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Actually, it was the state apellate court decision that Connell would have to pay minimum wage for all state employees in the absence of a budget. Was the decision appealed to the state Supreme Court, or will the minimum wage payments really begin next week?

California: Court says "Pass budget or cut spending"
The San Francisco Chronicle | Thursday, May 30, 2002 | Mark Martin, Greg Lucas, Chronicle Sacramento Bureau
Posted on 5/30/02 12:04 PM Pacific by Ernest_at_the_Beach

Sacramento -- An appeals court on Wednesday severely restricted the state's ability to spend money -- including financing for schools -- if the governor has not signed a new budget by the July 1 deadline.

The California Court of Appeal in Los Angeles also said state workers could be paid only the federal minimum wage if the Legislature and Gov. Gray Davis fail to come up with a budget when the new fiscal year begins. ....

California: Court says schools to lose if budget is late
The San Diego Union Tribune | May 30, 2002 | Ed Mendel
Posted on 5/30/02 4:13 PM Pacific by Ernest_at_the_Beach

SACRAMENTO – If a new state budget is not signed by July 1, a state appellate court decision issued yesterday would block a $3 billion payment to schools in July and would cut state worker paychecks to the minimum wage.

School groups, fearing that the Proposition 98 school-funding guarantee could be weakened, may join state Controller Kathleen Connell in an appeal to the state Supreme Court, or pursue a separate legal strategy to overturn the decision.

The ruling in a 4-year-old lawsuit filed by the Howard Jarvis Taxpayers Association ....

State budget debate clears one hurdle (CA)
Sacramento Bee | 5/30/02 | AP
Posted on 5/30/02 5:39 PM Pacific by randita

....
Senate Budget Committee Chairman Steve Peace, D-El Cajon, ... warned that if the conference committee didn't start work soon lawmakers wouldn't make the June 15 constitutional deadline for putting a budget on the governor's desk.

There's no penalty if they don't pass a budget by that frequently missed deadline ....

An appeals court ruled Wednesday that state Controller Kathleen Connell can pay minimum wages to state employees, make payments on state debts and pay judges' salaries in the absence of a budget.

But the court said the state can't make support payments to public schools without a budget in place.