Schwarzenegger signs pay-cut order

[flashl]

Source: LA Times



The governor hopes to cut state workers' pay to minimum wage until he and legislators OK a state budget. Controller John Chiang, though, says he won't implement Schwarzenegger's executive order.

By Nancy Vogel, Los Angeles Times Staff Writer
July 31, 2008

SACRAMENTO -- Gov. Arnold Schwarzenegger today signed an executive order temporarily slashing the pay of roughly 200,000 state workers to the federal minimum wage of $6.55 an hour.

Schwarzenegger administration officials said such action would help give the state enough cash to get by until a state budget is signed. The budget was due July 1 but is still being negotiated by the governor and legislative leaders.

Once a budget is signed, state workers will get full back pay.

State Controller John Chiang has said he would not implement Schwarzenegger's executive order because it would leave the state vulnerable to lawsuits and harm workers.

Read more: http://www.latimes.com/news/local/la-me-arnold1-2008aug01,0,1783186.story

[DJ13]

1. How can he violate California's own minimum wage law, which is above the Federal amount?

[Juneboarder]

28. I agree... Things are on the brink of scary

Thousands of jobs lost today; wages slashed to decade old wages in CA... I don't know much about legal aspects, but it sure doesn't sound like things are good for anyone with a State job right now.

[slackmaster]

31. California state law requires most workers to be paid at least twice each month

One of the big exceptions to that is state workers.

:crazy:

The state is exempt from many of its own labor laws.

[barius12]

33. Well

If you want government healthcare, they have to cut other government expenses like labor rates.

[gateley]

2. Here's another source on this:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3417739

[flashl]

3. Thanks, didn't see it. nt

[gateley]

11. The different sources emphasized different aspects, so it's

good to see more than one take on it. Good to see more than one take on any issue!

[Pale Blue Dot]

4. Great minds think alike (or notice dpressing stories alike)

Gov. Arnold Schwarzenegger, one month into a state budget impasse, today ordered the layoffs of thousands of state workers and steep pay cuts for most other state employees in an effort to save cash as California faces a multibillion-dollar budget deficit.

The state has been without a budget since the current fiscal year began July 1, while the governor and the Democrat-controlled Legislature work to come up with a spending plan to fill a $17.2 billion gap that would include $2 billion in reserves.

"Today I am exercising my executive authority to avoid a full-blown crisis and keep our state moving forward," said the governor, whose move was expected after The Chronicle and other news outlets obtained a copy of the order last week. "This is not an action I take lightly, but we do not have a budget, and as governor, I have a responsibility to make sure our state has enough money to pay its bills."

Cutting the pay of about 200,000 state workers to the federal minium wage of $6.55 an hour would save California as much as $1.2 billion a month, the governor's office said. Such workers would get regular pay plus back pay once a new budget is approved.

The layoffs of nearly 22,000 temporary, seasonal and student workers would save the state as much as $28.5 million a month, the governor's office added. It is not clear whether workers laid off would be rehired when a new budget is enacted.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/07/31/BAEP122S2P.DTL&tsp=1

Republicans refuse to raise taxes (because that will hurt the rich), so guess who pays?

[AlCzervik]

5. many of the people in my neighborhood are state workers and if this really goes through

there will be many so screwed.

[Pale Blue Dot]

7. This is terrible.

Besides the damage this will do to CA, I have another question: Many states are in financial crisis right now - will this move end up being the exception or the rule?

[AlCzervik]

9. that's a good question, sometimes the trend starts here and blows eastward.

[flashl]

8. Unlike big gobbermit States are bound to a budget. Its sad for the families that must tighten their

belts to weather this economical storm.

[AlCzervik]

10. i think it might end being more than belt tightening if this goes on for a few months.

we already ready foreclosures here and this could potentially make it even more of a disaster.

[flashl]

12. Didn't think that far ahead, hope there is a foreclosure moratorium in place. nt

[AlCzervik]

14. The Gov. assured state employee's there will be loans available to them for what that's

worth but as far a moratorium on foreclosures imo that will never happen.

[flashl]

6. ..

:thumbsup:

[barius12]

34. Cali

California has some of the highest tax rates in the nation. Where are they supposed to get more money to remain competitive with other states?

[Jim__]

13. Three cheers for John Chiang!

Can asshole arnold fire him?

[tularetom]

19. He was elected by the electorate in an election

So ahnuld is shit outa luck.

[gateley]

15. The State governments have been hit just like everybody else.

I don't know what else he CAN do -- it's just a heartbreaking problem and also heartbreaking that this is indicitave of what's happened to our country. We're broke.

But when we don't have enough money to pay our bills, we can't snip payments from here and there to make up the difference. The electric company won't take less money for providing the same amount of power. So what happens when these people can't pay their basic bills?

I'll say it again, I am absolutely heartbroken that this is what has become of our country.

[flashl]

16. Just when you say, it CAN't get worse ...

[gateley]

17. I know --

and I think we don't have a clue -- it's just not in our world-view -- of what's in store for us.

