A lot of Californians working for the state government are soon going to find themselves searching their couch cushions for gas money, after governor Arnold Schwarzenegger cuts them all to minimum wage. Facing a budget crunch due to disagreements in the state legislature over the budget, the governor has been forced to either take extraordinary measures, or bounce a lot of checks.
Although Republicans and Democrats in the Legislature remain at odds over how to close the state’s anticipated $17 billion budget deficit, Senate President Pro Tem Don Perata, D-Oakland, has called for a vote Tuesday on the Democrats’ budget proposal.
"The senator is committed to moving a budget to the governor’s desk so that it can be signed by Aug. 1, the date when the state will face more fiscal problems," said Lynda Gledhill, a spokeswoman for Perata. "Unfortunately, the time frame is dictated by the state’s fiscal condition."
Schwarzenegger’s planned pay cut for state employees is guaranteed to anger the workers and put even more pressure on Democrats and Republicans in the Legislature to quickly agree to a plan for closing the budget gap.
Although this seems drastic, it’s better than the alternative, and dispenses with the no-consequences way of putting problems off until they can’t be adequately dealt with. That’s what has caused this problem in the first place.
July 28th, 2008 at 4:59 pm
Ha. Obviously you don’t have anyone that works for the state helping pay for the roof over your head. This may sound better than the alternative to you, but this isn’t even an option for those effects. Think of up an idea that doesn’t devestate 200,000+ Californians and then maybe we can call it an option.
July 28th, 2008 at 5:25 pm
This is great! I hope that Florida will follow suit.
July 30th, 2008 at 3:06 pm
The legislators should have all been arrested on July 2, for breaking the law which requires them to have a budget in place by July 1, each year. The legislature spends 11 months a year fundraising for THEMSELVES instead of working on the budget which they know will take a long time to agree upon. The job of the legislature is to make a state budget. They should do their elected work instead of enriching their own coffers all year long. Arrest the selfish lawbreaking legislature! The state can say F*** paying the bills and get away with it without consequences. When they cut my pay to minimum wage I lose my home to forclosure, my credit cards, perhaps a vehicle or two is repossesed, just because of politics. Screw them. Every district in this whole state should recall their assembly member and senator and elect leaders who pledge to do the job they are PAID and elected to do, namely pass the goddamned budget.
July 30th, 2008 at 5:02 pm
Ken, if you do work for the State of California then I’m happy to see your pay cut. Maybe you should look for a better paying job elsewhere.
July 31st, 2008 at 3:42 am
Hey Mike, you have to be the dumbest piece of shit there is. Well, besides Arnold. Do you think that Officers of the law are going to put their lives on the line for minimum wage? We will walk out. Then you can see a state of emergency. Who will patrol the highways? I have an idea: let’s hire illegal aliens. Yeah, that’s it. They’ll work for cheap. Even better, why doesn’t the state of California just secede from the Union and become a part of Mexico. God knows they are the reason we are in this mess. I have a budget cut. How about let’s not take care of people who are not a citizen of this country. How about this: Why don’t we pull the plug on inmates who are on death row that are being kept alive on ventilators and costing millions and millions of dollars? What about inmates sentenced to life that are terminally ill? Inmates have more rights than good law abiding citizens. Mike, do yourself a favor and get your head out of your ass.
July 31st, 2008 at 11:59 am
The trouble with people like Mike is that they don’t quite understand the frustration of being a government employee. Politicians fund projects that will get votes. Essential services are ignored or underfunded, then emergency funded when the roads fall apart or the state catches on fire. Of course, emergency funds don’t exist, so we get debt. Blaming state employees is a joke, by and large they are trying to do a job. Arnold is going after them because they are an easy target and good way to deflect responsibility. Put the blame where is lies, on everyone, for voting for the current shitheads we have running our country at every level.
July 31st, 2008 at 3:46 pm
The problem with John is that he doesn’t know I used to be a government employee.
And to the rest of you out there working in CA for the government, enjoy your minimum wage. Get out in the real world already!
Try making a payroll once in your life then come cry to me. Bunch of wimps.
July 31st, 2008 at 6:27 pm
Ok can everyone see where Mike is coming from? First, his opinon is really pointless since he doesn’t even live in California and second, he’s coming from the standpoint of an employer who cares more about his bottom line than about the people who work for him, I feel sorry for anyone who works for this guy. Hey Mike, you wouldn’t have to worry about making payroll if they all walked out. My question is how can they take a selected group of people and punish them for the buget crisis? Are they the ones who made the financial decisions that got us in this mess? Shouldn’t the wage cuts come from the people who created this in the first place?
