Gov. Arnold Schwarzenegger signed the executive order this morning to layoff as many as 22,000 temporary state workers and temporarily cut the pay of as many as 200,000 permanent employees to the federal minimum wage of $6.55 an hour.
Speaking before a packed press conference at the Capitol, a chastened governor called the order the “the only solution” to getting out a cash crunch the state faces because the budget is now a month late.
State Controller John Chiang has said the move is unnecessary and has indicated he won’t do it, but the Department of Finance Director Mike Genest said the controller actually doesn’t think his computers can carry out the action. The governor, meanwhile, pledged to work with the controller, but didn’t rule out court action to force the Chiang’s hand.
Just as the governor’s press conference began, the controller’s office sent out a press release entitled “Chiang Rejects Governor’s Executive Order to Pay State Workers Minimum Wage” and in an accompanying letter to the governor Chiang explains the technical difficulties.
Fired temporary workers, which include retired employees and students, will work their last day today. The permanent employees won’t see their wages cut until the September pay period, which is at the beginning of the month. The governor’s order also prohibits overtime except for necessary public safety employees and imposes a hiring freeze.
Workers who see their pay cut would be reimbursed their full salaries after a budget is approved.
“This is not an action I take lightly,” Schwarzenegger said. But he said it’s been a month and a half since the state Legislature’s Constitutional deadline of June 15 to pass a state budget and “Because of this the state faces a looming cash crisis.
“The situation leaves me with no easy choices. Only choices with consequences. Consequences that will have a direct impact on families.”
Genest explained that the state is running precariously low on cash — it’s projected to have just $1.8 billion available come Sept. 1. But while the state could borrow, he and the governor are trying to avoid it because of the high associated costs and the message it would send to Wall Street. Instead, the strategy is to cut to take this action with the hope of buying just enough time to get a budget deal passed, although Genest conceded the costly borrowing may still be necessary if the budget impasse lags on.
The Legislature has been unable to pass a budget because Democrats and Republicans can’t agree on what to do with a more than $15 billion shortfall. Democrats have proposed raising taxes by more than $8 billion — although it’s unclear everyone in the party supports that. Republicans, meanwhile, want to see more cuts on top of the deep ones already proposed.
suckers!
been sucking off the public teat for too long. get ready to get a fair day’s pay for a fair day’s work!!
next, crack down on the county schlubs…
bpsqwerty YOU DON’T KNOW WHAT YOU ARE TAKING ABOUT. YOU DON’T THINK STATE WORKERS WORK. HELLO THEY WORK 8 TO 5 JOBS AND MONDAY THUR FRIDAY. PEOPLE THAT THINK STATE AND COUNTY WORKERS ARE LAZY AND DON’T WORK I DARE ANY OF YOU TO WORK A WEEK IN THEIR JOB AND SEE THE STUFF THEY HAVE TO DO AND THE PEOPLE THE HAVE TO DEAL WITH. IT’S NOT EASY. SO IF YOU HAVEN’T LIVE BEING A STATE WORKER OR COUNTY WORKER THEN KEEP YOUR MOUTH SHUT CUZ IF IT WASN’T FOR THEM A LOT OF THE REAL LAZY PEOPLE IN CALIFORNIA WOULDN’T HAVE WELFARE OR FOOD STAMP!
ya how come every time I go to the DMV one-half of the people that supposedly work there are on vacation and it takes an hour and a half to pick up PLATES? c’mon people you are not even trying. get a real job! anybody could do that good a job for $8 an hour (before Arnold’s paycut)
To “Stupid People need to Shut Up” - I see from your sentence structures and misspellings that you must be a State worker.
The Terminator
Why are they not ALSO cutting the pay of the legislators there the ones holding up the budget?
Wouldn’t California save alot of money if they didn’t give benefits to illegals?
and everyone thought it would be so “awesome” to have arnold as a govenor. He’s nothing more than speedo wearing ex-muscle dork who happend to marry into the kennedy family. I guess it didnt matter that his wife looks like the crypt keeper. Pshhhh Bring back Dukakas!
Just think everybody your next choice for Govenor will be Gavin Newsom OR Antonio Villaraigosa two really POOR leaders & choices…Kind of like our current presidential election?
WOW did anyone read John Chiang’s letter to Arnold?? It’s amazing and totally on point!! I say Jonn Chiang for Govenor!!
