Schwarzenegger orders min wage for state workers

[marshac]

It's like watching the titanic sink... very slowly...

SACRAMENTO, Calif. (AP) -- Gov. Arnold Schwarzenegger on Thursday ordered about 200,000 state workers to be paid the federal minimum wage this month because the state Legislature has not passed a budget.

Department of Personnel Administration Director Debbie Endsley sent the order in a letter to the state controller, who refused a similar order two years ago and may try to do the same thing this time. Most state employees will be paid the federal minimum of $7.25 per hour for the July pay period.

Schwarzenegger spokesman Aaron McLear said the change should be reflected in state employees' next paycheck. Workers will be paid in full retroactively once a budget is passed.

The Legislature has failed to take steps to close California's $19 billion budget deficit, even as the new fiscal year began Thursday.

Schwarzenegger's order does not affect a little more than 30,000 workers, including California Highway Patrol officers, who are in unions that recently negotiated new contracts with the administration. Those contracts included pay cuts and pension reforms that will save the state money.

Asked whether the Republican governor was sending a message to the unions that have not yet signed new contracts, McLear said no.

"We're sending a message to the controller to follow the law," he said.

Schwarzenegger made a similar order two years ago, but it never took affect because state Controller John Chiang refused to comply. The courts later sided with Schwarzenegger, but the matter is on appeal.

Jacob Roper, deputy press secretary for the controller, said Thursday that Chiang does not intend to follow the order, in part because the state's computerized payroll system cannot handle the change.

"This is uncharted waters here," Roper said. "No city, county or state has ever taken this action before."

Roper said the action could cost the state billions of dollars because the action would violate employment law.

Salaried managers who are not paid on an hourly basis would see their pay cut to $455 per week.

[talisyn]

I think everyone should have to work minimum wage at least once in their adult life. It would be a great character-building exercise

[Just_A_Guy]

Silliness on all sides here. I have no love lost for California state employees. But on the other side: I grew up in the state, and it seemed like every summer we heard news reports saying "we're now x number of days beyond the deadline, with no budget". Frequently we wouldn't get budgets until late July (in 2007 they passed a budget in late August, for crying out loud).

Why is Arnie doing this now? Is he hoping to capitalize on the Tea Party movement to score political points?

[bytor2112]

I think everyone should have to work minimum wage at least once in their adult life. It would be a great character-building exercise

So they can understand what it feels like to have not accomplished anything meaningful in life and be left with no choice but to work a dead end job where the government forces the employer to pay the worker more than the worker probably deserves?

[Hemidakota]

It's like watching the titanic sink... very slowly...

I suspect the Gubernator has cut his own pay - he has money...now for others of the same office, they should receive the same pay scale.

I agree though, Calif is sinking...just as fast as the Titanic did. It is matter of time to declare the obvious - bankruptcy. I wonder when the feds will do the same?

[pam]

Sad in a way. Cost of living in California is so high and would be hard to support a family on $455 a week.

[Voyager]

I suspect the Gubernator has cut his own pay - he has money...now for others of the same office, they should receive the same pay scale.

I agree though, Calif is sinking...just as fast as the Titanic did. It is matter of time to declare the obvious - bankruptcy. I wonder when the feds will do the same?

Any idea when interest on the national debt will exceede the level of money taken in by taxes?

[Hemidakota]

We are already beyond this mark. What is scary. the debt is approaching the GNP mark. For me, we have already exceeded it.

[marshac]

Any idea when interest on the national debt will exceede the level of money taken in by taxes?

[Dr T]

I suspect the Gubernator has cut his own pay - he has money...now for others of the same office, they should receive the same pay scale.

He actually turned down the $275,000 pay that job gets when he first started that job Hemi. No what do you have to say to that snide comment?

[BenRaines]

I say that there will be State employees that are underpaid with this and some who are overpaid as a result of governor's change.

He is only doing what the law requires. California State law requires that if there is no budget all state employees are to be reduced to minimum wage. Last I heard it is a tug of war between workers unions and the state for concessions during tough economic times. Can't we all just cooperate and get along?

Ben Raines

[pam]

One thing not yet mentioned that is mentioned in this article: The workers will get their missed wages when the budget is approved. This whole thing is based on the fact that a budget has not been enacted. Last paragraph states this.

Schwarzenegger orders minimum wage for California state workers - CNN.com

Doesn't sound to me like it is a permanent thing. Only temporary.