BBC: Thousands laid off in California ( Arnold does it to State Workers )

BBC ^ | Friday, 1 August 2008 01:33 UK 00:33 GMT | BBC Staff

[Ernest_at_the_Beach]

Thousands laid off in California

The governor said he had not taken his decision lightly

Governor Arnold Schwarzenegger of California has moved to end a budget crisis by sacking 22,000 state workers and ordering pay cuts for 200,000.

The most populous state in the US faces a budget deficit of more than $15bn (£7.6bn), and legislators are struggling to agree a spending plan.

The cuts, which will save $100m a month, are designed to put pressure on politicians to end the budget crisis.

But a leading official in the state challenged the decision to cut pay.

California has one of the largest economies in the world and it has no way to pay contractors for many of the services it provides.

Some 30 American states face budget deficits caused by rising costs and falling revenues in a slumping economy but California's is by far the largest.

'Whatever it takes'

Mr Schwarzenegger, the former Hollywood film star turned Republican politician, told reporters he had signed an executive order on the staff and pay cuts.

[calcowgirl]

What the hell is the point?

This is just another stupid stunt that does nothing to solve the SPENDING problem.

A draft order states that pay would be cut for about 200,000 state workers to the federal hourly minimum wage of $6.55 until a budget is signed.

After the budget is signed, workers would receive their full pay for all the time they worked at the minimum wage.

source

[dalereed]

The criminal part is that as soon as there a new budget they get all their back pay.

They should lose it all!!!

[notaliberal]

Jack OConnell Superintendent of Public Instruction is not going to implement Arnold’s order either. Says no retired annuitants or student assistants need not worry about losing their job either.

[freekitty]

Let’s do a lot more cutting especially the federal government.

[Buddy B]

Doubt it? I am thinking he is an elected official.

[Orange1998]

I would believe him to be sincere if he cut his pay to min wage. This was only for show.

[SierraWasp]

"now comes the attack on Prop 13...."

Oh! You are SO RIGHT!!!

[ucsd1974]

Californians recalled their former coin-operated governor Gray Davis who served up whatever the tax-consuming unions demanded. Schwarzenegger campaigned as a fiscal conservative, but forsook that concept once the teachers' union and other public employee unions started pounding him into submission. The California taxpayers are getting crushed in this Democrat-run state.

[douginthearmy]

I dont think he even receives a paycheck.

[ThomasThomas]

Schwarzenegger takes $1 a year salary. He is cover on this one./p>

[Porterville]

Damn... is he getting ready to run for president somehow?

[MistrX]

I would believe him to be sincere if he cut his pay to min wage. This was only for show.

Arnold collects zero salary.

[taxesareforever]

And the chickens come home to roost.

[El Cid]

...now comes the attack on Prop 13....

I know the politicians in Sacramento drool over this prospect -- but I don't know if they really need to do this. They've run an effective 'end around' over the past few years by coming up with new 'fees' for almost anything... Who needs to raise taxes when you can implement/raise fees by fiat.

In addition, I believe Sacramento really wants the gasoline prices to continue to increase. This spike over the past two years has been an unexpected for those folks in the Capitol who couldn't balance a budget if their lives dependent on it. Because the gas tax includes a sales tax that is a percentage of the gasoline price per gallon - Sacramento has gotten a good boost to their revenue. They'll block off-shore drilling, or anything, that might drive the gas prices down...

Good thing that we're not relying on the temporal - because I don't see digging out of this financial hole with the leaders we have (and given that 'we've' voted them in -- we get what we deserve)...

[tflabo]

Here's another hunk of Ca. taxpayers $$ wasted.

California gives go-ahead to stem-cell research Proposition 71 provides $3 billion in state funding over next decade......from 2004

[calcowgirl]

25 of the 32,279 proposed “cuts” were to the Sierra Nevada Conservancy (and 61 to the Coastal Commission).

Pretty disgusting that they *have* 25 employees, IMO.

[longun45]

If the legislature democrats would put down the crack pipe and start working for the peoel insead of trying to figure out ways to fleece the people, or to screw the population out of every civil right they have. But instead this bunch of braindead wates of oxygen want to teach communism in the schools. They want the students to knwo state is mother and state is father. When the people do not need the state at all.

The whole bunch (the entire state government, every last state government employee, including teachers, professors and secratarys and everyother position.)should be thrown out and sent to Siberia.

I’m being nice today. LOL

[Mister Da]

I smell a Federal bailout coming!

Pelosi will easily make this happen if Obama wins, or will swap it for offshore drilling if McCain wins.

That's why the CA Rats are doing nothing to resolve this. The fix is in!

[Carry_Okie]

What he should have done in 2004.

[El Cid]

Re: 34

I checked the sales tax on Gas, and California's gasoline consumption, and came up with ~$2 billion windfall to California's revenue due to the $2/gallon spike we've seen since the Dems took control of Congress:

With a 6% Sales Tax + a 1.25% County Tax (or a cumulative 7.25% tax that stays within the state) on gasoline sales - California is raking in the dough with this $2/gallon spike that's occurred since the Dems took control of Congress. In 2007 California consumed 15.7 billion gallons of gasoline, so we're talking an added ~ $2 billion boon (7.25% x $2/gallon x 15.7 billion gallons) to Sacramento's budget - that the Dems probably didn't anticipate.