I registered an out-of-state trailer several years ago. It took me over 8 hours at the West Covina DMV. Yeaaaaaayyyyyyyyy…………GET RID OF ‘EM ALL!!!!!
arnold sucks: Don’t forget how well he speaks. Mr. Mush Mouth.
Geezus. I thought Gray Davis was bad (sigh). Ain’t the first or last time we’ve all been duped, eh?!!!!
Anyone directly affected by this? I’d like to hear your story.
terrible letter. blaming the ability to comply with the excutive order on an antiquated payroll system is pretty lame at best. what kind of system has the inability to adjust an employee’s hourly wages? frankly this is unbelievable. what he’s saying is their office is unwilling to do any additional legwork to keep track of any balance that arises between the earnings based on minimum wage and regular wages.
I work in finance and IT so I know a little bit about these things. do your job Chiang
**On vacation today, bpsqwerty? You say you “work,” but you seem to be doing nothing more than reading and responding to Register articles! Or is this your job? Yapping Republican talking points.
Cliff asks: “Why are they not ALSO cutting the pay of the legislators there the ones holding up the budget?” Because of the separation of powers, the governor can’t dock their pay. Their salaries and the salaries of their staff are withheld when the budget is late, but once a spending plan is signed, they’re reimbursed in full.
How rude, placing the burden of the deficit on the backs of state workers. How many reading this are willing to cut their pay to the state’s minimum and send the difference to the treasury? Anyone…
bpsqwerty and flop41 said exactly what my initial thoughts were…..High Five, guys!
People who can hook up a Linksys router at home like to call themselves IT guys, but no real IT guy would need a second job in finance. You know nothing of the Government payroll system so please don’t pretend you do. A persons salary is linked to their job title and step level. You would have to redo the Governments payroll system to remove that, and create new step levels for employees or completely remove the step levels\classification and create a new classification for the mandated hourly rate.
I’m a real IT guy who works in Government.
It’s about time that some of the surplus fat was cut.
Arnold is doing the right thing. It is an action to let people know how bad the situation is.
Good. Now the government workers are getting paid what they’re worth. Hope the gov makes the pay cut permanent. But we know this is only a symbolic move that will try to sway people to agree to massive tax increases. Don’t fall for it. It’s time to cut, cut, cut. More revenue than ever is pouring into the state government. 41% more than when Schwartzenegger took office! The problem is with SPENDING! Lay off and cut budgets. Let the public sector feel the pain for once. Get rid of 30% of the public teachers. Enrollment is way down. We don’t need the extra state employees on the books. Dump the riff-raff.
The Gov. finally has learned from the CEO of private sectors
To all you idiots that are busting on the regular state and local government workers, where do you think the real cash drain is from??? How about the welfare slugs…maybe the illegal aliens…here’s a thought…maybe the knuckles heads that are in charge…such as upper management, elected officials and such.
(A portion of this comment was censored for blatant profanity. Next time it occurs from this IP address, you’ll be blocked from posting. Be civil.)
The wrong people are being blamed and sacrificed.
To all you idiots that are busting on the regular state and local government workers, where do you think the real cash drain is from??? How about the welfare slugs…maybe the illegal aliens…here’s a thought…maybe the knuckles heads that are in charge…such as upper management, elected officials and such.
***Most of my message in my previous post was censored by the PC police, so I cleaned it up a bit. The following is a little less offensive to the sensitive.***
Maybe the boneheads that go to the DMV and other government offices without the proper papwork and documents, it wouldn’t take you 8 hours to get through it. Maybe if we shipped the illegal aliens back to the hole they came from, our government offices, hospitals, jails, freeways, ect. wouldn’t be overwhelmed.
The wrong people are being blamed and sacrificed.
Governor,
This is not fair.
I am ok for one month.
From second month onwards, i will have difficulty in making my mortgage payment
I dont have any power in controlling this crisis.
Learned people like you and the congress peple should resolve this.
people who have money will never understand the anxities of lower middle class people.
This is wrong on so many levels. Penalize LEGAL CITIZENS while you continue to give social service benefits to ILLEGAL ALIENS?! I wonder is Arnold is cutting his pay to the federal minimum wage? Side note, I’m proud to say that I had voted for McClintock.
California has 200,000 employees and 22,000 temporary workers. All we have is a lousy jobs and bad services.
We are $17 Billion deficits. We paying too much taxes. We should share the pains.