July 31st, 2008 at 6:38 pm
Actually, I’ve heard he pays pretty well.
July 31st, 2008 at 6:46 pm
Glad to hear that if you can’t respect your fellow man at least you can throw money at him.
July 31st, 2008 at 7:45 pm
Thanks Stephen. Actually this is one of the best places to work. And I don’t throw money at them, I pay them what the job I hired them for is worth.
July 31st, 2008 at 8:18 pm
Wow you people are communists!!!! How can you tell someone to run their business a certain way? All he is supposed to do is pay them and the y work. period.
July 31st, 2008 at 8:34 pm
Think of the State Employees as the sacrificial lamb.
CA state Congress don’t care enough for the State employees that they are willing enough just not have a budget and have the State employees pay get cut.
If we do not have a budget, guess what, the entire state will suffer.
Besides, you can’t find better benefits than those State employees, let them be the sacrificial lamb, think they are being used as a battering ram to push CA State congress to do their job.
July 31st, 2008 at 8:40 pm
It seems as if there are too few penalties for the legislators to allow the state to go along without a budget. At what point do vital functions start shutting down over this hoopla?
July 31st, 2008 at 8:56 pm
California’s problem is less budget so much as they scare companies out of it. Seems as though companies would rather move to a state that doesn’t tax the hell out of them than stay. And they wonder why they have no money for the budget.
August 1st, 2008 at 1:04 am
Thank you to the state controller for the following letter to the governor:
Dear Governor Schwarzenegger,
I understand that today you signed an executive order (Order) demanding the salaries of more than 200,000 civil servants who are covered by the federal Fair Labor Standards Act (FLSA) be cut to the federal minimum wage of $6.55 an hour.
To the extent that the Order attempts to govern the constitutional duties for which I was independently elected to perform and, because it is based on faulty legal and factual premises, I will not comply with the Order.
Your Order to reduce the salaries of these civil servants, making them bear the brunt of the budget stalemate, appears to be based in part upon what you perceive to be a conclusive and unequivocal determination by the California Supreme Court in the case, White v. Davis (May 1, 2003) 30 Cal. 4th 528, that my authority to issue warrants to employees in the absence of a budget is limited to the minimum wage.
One of the main purposes of the FLSA in creating a minimum wage standard was to protect vulnerable employees from employer wage exploitation. In furtherance of that objective, and in order to afford employees some level of protection, Congress set a minimum salary level for all employees covered by the Act. The FLSA does not, in any way, prevent an employer from paying more than the minimum wage.
In White v. Davis, this office took the position that due to technical limitations inherent in a payroll system that was developed more than 25 years ago, it was infeasible, if not impossible, to adjust payroll for the workforce to minimum wage during a budgetary impasse and, after the budget has been passed, to promptly restore the unpaid wages in a manner consistent with the law. Given the choice of paying nothing, which is a clear violation of the FLSA, and continuing to pay full wages, my office opted for the latter option as a means of protecting the employees from unnecessary financial hardship and, moreover, from exposing the State to possible treble damages for failing to comply with the FLSA.
In reviewing the matter, the California Supreme Court specifically declined to rule on the amount of salary that could lawfully be paid during a budget impasse. In its ruling, the court concluded that “in order to comply with the FLSA, the state, during a budget impasse, must timely pay nonexempt employees who do not work overtime at least at the minimum wage rate.” (italics added) But the court declined to specify whether the federal minimum wage or full salary is appropriate, opining, on page 68 of the decision, “In any event, as already noted, the Controller’s claim of infeasibility was not fully litigated below, and thus we do not believe it would be appropriate to attempt to definitively resolve the claim at this juncture…”
Also, contrary to your statement that the State is at risk, due to the budget impasse, of having insufficient cash to pay state expenditures, it should be pointed out that there is enough cash to meet all expenditures through September. As of June 30, unused borrowable resources totaled $12.7 billion. This is $3.6 billion higher than the $9.1 billion projected in your May revision to the budget. Should it be determined that the cash is insufficient, the law authorizes me to borrow money either through a Revenue Anticipation Note should there be a budget in place, or a Registered Reimbursement Warrant, commonly known as a RAW, in the absence of a budget. Some form of external borrowing is part of the State’s normal cash management process and will occur regardless of when a budget is passed or what solutions are contemplated in the budget. Reducing employees to minimum wage will not save the State money and will not impact any forthcoming borrowing decisions. In fact, deferring compensation until after the budget is passed may well expedite the need for cash to meet the unpaid amounts as soon as the budget is signed.
