Friday, July 2, 2010

Austerity Hysteria, California Style Edition

Austerity isn't "on the way" folks, for hundreds of thousands of state employees in the most populous state in the nation, austerity is now a fact of life.
Gov. Arnold Schwarzenegger has ordered the state controller to cut the pay for most state workers to the federal minimum wage of $7.25 per hour due to the lack of a budget being in place by the start of the fiscal year, which began Thursday.

The governor was expected to make that order, which affects about 200,000 state workers, though the timing was uncertain.

State workers who experience pay cuts would be reimbursed once a state budget is in place. Most state employees are paid monthly at the end of the month, so if a budget is in place before the end of July, they would not receive a reduced paycheck.

Administration officials maintain they are required by law to reduce worker pay in the absence of a budget.

In a letter to Controller John Chiang, Debbie Endsley, the director of the Department of Personnel Administration wrote, "Today is July 1, 2010, and there is no state budget. Regrettably, we must take the steps ... to adjust wages and salaries during this budget impasse."

The administration made a similar order in 2008, but Schwarzenegger waited until the end of July to do so.

Chiang defied that order and was sued by Schwarzenegger, but the budget impasse was resolved before a judge made a ruling in favor of the governor.
And before we go cheering on  how great and wonderful Ahnold is and how fitting it is for these state employee parasites to be reduced to minimum wage, let me ask a couple of questions.

1) Is $7.25/hour a living wage in California?  That's $15k a year, folks.  In California.

2) How does this stimulate the California economy and businesses in any way?

This is pure cruelty.  Retroactive or not, if the state doesn't come up with a budget, then California is paying its bills on the backs of its employees.  How would you like if your boss came to you and said "You're now making minimum wage until further notice.  Sorry."

How would you get by?

3 comments:

In Ur Blog Eatin Waffles (Accept no fail imitations) said...

This is the case of Goldylocks that I was telling you about.

Too much and not enough. Public compared to private - Public pay is higher so it needs to be brought in line. But I completely agree 7.25 an hour wouldn't buy you a big screen TV box to live in..

This is why people don't trust politicians. They are never proactive, they are always reactive...closing the barn door after the horses are out does not deserve a pat on the back.

Unknown said...

Schwarzenegger tried this last year but our Controller John Chiang told him to go pound sand. That led to duelling lawsuits that are still unresolved, so don't hold your breath for this to take place.

In Ur Blog Eatin Waffles (Accept no fail imitations) said...

Fresh off a major legal victory, Gov. Arnold Schwarzenegger's administration on Tuesday filed another lawsuit against the state controller in an effort to force him to pay California government workers the federal minimum wage.

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