Like private sectors, CA Governor should cut 20 percent of his permanent employees.
The problem with the economy is multi facetted. Arnold had only one place to go to put this bandaid since he’s already promised not to raise taxes.
Maybe well get the point throught that illegal aliens are sucking the life blod from us, that too many trade imports and too much money going out of the state/country is lowering the price of the dollar, medical coverage is costing an arm and leg, shall go on?
It’s unfortunate, but neccesary. It will bring light to how bad the situation really is, since no politician will admit it.
Alphie:
You state workers are the ones who have been handing all the free bennies out to the illegal foreigners in the welfare offices. Karma is a nasty thing. You folks in state government should have worked through your union and refused to cut another check to an illegal alien. You should have protested. Now it’s too late to shut the barn door. The horses are miles away by this time.
BTW, I’m not a state worker. I’m an OC Taxpayer and a local government employee. I also believe “What goes around, comes around.”
Unfortuantly, the majority is being ruled by the loud PC minority. The quiet majority wants to honestly work hard, feed their families and help the needy. It’s too bad, the PC minority takes advantage of that, screws everybody and blame it on the conservatives and call them biggots.
I can rant and rave on my soapbox forever, but it doesn’t do anygood except give me an outlet. The media, unfortuantly, doesn’t consider my views to be “newsworthy” for their ratings.
Now can we cut all benefits to illegal aliens? Now can will bill Mexico? Just think of the billions we could save.
TCA has money take some of theirs too.
A problem I see is the good employees will look for other jobs. The bad ones will stay in their gov jobs and screw us some more.
No worrys at all. They will all have to apply for FOOD STAMPS and MEDI CAL.. And it’s just one big giant circle of Republican stupidity of no way of getting out of debt.
I was at a county office , and the girl behind the glass was completely oblivious to my presence, she had her back turned and she was on the cell phone. She turned around and kept talking on her cell and said what do you need? all snotty, then continued on her cell phone.
And unless things have changed I don’t think most county business phone calls are in Vietnamese.
SOOOO LAZY!!!
face it most county ,state employees are wasash ups who couldn’t cut it in the real world of business. The settled for their perks and lack of accountablity
I don’t think it will happen, he’s just trying took look muscular.
Halleluja!
Arnold has finally done something productive. He may actually have a small piece of his testicles left. I truly believed he had surrendered them both to Maria and Fabio. Now fire this idiot Chiang and lets get on with creating a realistic, fair budget where the private sector is not continuing to fund lavish compensation packages for all their public servants, that they don’t even have for themselves .
And here’s just one more Idea to help close the budget gap: Stop printing government literature in anything but ENGLISH.
I’m sure you guys have lots of others.
IN NOVEMBER, MAKE SURE YOU VOTE TO REQUIRE VOTER APPROVAL OF ALL FUTURE RETIREMENT PLAN INCREASES FOR COUNTY EMPLOYEES IN OC!!
This is long overdue and should be permanent. Anyone here been to the Laguna Hills traffic Court? That line is so long and they will have 2 windows open and 15 people sitting and talking and then when they do help you with the exception of a few, they have an attitude like you are bothering them and when I appealed my traffic case and won by the way, They had no idea what to do with the discovery, subpoena and appeal forms, they tried to tell me “we don’t do that here”, I had to look up the law, print it out and bring it with me for them to take my paperwork. Then the Referee decides to come in around 9 or 9:15 and is rude and has the assumption everyone is Guilty. This is what happens when we allow them to vote their own raises in and pay for luxurious items such as mortgages, car payments, travel expenses to foreign countries, clothes, exchanging gifts for the passing of laws, the Register has done stories on all of these.