Finally, it appears as though your Order, while purporting to require compliance with the White decision, is actually inapposite of your reading of that decision. On one hand, you incorrectly indicate that there exists no authority to pay employees not working overtime more than the minimum wage and then, on the other hand, purport to authorize full pay to certain classes of employees. If your reading of the case is correct, then my office cannot make exceptions for those public employees who are engaged in “services and functions of state government deemed critical and exempt.” In other words, your reading of the court conclusion in White would mean I do not have authority to pay full wages to any FLSA-covered employee, including the firefighters on the front line in Butte County, the peace officers who patrol our streets and any other employee dedicated to “preserve and protect human life and safety.” Your assertion that I do not have the authority to pay some FLSA workers their full pay, but do for others, is not supported by the Supreme Court ruling in White. I either have the authority to only pay minimum wage, or I do not.
In closing, I must reiterate that any attempted adjustments to the payroll system would result in payroll problems that would continue for months after a budget is enacted. I also am compelled, as the State’s chief fiscal officer, to remind you that such a drastic cut in pay would cause huge fiscal harm to the families of more than 200,000 devoted civil servants. The loss of spending dollars will increase the loss in consumer confidence, and further deteriorate California’s fragile economy. The Sacramento Bee on Thursday published an article noting that the pay cuts to the 112,500 state workers in the region would cost the area $15 million a day.
For these many reasons, I have no intention of complying with the Order and encourage you to continue to work with the Legislature on passing a budget and with my office to ensure we have sufficient funds to meet the State’s financial obligations and pay for the education, health and public safety programs Californians expect and deserve.
Sincerely,
JOHN CHIANG California State Controller
Posted on July 31, 2008
August 1st, 2008 at 7:40 am
The problem is California has too many state employees to begin with. Hello people, wake up! Don’t hire so many people in the first place and you won’t be spending so much money through the years. This is like New Orleans building in a flood zone. Idiots! You get what you ask for but with morons like these you can’t hope for much.
August 1st, 2008 at 10:52 am
Maybe we’ll get lucky and California will just float away.
August 1st, 2008 at 10:55 am
Seriously though, it’s good to see a governor realize he can save a lot by cutting wages for people that otherwise would be taking my order at McDonalds.
August 1st, 2008 at 6:17 pm
Wow Mike do you have a soul? or are your just bored!! I can understand your stand point on you being your own boss, i really do. Listen though there are some hard working Police Officers in this world, and My mom happens to be a Manager at the DMV and she has been employed for many years there. Now ask yourself, should a woman who doesn’t harm people and just works hard for a living, be losing her home. Be careful!!!! The moral Mike, is don’t be selectively nice to people, be good hearted all the time. If you can’t feel this with an open mind you are too far gone… That’s sad too because anyone who is hard working and intelligent enough to have his own PAYROLL “MIKE” should also have common sence to respect people that are not out there doing nothing but damage to our society.. Please open your eyes bro and be compationate for the ones that are suffering right NOW!!!
August 1st, 2008 at 6:38 pm
When it comes to tax money it’s a different story. A better idea would be to file 13 most of those jobs. I didn’t force anyone to work at the DMV.
August 1st, 2008 at 11:50 pm
Its good they get a wage cut people who work for the state take their jobs for granted they are lazy and clumsy the jobs they do can be done by anyone with a high-school diploma.
August 1st, 2008 at 11:53 pm
I know about 15 people friends who work for the state in my county I do really think they are over paid and under qualified they worry more about what they are having for lunch than their actual job.
August 2nd, 2008 at 4:10 pm
If CA will ever wake up and STOP supporting people who won’t work, paying for healthcare for people who don’t work, giving food stamps to people who don’t work, paying 2/3 of the rent of people who wont work, we might see improvement. If CA will STOP putting all those “needs” on the backs of CA workers (State workers and otherwise) we could maybe get out of this. As long as our tax money continues to encourage abuse of these systems so they are designed for short term HELP and not long term lifestyles….. we will stop being the laughing stock of the country, and the main destination of illegals looking for a free ride (yah yah, I know, they may pick fruits and vegetables, and I appreciate that - but for the ones who are here illegally, it costs the state much more than their earning-a-living-in-the-fields can benefit the state)
August 7th, 2008 at 6:13 pm
The bottom line is the people. There are all kinds of people working for the state. There are all educational backgrounds. Anyone who has been affected by the economy, no matter whose fault it is, we’re going to feel a big punch in already hard times. I went from making 6 figures to begging for a $15 and hour job. It is VERY hard to get a job in California.