[galileoreloaded]

23. That was the most intelligent thing said here in three days

We see things in such an Ameri-centric view, and the reality is that we are now ,unfortunately or fortunatly, citizens of the world. While we may not end up living on two dollars a day like 90% of the world, we are going to have to start looking at other models of community and, for lack of a better term "Mutual aid pacts" to survive. Our standard of living is going down hard with a mix of deflationary and inflationary causations. This is a concept that transcends traditional economics and has been labeled the Law of Scarcity.

Things (food, oil, money, credit, everything) run out. The consequences are usually very brutal and real. I invite people to look at the events that led to the Argentinean issues in 2001. The difference at that time was a well capitalized world that could in some small sense, give aid. The current issue is one of global over leveraging, and there will be no one to help. Something to think about.

This is not a future thing that we can all band together and fight politically or otherwise, this is here and now. Call your family, know who your friends are. Spend a couple hundred buck for an EMT course, make friends with a doctor or nurse. It is going to be very important to band together like most other poor cultures, (Mexico, Africa, et al) and have co-mingled skills. Dow 5000, no SSI, no Medicare, very little in services that we currently enjoy, is going to be the norm. The pin is out of the grenade, metaphorically speaking, and there is very little politicians or government can do to stop it. Total debt to GDP is at 365% as of 3/31/08, compared to the 1929 crash of 258%. The deflation that is happening, the job losses that are happening, the increase of corruption and graft, are all symptoms not the problem. Reversion to the mean due to overpopulation is the problem, and Mother Nature cleans up mass societal evolutions just as well as bacteria in a petri dish.

All very depressing and very real. I wonder how much of the current political bickering is designed to keep people separated and not "big picture" oriented. Probably time to be good to each other.

[gateley]

27. I'm nodding along with everything you say.

Argentina is a good example, but I still think the majority of Americans would feel it couldn't happen here. We're America!

And when things get this desperate, people will react and respond out of fear. As you say, the increased violence is a symptom.

Agree it is long overdue and much needed for people to good to each other right now, although I'm afraid to say I think it will take people a while to get to that place. Next it will be taking care of me, regardless of how that affects my neighbor. :(

And welcome to DU! :) I'm looking forward to 'seeing' you around. :hi:

[azul]

18. Total recall election

He's much more vulnerable now what with a democratic SOS not delaying initiative petitions. It's up to the local media and people to show their displeasure, and send him and his fleet of military hummers back to pumping iron on steroidal beach. Enron's kindergarten cop deserves a good spanking.

[joeglow3]

20. What SHOULD he do?

I don't like this move one bit, but what other option does he have?

[mike_c]

24. raising taxes, for a start....

This is a budget balancing matter, more than anything. The budget is so contentious this year because the revenue shortfall is so great. All democratic governments have to understand their responsibilities to provide services they've committed to, whether through contract negotiation or through legislation-- and the need to raise the revenue to pay for those obligations. I'm sure there are many legitimate ways this state can reduce its costs, and we should explore those, but ultimately the social contract must be honored if the state government is going to enjoy the citizens' confidence. That means that the governor and the legislature have to do the hard tasks and collect the revenue needed to honor their contracts. California remains one of the wealthiest states in the U.S.-- one of the wealthiest economies in the world, for that matter, despite the challenges facing it today. The governor and the legislature could solve this problem in any number of ways, but each is so desperately wedded to serving their particular special interests and enhancing their own power that the search for a budget solution has become a search for the least powerful constituents to shaft in response to the shortfall. That's not how effective governments should operate.

[roody]

36. Tax sales of yachts.

[mike_c]

21. as a CA state employee-- I think a general strike will result if this is implemented....

I'm pretty certain my union will strike if the state does not honor its contract with us.

[slackmaster]

25. Are you an AFSCME member by any chance?

They were already around when I was a state employee back in 1978-79, but my position wasn't eligible for union membership.

[mike_c]

29. nope-- California Faculty Association, affiliated with SEIU....

The CFA represents faculty at the California State University. http://www.calfac.org/index.html

[slackmaster]

30. Good luck whatever you decide to do

If you strike, you are fully justified as far as I'm concerned.

[PlanetBev]

22. How many of these people that are being affected voted for this asshole?

They voted against their own interests when they check the box for musclehead Arnold. A lot idiots in this state wanted an action figure for governor.

How'd that work out for ya, folks?

[slackmaster]

26. Probably very few state employees voted for him

:shrug:

[kmac3]

32. Rich power vs working people . . . nothing new here . . .

Of course that includes the salary of the Governor as well ......

:sarcasm:

[kuratowa]

35. Actually, it would be a pay INCREASE for Arnold

Arnold only takes a $1.00 salary as governor of California.

http://capitalcomments.typepad.com/capital_comments/2007/05/1_salary_for_go.html

[physioex]

38. Marketing Ploy......

Factor in the special interests first.

[DaveJ]

37. "Once a budget is signed..."

"Once a budget is signed, state workers will get full back pay."

Okay so they already know they WILL get back their full pay after the budget is signed. So what's the point putting them under this hardship? Either way the state's paying the same amount of money, maybe plus or minus the cost of financing which I suppose poor are supposed to pick up?!?!?

Is it a prerequisite that politicians have to be STUPID? How could CA elect this guy?