Lawmakers Reject State Worker Pay Cut

Sacramento Bee ^ | June 16, 2009

[Steelfish]

Tuesday, June 16, 2009 Lawmakers Reject State Worker Pay Cut

By Jim Sanders

A new across-the-board pay cut for state workers was rejected Tuesday by the Legislature's joint budget conference committee.

The 5 percent salary reduction had been proposed by Gov. Arnold Schwarzenegger to save $470 million and preserve cash in the coming fiscal year's general fund budget.

The legislative committee rejected the pay cut by a party-line vote, 6-4, with no Republican support.

The measure was one of dozens under consideration to bridge a projected $24 billion budget shortfall. Even with the committee's action, the pay cut and other rejected items could resurface as negotiations continue.

Gov. Arnold Schwarzenegger reacted with disgust: It's outrageous that the Legislature would ask Californians to pay higher taxes but refuse to cut the pay of state workers by 5 percent," he said in a statement. "This is exactly why so many Californians have lost faith in Sacramento's ability to solve problems.

The pay cut targeted 235,000 workers under the Republican governor's control, including aides to constitutional officers. The state's judicial and legislative branches would have been exempt because they are autonomous.

The 5 percent slice in salary would have been in addition to two-day-a-month furloughs already imposed on most state workers.

[neodad]

Just setting the stage for the bailout.

[paul51]

Make it 20% plus a severe cut in health/pension benefits.

[2banana]

These socialists will not cut ONE dime of government spending. However, they will vote for every tax increase there is as it is OK for you to cut spending to pay the taxes...

[I am Richard Brandon]

To use that well worn expression, “It's going to be interesting.” We are watching a slow motion train wreck. What will they do when the money really runs dry? They fiddle and faddle and propose this and that, but nothing actually gets done. The Democrats are damned if they do (their union paymasters) and damned if they don't (voters). I believe the GOP should make some sound proposals and push them. Leave the Dems to self-distruct.

Remember what brought the USSR down - lack of money and lack of excuses.

[notaliberal]

They want to cut the pay of American workers, yet will not cut any benefits to illegals.

[Graybeard58]

Has Arnold taken a pay cut yet?

[nufsed]

IIRC Arnold doesn’t take any salary from the state.

[randog]

What will they do when the money really runs dry?

They'll raise taxes. The state legislature is just an extension of the state employees union.

[marsh2]

Our County is currently able to pay payroll for clinical services for the severe and persistently mentally ill for 30 more days. The state has not paid the County for services already rendered after December 2008 and there are indications that they will not pay anything until 2010.

The County’s contract with the state to provide these services ends the end of this month. It has been historically extended for the next year. The County is now looking at turning the program back to the state and laying off the entire department. There simply are no more internal funds from any department from which to borrow to continue the services.

Private specialty providers are similarly affected. They have provided services under a line of credit from local banks under the understanding that the state IOU would be paid. It has not been. They are also looking at halting treatment and laying off staff.