Schwarzenegger Slashes Wages
Amid a state budget standoff, California Gov. Arnold Schwarzenegger has ordered that some 200,000 state workers receive only the federal minimum wage. That's a $1.45-per-hour cut from California's minimum wage. But the man who issues the checks, the state controller, says he will refuse to follow the order and, if necessary, will borrow funds to maintain present pay rates.
Amid a state budget standoff, California Gov. Arnold Schwarzenegger has ordered that some 200,000 state workers receive only the federal minimum wage. That’s a $1.45-per-hour cut from California’s minimum wage. But the man who issues the checks, the state controller, says he will refuse to follow the order and, if necessary, will borrow funds to maintain present pay rates.
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“Today I am exercising my executive authority to avoid a full-blown crisis and keep our state moving forward,” Schwarzenegger said. “This is not an action I take lightly.”
The moves could save hundreds of millions of dollars a month, but whether full-time employees’ paychecks will be cut is in doubt because the state controller, who cuts the checks, has said he will not comply with it.
Lawmakers have yet to agree on a spending plan a month after the state’s fiscal year began, leaving California without the ability to pay for contractors, the higher education system and legislative employees.
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