Will it be minimum wage for California’s state employees? It’s an option if a budget stalemate isn’t broken. Jesse Russell reports:

California Governor Arnold Schwarzenegger threatened on Thursday to cut the pay of state workers down to the federal minimum of $6.55 per hour if a budget stalemate isn’t broken. Democrats and Republicans in the state legislature are battling over a $15.2 billion budget deficit and the governor suggested the pay cut as a way to save the state money as the budget languishes. The executive order would pay workers once a deal is signed. In the meantime, it would also force state agencies to terminate 20,000 contracts with interns and temp workers. The Service Employees International Union represents many of the state workers and is considering legal action if the Governor moves to slash wages.