Schwarzenegger Plan to Slash Workers Wages to Federal Minimum Hits Wall - 08/21/08

Submitted by Jesse Russell on August 20, 2008 - 2:54pm
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Efforts by California Governor Arnold Schwarzenegger to cut the pay of state workers to the federal minimum over a budget dispute with the state legislator isn’t going quite as planned. After State Comptroller John Chiang refused to comply with the governor’s orders to cut pay, Schwarzenegger filed a lawsuit against Chiang. That case is now tied up in court and will not be heard until September 12. The governor said the cut is necessary to avert a “cash crisis” that could result in the state borrowing money until the long overdue budget is passed. Chiang says the pay cut can not be enacted in a timely manner because the state payroll system is run on an outdated computer programming language.