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(By Maria Avila -- Associated Press)

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Saturday, August 2, 2008; Page A02

SCHWARZENEGGER LAYOFFS CHALLENGED

California's largest state-employee union sought a temporary restraining order to block Gov. Arnold Schwarzenegger (R) from laying off more than 10,000 seasonal, contract and part-time workers. The Service Employees International Union says Schwarzenegger is overstepping his authority.

SOURCE: Associated Press

IN FACT Schwarzenegger said the layoffs are needed to avoid a financial crisis until California's cash-strapped government passes a budget.