Governor (Schwarzenegger) orders layoffs, heavy pay cuts

[flashl]

Source: SF Chronicle

Matthew Yi, Chronicle Sacramento Bureau
Friday, August 1, 2008

(08-01) 04:00 PDT Sacramento - --Gov. Arnold Schwarzenegger ordered the layoffs of thousands of state workers Thursday and steep pay cuts for most other state employees to ease California's budget crunch, moves that could mean longer lines at the DMV and delays in processing of workers' compensation claims.

...

State Controller John Chiang, who is responsible for disbursing paychecks, sent a letter to the governor on Thursday reiterating his position that he would disregard Schwarzenegger's order to cut workers' pay.

Also on Thursday, about 10,300 seasonal and temporary state workers were given layoff notices, a move that will result in savings of $19.7 million a month for the state, officials said.

Most of those jobs are clerical and administrative and won't have an impact on public safety and emergency services, administration officials said. But the cuts are likely to affect other services, such as customer service at Department of Motor Vehicles offices and the processing of workers' comp claims.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/07/31/BAEP122S2P.DTL&feed=rss.news

---

The 'instant cash infusion' budget trick of laying of workers that fuel 'growth' the past thirty years is really getting old.

[fasttense]

1. Did he give himself a pay cut too? n/t

[MUAD_DIB]

28. I don't believe that Ahh-nold collects a pay check.

Like Romney, when governor of MA, Ahh-nold does it for free.

When you really think about it don't you want a governor that feels like he or she needs the pay check: that feels like they need to earn it?


What's the motivation for them to come to work every day?

Where's the incentive for them not to screw up royally?

[MicaelS]

40. Does that same attitude apply to Teddy Kennedy? n/t

[PinkyisBlue]

42. Ted Kennedy is not a governor.

And Ted Kennedy voted against Congressional COLA pay raises until the minimum wage was increased.

[MicaelS]

44. Not relevant

When you really think about it don't you want a governor that feels like he or she needs the pay check: that feels like they need to earn it?

What's the motivation for them to come to work every day?

Where's the incentive for them not to screw up royally?

Change that to:

When you really think about it don't you want a senator that feels like he or she needs the pay check: that feels like they need to earn it?

What's the motivation for them to come to work every day?

Where's the incentive for them not to screw up royally?

And it transmits the same sort of attitude, that if you have money, you shouldn't be an elected official. In as much as Kennedy is the darling of so many people here, I wanted to show the foolishness and stupidity of that attitude.

[piesRsquare]

41. The motivation?

Ahnuld looooooooooooves his power. He is BIG on power.

He is loving every fucking minute of this.

[Pale Blue Dot]

2. Governor(CA) orders layoffs, steep pay cuts for thousands of state workers

Source: San Fransico Chronicle

(07-31) 12:38 PDT SACRAMENTO -- Gov. Arnold Schwarzenegger, one month into a state budget impasse, today ordered the layoffs of thousands of state workers and steep pay cuts for most other state employees in an effort to save cash as California faces a multibillion-dollar budget deficit.

The state has been without a budget since the current fiscal year began July 1, while the governor and the Democrat-controlled Legislature work to come up with a spending plan to fill a $17.2 billion gap that would include $2 billion in reserves.

"Today I am exercising my executive authority to avoid a full-blown crisis and keep our state moving forward," said the governor, whose move was expected after The Chronicle and other news outlets obtained a copy of the order last week. "This is not an action I take lightly, but we do not have a budget, and as governor, I have a responsibility to make sure our state has enough money to pay its bills."

Cutting the pay of about 200,000 state workers to the federal minium wage of $6.55 an hour would save California as much as $1.2 billion a month, the governor's office said. Such workers would get regular pay plus back pay once a new budget is approved.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/07/31/BAEP122S2P.DTL&tsp=1

---

Over 225,000 workers have either lost their jobs or are now not making a living wage.

[hobbit709]

3. Well that should help morale and efficiency.

My attitude is "For minimum wage you get minimum effort"
Evidently the Governator is a believer in "Beatings will continue until morale improves"

[slackmaster]

13. The whole point is to get everyone pissed off and hassle their Senate and Assembly members

To get their asses in gear and work out a budget.