We could maybe lose a few Sheriff’s as well, there are WAY too many in South Orange County and most of time is spent on revenue generation/traffic enforcement. That is $100K a pop, they do not need Hummers BMW’s as on duty vehicles,take home cars that is a bit extravagant. And most State and County workers wind up making more when the retire than when they worked, does the private sector has benefit plans like that? We seem to forget where the money comes from and why we do not have money for programs, infrastructure, etc. Our local school boards are corrupt and every week there is a story of taking money from the kids, scandals. Schools don’t need more money, we need to spend the BILLIONS correctly and not on outrageous salaries for chairperson who work one day a month. We have drifted so far from our founders ideals and that big government they warned us of is driving us bankrupt just like they said it would, just as they said a PRIVATE Central Bank that charges the Government interest on our own money when we could just print it ourselves like we used to would destroy the dollar, ruin our economy and enslave the American people in debt. We Americans don’t care anymore and think Government is good and will do the right thing, what happened to us? We used to be the most informed population on the planet in regards to our government, the elite and bankers were not in the shadows. President Kennedy even spoke all about it and was going to expose it to the American people, go listen to his speech as did Martin Luther Kings speeches, they were not meant just for black people. George Bush Sr was quoted as saying
“Sarah, if the American people had ever known the truth about what we Bushes have done to this nation, we would be chased down in the streets and lynched.”-George Bush Senior speaking in an interview with Sarah McClendon in December 1992
Google the Business Plot on how Bush’s grandfather set up a coup to overthrow the US Government and set up a dictatorship like Hitler, one TRUE American patriot stopped them. He also bankrolled the Nazi’s and continued to profit from them AFTER the war started. Why are these facts NEVER in the evening news? Or maybe Google FEMA telling local police that the Founding Fathers are terrorists. I will leave you with a couple great quote from one of our founders:
“The man who reads nothing at all is better educated than the man who reads nothing but newspapers. ”
“We did not raise armies for glory or for conquest. ”
“To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical. ”
“When a man assumes a public trust he should consider himself a public property. ”
Our dollar has lost 50% of it’s value in 8 years, this is not going away until we clean house, Our Declaration of Independence and Constitution states it is not our right but our duty as Americans.
hire all all the mexicans they will do the job for 2 dollars an hour
Arny,
CALTRANS! Go after CALTRANS!!! 4 supervisors standing around watching 2 guys with shovels of which one is digging.
We have some very close family friends, She worked for CALTRANS for 25 years. The last few years she was a manager of 8 people who she said would come in to work about 3 days a week. Nothing she could do since they would file a grievance. She just retired at 55. Based on conversations with them we figured she pulled in about $100K. She was informed that her retirement formula is about 85% of her last years pay. She was astonished and even admitted that it was obscene.
She was and still is a supporter of Arnold. Not his fault these stupid policies are in place.
Blame that moron Davis who gave and promised everything away to everyone.
How many of you people that voted for Arnold ever thought he would do a good job? He hasn’t done anything any better than Davis did. I don’t understand how people can be so blind. I’m not a govt. employee, I’m just concerned that the ones that rub elbows with Arnold all have their paychecks cut to $6.55. To take wages away from ALL govt. employees is just absurd.
This is what happens when government positions are decided by popularity over credibility
Well put octaxpayer.
Let’s quit the “nanny state” mentality and get back to a merit based public works and government.
At lest the Gov. has take an action instead of just sitting around and complaining.
Don’t forget, teachers and district employees are also state employees. Does this affect them and their ability to continue teaching in the classroom?
Isn’t our economy bad enough? What will a month or two do to those that rely on their current salaries to make ends meat? Putting food on the table for their young children and keeping the electricity and NECESSARY utilities going?
This decision is only affecting those that don’t have the ability to vote on the budget. What good does that do? Only those that make the decision needs to suffer.
WHEREAS until there is a state budget, the State has no authority to pay the following payments: (1) Vendors and Contractors for goods and services chargeable to Fiscal Year 2008-09; (2) Payroll for legislative staff, appointees, and exempt employees; (3) Payroll for other state employees beyond that required by federal labor law; (4) Highway User Taxes that are apportioned to the state, cities and counties for highway and road improvement projects; (5) Cal Grants to students in higher education; (6) Transfers to the Trial Courts; (7) Transfers to University of California, California State University, and Community Colleges; (8) Transportation Revolving Fund disbursements; (9) Non-revenue limit school payments; and (10) Payments for non-federally mandated social services programs such as Community Care Licensing, Adult Protective Services, State Only Foster Care; State Only Adoptions Assistance, and Cash Assistance Program for Immigrants; and (11) tax relief payments to low income seniors and disabled persons; and
Is Arnolds new hourly rate $6.50 an hour now? So typical, the rich get richer and the average person gets burned.
Support our CA Governor. Do not compromise with a powerful Unions. We do not have a choice but to layoff state and local employees.
We dragging on for too long. The longer it is the worst it gets. We have to share the pains.
Would You be interested to hire Realtors or Government employees?
The state workers are finally be getting paid what they are worth.Now let’s cut all benefits to Illegals who have sucked the state dry.