One decision didn’t cause this… sorry to say but everything has been sliding into the negative for a few years, everywhere. Starting with the housing market in key growth areas such as Phoenix AZ, a city where the country was monitoring potential growth and inevitable fall of our economy today. There were many triggers. The state can float and only take us so far. I know the Gov was hoping that he could carry the state until things got better…. well they haven’t! I know he is a physically strong man.. but just like your families. You do what you can to keep things normal, until you can’t anymore.
If you cant understand basic economics and projected historical data regarding the economy… then dont open your mouth about it. If you are not effected by this horrible econy, then good for you. Not everyone is on top of their game. I know I’d rather be in Jamaica, Negril… again… when times were good. They were real good. I just cant afford it! LET ALONE FILL UP MY FLEX/FUEL AVALANCHE (when there are no E85 gas stations) I have been waiting for 3 years.
I am finally seeing a light at the end… things are getting a little bit better. Or maybe we are all just getting desperate and grasping at any opportunity to make it easier.
All I know is hard times right now… I know a lot of you feel it too.
August 7th, 2008 at 6:49 pm
Yikes, E85. No wonder you can’t fill up. You get shit for gas milleage with that crap.
August 7th, 2008 at 7:00 pm
mike, it isnt available… I think you missed that. E85 is cheaper. It has almost 100 octane burns clean. The newer E85 systems are seeing better gas mileage so, that really isnt the issue. I am thinking more about my contribution to long term air quality and fossil fuels reduction. Which creates jobs and boosts the economy. Not to mention my grandchildren wont suffer the global consequences of our past 100 years.
August 7th, 2008 at 7:05 pm
Mike are you just looking to argue? Poke fun? Get a rise? Because all of us really think that you can only see as far as your reflection in the mirror.
But you could be a genious just trying to stimulate the brains of the many….. hmpft
Not everyone lives in the right now. Some of us still plan for the future. In a LARGE scale. What do you do to help your community? Do you ever volunteer your time? Help elderly parents? adopt a child? Attend a community fundraiser and donate!?
The world turns regardless of your feelings…
August 7th, 2008 at 7:20 pm
Lainey, what you don’t understand is that it’s just not the government’s job to subsidize the lives of private citizens. Police and fire protection are important. Roads are important. But there are billions of dollars going into areas just to keep people employed. Sure those people may be working hard and maybe they’re making a contribution but it’s NOT THE GOVERNMENTS JOB TO DO IT!!!
The US is becoming a kind of socialist government and people just accept it like it’s not so bad. How are we any different now from the People’s Republic of Britain or even a full-blown communist empire?
August 7th, 2008 at 7:30 pm
yolanda.. you totally contradicted yourself. I NEVER said it was the governments job to subsidize the lives of its citizen. My wife works for the police department so you are barking up the wrong tree. It is the governments job to support not only itself but its citizens. I think you are going way off point here. The private business vs. governments jobs sector is not close to a Socialist government. start panic on misinformation…
Like I said the world still turns…
but ask yourself what you are doing about it. if it is nothing within your community, then get off your butt.
August 7th, 2008 at 8:02 pm
If you’re not asking for subsidization then why is the government playing such a big part here? They would not be going under if they weren’t pissing away so much money on stupid programs. Believe it or not, that’s socialism. It creeps up on you like cudzu!
By the by…who told you to get a flex fuel truck in Cali? I doubt Arnie put a gun to your head and said, “You better get something that can use E85!” That’s your own fault, dummy!
August 7th, 2008 at 11:37 pm
Lainey, I’m here for only one thing and one thing only, me, and selling my goods and services at the highest possible price that the free market will pay. This way my family can live as we like and make the largest “carbon footprint” as possible. I’m sorry to see you bought into this global warming scam.
August 12th, 2008 at 10:49 pm
Since when is this just a “governor and legislature” thing? The people need to get involved in their state government and if this is the way to get them interested then so be it! Come on people, get off your asses.