Cuts include $8.6 billion from K-12 classrooms, which probably would force schools to pink-slip teachers and increase classroom sizes; a 10% cut to the university system; a continuation of the two-days-a-month furlough of state workers that recently closed state offices, including the Department of Motor Vehicles; and several billion in cuts to social welfare and programs for the elderly, sick and poor. Republican leaders insisted on a $1 billion tax break for large corporations, believing it will encourage companies to expand their work...

Author: /time Magazine | Title: California: One Vote Short of Averting Catastrophe | 2/18/2009 | See Source »

Doty isn't immune to anxiety. In the coming weeks, he's set to take a one-week furlough himself. And many of the jobs at his plant are bound for Texas, a state with comparatively relaxed labor laws and weaker unions...

Author: /time Magazine | Title: Caterpillar Layoffs: How They're Playing in Peoria | 1/29/2009 | See Source »

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