I say that if we’re looking to save money, why don’t we stop paying our Governor until he actually does some work paying for. I don’t see him lowering his salary? Let the Kennedy’s pay for him. The state can save some money and then maybe just maybe he can get some brains to work out something that is beneficial to CALIFORNIA.
Let’s recall Arnold Schwarzenneger! And while were at it let’s do the same with Bush!!
I agree I think we should bill Mexico for all of the illegals too that come to our country and abuse our system. That should bring in billions too, then the state should be OK.
This is the exact reason I left California—high taxes and giving social services along with free medical care to illegals. Without these expenses maybe the deficit in California would not even be an issue. Arnold had no choice if no budget was in place. I say stop the pay of the legislatures and
round up all the illegals and ship them out as soon as possible. Another suggestion do not let these illegals babies become automatic citizens by doing so the illegal parents get welfare and food stamps plus whatever else they can get from the tax payers of California
This is ridiculous. MINIMUM WAGE FOR STATE EMPLOYEES? You have to got to be kidding me, Arnold and the rest of the government are SCUM OF THE EARTH. First this, then the DEA raiding medical marijuana dispensries?
I really hope to live long enough to see the government collapse. It will be a great day. Our country has become a joke. No wonder why Iran is LAUGHING in our faces. Pathetic.
This can all be solved if the state legislature passes a budget on time like they’re required to do by the state constitution.
Part-time employees are the first to feel the effects because they’re… part-time employees!
I believe the legislators should be next, but that won’t happen in a million years.
Regular state employees should be bombarding their legislators with phone calls and emails to get the darn budget passed!
Why are you folks all blaming the Governor when its obvious that this issue is politically instigated? Why would the legislature still be sitting on a budget that should have been approved about a month and a half ago? I think Arnold is trying to do his best to help the situation. Tell your legislature to do what they have to do and stop using us citizen as their pawns! Lets call a spade a spade.
Cut the pay of the Legislators to ZERO and take away their per diem, cars and perks. Leave the workers alone.
I am an employee that provides Substance abuse service for the state prison system, we do not get state workers money we are just making between 10-13 dollars an hour. However our jobs were cut due to this man’s enable to understand what he is doing this is a bunch of crap. I have kids to feed and bills to pay what about us. By the way we are contracted employees for the state
James Sherk………You are so wrong about unionization, especially when you refer to the 1930’s. You’re probably a Republican or work for Wal-Mart with that mentality. You are just so out of touch with the working world. Before you go after the Unions…try going after the USA “supporting” illegals and let’s not even start with the govenor!
thank you ocobserver I agree with you!
“Maybe the boneheads that go to the DMV and other government offices without the proper papwork and documents, it wouldn’t take you 8 hours to get through it. Maybe if we shipped the illegal aliens back to the hole they came from, our government offices, hospitals, jails, freeways, ect. wouldn’t be overwhelmed.”
I agree there are boneheads. but as I mentioned to point out the bureaucracy we’ve created in this state I went there to PICK UP PLATES. they always say “want to save time, go online!”. well you can’t do many things online and they won’t mail customized plates so you have to go down there and waste yours and everyone else’s time. an hour and a half, and this is the “norm”. it’s very simple thing and no money changed hands. just GIVE ME MY PLATES. btw if I wanted an appointment you can’t get one for 4 weeks and the wait for that while I was there was still 30-45 mins.
if you’re from out of state then basically you have no other choice than to go down there and park it for a couple hours until someone can help you. you’re screwed…
“No wonder why Iran is LAUGHING in our faces. Pathetic.”
Iran is ‘laughing in our faces’ because you want to smoke marijuana? now there’s some logic and reasoning for you
They are still overpaid at 6.55/hour.
I’d like to see them enforce the Immigration laws too.
Stop the entitlements and social programs. Let Darwin have his way. If they are to stupid or lazy to get a job, they are just taking up space.
I also think the morons that pass the stupidass laws, specifically the legislature, should not only be fired, but tried for treason.
If they love America, or the State of California so much, they might try doing something to protect it, but all they do is pander to the lobbyists, and the poor lowly minorities.
Shame on all of them. Arnold is more patriotic then any of them. He works for a buck a year. Do you for one second think any of the bloodsucker politicians would do such a noble thing?
Hell no, I bet they don’t forget to vote themselves a raise in the face of all this turmoil.