It's a shame to use the public employees as pawns, but the strategy is likely to work.

[atreides1]

27. But Until the Politicos do something

The workers get to suffer? Great plan!!!

[slackmaster]

30. Citizens will not tolerate the inevitable slowdowns, strikes, long lines at the DMV, etc.

It will get acutely ugly, then miraculously the legislature will work something out.

Just like it always does.

[benld74]

4. Don't know who was the better governor - Reagan or Aunuld

Both put CA in the toilet during their terms. At least Aunuld can't get elected President. We got that going for us as a country.

[mulsh]

5. funny how he never cites a code or law just bleats about a

vague "executive authority" to cut these salaries. The office of Governor in our state is not omnipotent, our state constitution runs to a number of volumes. I bet he could cite an applicable state code if one exists. I doubt that it does. I bet he has access to both state and private sector attorneys. those guys could probably find something applicable.

Never ever vote for anyone who had an R after their name. even one married to a Kennedy.

[Warpy]

6. So instead of going after the state's wealthy

he's going to make the revenue problem even worse by throwing people out of work or forcing them to try to live on minimum wage.

This time I don't hate saying "I told you so" because I did and the state deserves it.

(Just think, if he hadn't arranged a quid pro quo to let Enron off the hook in exchange for the office, he might have enough money in the state coffers to get through this)

[aquart]

20. He can't go after the wealthy unless the legislature acts.

And, since it's California, I'm not sure they actually have any power left that is able to go after the wealthy.

[Bozita]

7. $6.55/hr translates into thirteen grand a year ... before taxes

Prediction: more foreclosures, more repossessions in CA.

[Tempest]

8. The state comptroller says he won't follow it

And plans to continue paying employees at their current rate.

[notadmblnd]

9. is he cutting his pay to 6.55 an hour too?

[AlCzervik]

10. he already doesn't take the salary but he's still a dick!

[katty]

11. this is headed for court

[galileoreloaded]

12. There. is. no. money. none. all gone.

[AndyTiedye]

14. Because ENRON Stole It (With the Gropernator's Help!)

http://www.scoop.co.nz/stories/WO0310/S00064.htm

http://www.dissidentvoice.org/June04/Leopold0607.htm

http://blogcritics.org/archives/2003/10/05/172924.php

http://www.counterpunch.org/leopold08182003.html

[XemaSab]

15. And does this apply to state fire fighters?

'Cause they all deserve a lot more than that, and kids who are working jobs for the summer to pay for school are planning on making a hell of a lot more than minimum wage.

[littlebit]

17. No

it does not apply to fire fighters or police officers.

[olddad56]

36. the fire fighters from out of state, or the prisoners?

[Grinchie]

16. Gray Davis did this during the Enron Energy Crisis and was recalled by the Repug's

I doubt that could happen to the Terminator, but he's following in Gray Davis' footsteps for sure.

[suffragette]

18. State Controller John Chiang refutes Arnold's claims

and tells him: NO.

http://blog.cadem.org/partyline/2008/07/state-controlle.html

July 29, 2008 at 9:22 PM

Earlier today, State Controller John Chiang sent the following message to Democrats throughout California:

John_chiang When I received word that Gov. Schwarzenegger was proposing to use California's state workers as pawns in the budget battle by cutting their pay to the federal minimum wage of $6.55, I said civil servants should not bear the brunt of the budget stalemate.

Since then, thousands of Californians have joined with me to protest the Governor's proposed -- and needless -- order to slash the pay of California's public servants. I want you to know I will stand strong against the Governor's threats.

Show Gov. Schwarzenegger that you stand with me by signing the California Democratic Party's petition at www.cadem.org/supportcaliforniaworkers.

Forcing public servants to involuntarily loan the State cash by foregoing their hard-earned paychecks puts an untenable burden on our teachers, health care workers and those who provide critical public services. That is just wrong.

Requiring a cut in pay for public employees -- especially as they, like many of us, struggle with their mortgages and higher gas and food prices -- will not only cause significant harm to those families, but also irreparably impact our fragile economy by further eroding consumer spending. It hurts us all.

