Schwarzenegger orders 22,000 job cuts amid fiscal crisis

[gatorboy]

http://news.yahoo.com/s/ap/20080731/ap_on_re_us/california_budget

His signing of the executive order had been expected since last week but stood as a stark illustration of the cash problem facing the nation's most populous state. Schwarzenegger apologized to state workers but said he had no choice.

"Today I am exercising my executive authority to avoid a full-blown crisis and keep our state moving forward," Schwarzenegger said. "This is not an action I take lightly."

<snip>

The 22,000 people who will lose their jobs immediately include retired state employees who work under contract, temporary and part-time workers such as those who fill in at the Department of Motor Vehicles, seasonal employees and student assistants.

Schwarzenegger also cited a 2003 California Supreme Court ruling allowing him to slash the pay of regular full-time employees when the state lacks a budget. By law, those workers must be paid at least the federal minimum wage of $6.55 an hour and will be reimbursed once a budget is approved.

The administration estimates that immediately terminating the contracts and suspending overtime would save the state about $80 million a month. The deferred wages would take several weeks to implement, saving the state $300 million to $400 million a month starting in late August.

[Newsjock]

1. If I were a state employee making $24 an hour

I'd come in to work at 8 a.m., and then at about 10:10 a.m., I'd tell my boss, "Sorry, that's it for today," and just go home. Repeat every day until this is over.

The excuse that "they'll get this money back when it's all over" is bogus. I can't tell my landlord, "Hey, I don't have the money today." I'd be out on the street.

[butterfly77]

2. I guess they will blame...

the Dems for this too..

[a kennedy]

3. Oh my gawd.....

I wonder how many other states will follow... :wow:

[gatorboy]

5. They've already cut the federal temp jobs here in Arkansas.

My wife's uncle who works for the National Park Forestry Service was already informed that he will not have a job by this time next year.

[hedgehog]

7. New York is headed for some rough times.

Gov. David Paterson confirmed the current state budget is now off balance to the tune of $630 million, and while he will address this "administratively," he wants the Legislature to cut another $600 million for an overall reduction of $1.23 billion.

http://www.nydailynews.com/blogs/dailypolitics/2008/07/paterson-630-m-shortfall-this.html

[Kajsa]

4. It's blackmail, plain and simple.

Ahnuld's decree to slash wages of state employees
if the budget doesn't pass
isn't going to happen without a BIG fight!

The SEIU and John Chiang say otherwise.

http://www.sco.ca.gov/

Specifically, John Chiang, the State Controller,
sent Ahnuld a letter today stating he
REFUSES to comply with this executive order!

http://www.sco.ca.gov/eo/pressbox/2008/07/pr08042.pdf

edit- link to letter didn't work- sorry-

Here's another source, unable to find letter though,

http://www.kcra.com/politics/17048455/detail.html

State Controller John Chiang, a Democrat, sent a letter to Schwarzenegger
on Thursday saying he will defy the order and issue employees their regular paychecks.

He said the governor's executive order was based on "faulty legal and factual premises."
Chiang said the 2003 Supreme Court ruling did not specify the actual amount of the salary his office
could pay state employees during a budget impasse.

The controller and the administration also differ over the state's financial condition. Chiang maintains
that California has enough money to meet all its expenses through September.
If it's later determined that California has insufficient money, Chiang said he is authorized to borrow
until a budget is approved.

Chiang's refusal to comply sets up a potential legal skirmish between his office and that of Schwarzenegger.
The governor was asked during the news conference whether his administration would sue the controller's
office if it did not comply with the executive order.

"If that's what it takes," he said. "I'm here to make sure that our state functions, and whatever it takes, I will do it."

Mr. Chiang,

:yourock:

[Hawkeye-X]

18. Since Ahhhhhnold is a multimillionaire

and he's fucking the Californians three ways from Tuesday - he should pay the employees himself and SEE how he likes it.

[Kajsa]

19. Great idea, HawkeyeX!

:D

[Heather MC]

21. Can't he just make a crappy movie to fix, the budget problem?

I know he and stallon and bruce willis can do a testosterone filled action movie about killing terrorist and drug drug dealers who threaten to blow up California
Throw in some cheesy catch phrases, a somewhat sexy soon to be forgotten starlet. and end with blowing up something huge and important that some how saves the day.
Maybe they can get Will Smith to do a Cameo. They couldn't afford to pay him for more than three lines.

take the proceeds from the crappy movie and use it to help 22,000 keep their jobs
just a thought!

[AlCzervik]

6. i was watching the press conference with him and then the state financial director?

anyhow if this really through the whole state is in for a world of hurt, people laid off, people trying to pay a mortgage or rent of min. wage and services cut.

[Disturbed]

8. Aren't there other options?

What else could be done?

[AlCzervik]

10. well this will happen of the budget is not agreed on by Aug. 1st, the lay offs though will happen

immediately and trickle down for the next few weeks, if the budget isn't passed by sept 1 then many employee's will get min. wage, that's supposed to be the first paycheck affected but i could be wrong on the date.

The alternatives are raising taxes which republicans do not want to do and in California you need 2/3 to pass the budget.

[Pale Blue Dot]

9. Republicans are refusing to raise taxes.

That might hurt the rich.

This plan, however, hurts a bunch of people that don't matter.



(BTW, :sarcasm: for those who can't see it.)

[AlCzervik]

12. this is so bad and i hope Chiang will continue on with the fight. This really is about

the working class you know, really fucking high sticking them and it's outrageous.

[tandot]

11. The University of California will be next. They already warned us

that they might follow Arnold's lead to "assist the Governor and the State in addressing its fiscal situation."

Some people will not be able to make their mortgage payments if they get paid minimum wage. Add them to the already bad foreclosure situation here in California.

[RC]

13. How much is Arni slashing his own salary to help out?

[AlCzervik]

14. he doesn't take the salary, it's chump change to him.

he still sucks though.

[Postman]

15. CA state workers should conduct a WILDCAT STRIKE.

The state of California, a state with an economy that is larger than some countries, hasn't enough money to pay it's workers?

[Kerrytravelers]

16. Eh. Don't worry about the small people.Those who own multi-million dollar estates and yahts are fine

That's all that really matters, anyway.



:sarcasm:

[AlCzervik]

17. it's time someone said it! Please, won't someone think of the wealthy?

[bigmoon]

20. I can see cutting seasonal employees but no one else

n/t