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Schwarzenegger Cuts California State Workers' Pay to Minimum Wage

5 years ago
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A California appeals court Friday upheld Gov. Arnold Schwarzenegger's decision to reduce some state workers' pay to the federal minimum wage until a budget is passed, but the official in charge of paychecks said he won't comply with the order.

The ruling by the 3rd District Court of Appeals comes a day after the governor ordered the pay of nearly 200,000 state employees to be reduced to $7.25 an hour for the month of July, The Los Angeles Times reported.

The court said the governor has "the authority to direct the Controller to defer salary payments...due to a budget impasse."

State Controller John Chiang, who control's California's checkbook, said Thursday he would defy Schwarzenegger's order. Chiang did not comment on the court decision Friday.

Under the governor's order, hourly workers would get minimum wage and managers who work on salary would have their pay reduced to $455 a week.

The state's Department of Personnel Administration said other employees who are not federally protected by minimum wage requirements, such as some of the state's doctors and lawyers, will go without pay for the month, according to Politico.

California's 2010-2011 fiscal year began Thursday with no budget in place and with the state facing an enormous deficit.

"We need to get a budget quickly. The longer we go without a budget, the longer state workers will be faced with minimum wage, furloughs and layoffs," Schwarzenegger's spokesman Aaron McLear told Politico. "That's why it is so important for the legislature to get us a budget as quickly a possibly. If we get a budget this all goes away."

Filed Under: Economy, Governors, Budget

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I'm afraid there may be only one way to show the California bleeding heart liberals in state government the way to responsible fiscal governance, cut them off.
No federal bail outs ...none.... sink or swim..You made these obscene giveaways YOU DEAL WITH THEM!! States that run their finances with proper balance of spending and collection funding SHOULD NOT be EXPECTED TO BAIL YOU OUT!!!
You are doing such a bad job now ....why would it get any better if you are bailed out?
Now I will agree IF the Feds crammed down your throats something you didn't want ..then the feds need to step up...It is up to the other states to stop the Feds
Because you will be on your own if this country doesn't stop what you are already doing!!

July 04 2010 at 1:30 PM Report abuse +2 rate up rate down Reply

I do not like to stereotype,BUT, I understand Arnold's mind. He thinks as a German. When things get out of hand, they use discipline to fix it. One of the problems... we don't all think alike. Some States, like Cal., need an austarity program. A budget is a reflection of one. We have primed the financial pump and things have started to move forward. Sure, there is going to be a slowing. When a baby takes his or her first steps they pause. At this point we watch with anticipation to see if they will continue to move forward. I think that we should do all we can to promote business now,let the energy companies employ.View from the right. At the same time, stimulate a 100% job program that will channel water from antarctica to the midwest or something on that line. Also, public transportation powered by a centalized power source. Tides, wind, solar, nuclear etc. No work, no pay !!! And the jobs must be for Americans! Many won't want them and many e-legal's will.This will keep the pumps primed and America will return. We are very fortunate to live here. Our deversification, is a strength. In Europe, Germany is following it's nature. Because it is the strength of Europe it should be priming the pump. Spain, Portugal, Greece etc. should be using austerity programs! I love being an observer!

July 04 2010 at 10:55 AM Report abuse -1 rate up rate down Reply

If Chiang refuses to follow the directives of the state controling office then he should be fired for insubordination. End of story. If he refuses to follow a court order then he should be locked up for contempt of court.

July 04 2010 at 10:39 AM Report abuse +2 rate up rate down Reply

You asked who can live on $15,000.00 a year. Ask every Senior Citizen and they will say --- I do. We pay the same for groceries, gasoline and repairs as anyone making a million a year and we are doing it with no cost of living raise for two years while everyone in the White House gives themselves out landish raises. The poor get poorer while the rich get richer. This month after paying my rent and all my utilities I have $121.00 left over for medicine,groceries and gasoline. All of the big wigs should try living on what a Senior Citizen lives on every month and see how it goes for them.

July 04 2010 at 3:20 AM Report abuse +6 rate up rate down Reply

I'm sure there's a platoon of critics that will weigh in with damnation for California's visible target, the Governor. But, the truth is Legislative representtives in California and a whole lot of other states have ignored the reality of fiscal responsibility for the last few decades. They've been extending self-serving entitlement programs and employee pay schedules (and, probably benefits to themselves) like the revenue source would never end.
Well, they've finally got caught up in the whirlpool they created. So, when you have a Governor who's willing to try some new approach to shake the tree of those on the sidelines crying "Who Me?", let's give the idea some room to grow. Sounds like the Court did, why not the rest of us?

July 04 2010 at 12:24 AM Report abuse +2 rate up rate down Reply

California was the most productive State in the Union 35 years ago. Now its changed into a $20 billion deficit state....How did they happen? a perfect storm between "walfare system" and "shrinking tax base" has turn California dreaming into a nightmare...Politicians like Jerry Brown, Barbra Boxer never had one honest day of work wants to be run again. Business has been leaving California for business friendly states while big government expenses ballooned. Its time California follow its neighbors like Nevada and Arizona, tighten up the belt,cut wastful expenses and eliminate walfare fraud. This will save California easily serveral hundred millions a year!

July 03 2010 at 10:32 PM Report abuse +2 rate up rate down Reply

Might be to late for californis, as there debt ratio is staggering..A sanctuary state for many years who has lost a lot of its tax-base...companies and upper income residents leaving the state in droves.. with most moving to florida...And my former state will soon be in the same condition as they like to bring there politics with them.. Another prime example of democratic politians controlling the state..right, arnold is a merely a republicn in name only..kinda sad.. watching this country decay more and more...almost on a daily basis..One of two states advertising for new residents..michigan being the latter..Oh...and bring your check-books please..

July 03 2010 at 9:44 PM Report abuse +4 rate up rate down Reply

Arnold took on a mess to fix, and made it worse. Obama went into a mess, and is still making a mess.

July 03 2010 at 9:17 PM Report abuse +3 rate up rate down Reply

Nytshde323.................Unreal.............a month or any is to much! Why should the poeople suffer because they can't handle the budget? So unfair, we get cut, chopped and raised more then anyone. Anyone who is for it, is a Lib or a Liar! Or maybe trying to be self-righteous!

July 03 2010 at 9:14 PM Report abuse -3 rate up rate down Reply

Why would you expect anything more from a state that cuts off water to one of the most productive farming areas and sacrifice the livelihoods of thousands to save a fish that's not even good for bait....Try placing your priorities in order first
An autistic EPA and ECO obtuse haven't helped your plight.

July 03 2010 at 8:40 PM Report abuse +5 rate up rate down Reply

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