We just went through a big flap here in Louisiana on this very issue.
http://lincolnparishnewsonline.wordpress.com/2010/05/21/sally-re-hired-herself/
Sally Re-hired Herself!
http://lincolnparishnewsonline.wordpress.com/category/sally-clausen/
I did like the last part of the first story:
Some of our earliest memories of news and political events was the 1959 mental breakdown of then Gov. Earl Long and the resultant national publicity it brought to our state. Only in Louisiana could a governor run the state from a mental hospital. It appears things have changed little since 1959.