Schwarzenegger may go down as a creative governor
I made this point earlier today, government must reduce costs – lay off workers and put them into the marketplace. That will drive down the cost of labor that has become globally noncompetitive. The governor isn’t laying people off, he is just making them work for minimum wage because the budget isn’t in place.
The court supports this measure.
“Court OKs guv's order to cut state worker pay
Marisa Lagos, Chronicle Sacramento Bureau
July 2, 2010 01:01 PM Copyright . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.(07-02) 13:01 PDT Sacramento -- The governor has the authority to lower most state workers' pay to the federal minimum wage if a state budget isn't in place, a state appeals court ruled today, the second day of California's 2010-11 fiscal year.
The ruling comes one day after Gov. Arnold Schwarzenegger ordered the state controller to cut pay for about 200,000 state workers to the federal minimum wage of $7.25 an hour. But Controller John Chiang, a Democrat who last year refused to follow an identical order by the Republican governor, is expected to appeal to the Supreme Court, and likely will not abide by the ruling until it has been fully resolved. He has also said that it would be technically impossible to slash pay for some workers "because of the limits of the state's current payroll system."