I thank the thousands of you who signed the California Democratic Party's petition supporting my call for responsible and honest management of our state finances. Your support will send a strong message to the governor to quit the political posturing and show real leadership in resolving the budget crisis.

www.cadem.org/supportcaliforniaworkers

Sincerely,

John Chiang
Controller
State of California

P.S. And if you haven't signed the petition already, please take a moment right now to do so.



Here's a link to Chiang's letter to Schwarzenegger, in which Chiang refutes Arnold's depiction of the situation and tells him he will not comply. It is a PDF.

http://www.sco.ca.gov/eo/pressbox/2008/08/ltr_to_gov.pdf

Looks to me like Arnold is trying to twist the Democrats' arms to get what he wants.

[anitar1]

43. Wasn't Ahnold supposed to straighten out the affairs of

California ?? They accused Davis of incompetence and people slobbered over the movie star and he was elected. Just what has he done for the state ? His deficit is much larger than Gray Davis's was. I have never heard him say anything of importance.

[aquart]

19. Steep? MINIMUM WAGE?

He's blackmailing the legislature. But, unless their pay was cut, too, they won't care.

[JeanGrey]

21. Now that Delta is charging fifty bucks for one checked bag,

how long do you think it will be before the baggage handlers are gone? Not long.

[HCE SuiGeneris]

22. Is Ahhhnold foregoing his salary?

[lonestarnot]

23. How is it that a pug is the gov. of CA again?

[napi21]

24. I admit I don't know much about Ca. except that it's BIG and has a

LOT of people! It also has quite a high sales tax, and there's a lot of money spent in that State every month. That's not even considering the various taxes all businesses pay quarterly (which would have been in July! Am I really supposed to believe that the State can't survive a month or two without a budget?

[slackmaster]

35. The state has no emergency cash reserves

That is one of the big issues being debated in the legislature. When tax revenues are strong, the state goes ahead and spends it all and bases its budget on the good times continuing indefinitely.

...LOT of people! It also has quite a high sales tax....

High personal income tax, high fuel taxes too.

We suck at budgets.

[olddad56]

25. Arnold is full of shit....and here is one reason why.

I'm a person who works part time for the state of CA. as a Retired Annuitant. Arnold's executive order suspends my job.... or so they would like you to believe. What they don't mention is that many of the RA's have already received exemptions and we will still work and still get paid.

The last two days where I work has been a hiring frenzy. Interviews and job offers to beat the hiring freeze that goes into 8/1. That means high paying jobs offered to a short list of unqualified applicants who will have those jobs until they retire or bail.

That is an inside look into how it is really working, while lower paid, truly part time employees, who really need the low paying job and health benefits get sacrafied to make Arnold look tough.

[tularetom]

26. That asshole has a wonderful sense of timing

We have a big ass fire going on here and there are like a bazillion firefighters on the job, a portion of whom are state employees. They are working 12 hour shifts trying to keep the fire from spreading to peoples homes and property. Learning that they are working for minimum wage should be great for morale.

Ahnuld titzengroper needs to remember how he got the job in the first place - a phoney baloney recall of his predecessor on trumped up charges. His act has really worn thin and it's time to show him the door.

[slackmaster]

32. Public safety workers are exempt from the layoffs and pay cuts

:hi:

[slackmaster]

33. Double-tap

:hi:

[bemildred]

29. Just resign Ahnuld, think of all the money that would save us. nt

[MasonJar]

31. California DUers, is the state wishing Gray Davis had never been recalled?

[slackmaster]

34. I haven't heard anyone say that yet

People are still pretty pissed off at Davis for his bad energy deals.

[olddad56]

37. Davis was a jerk, but he was set up. Arnold is worse...

If for no other reason than his 100s of Rethug political appointees that run agencies that are suppose to oversee the corporations that the appointees came from. The foxes are guarding the hen houses.

[slackmaster]

38. If Davis had taken Diane Feinstein's advice on the 2000 energy "crisis" he'd still be in office

She told him to let the market work itself out; that people would conserve when they saw their energy bills go up. She was right.

[cliss]

39. Minimum wage?

Whoa, watch the real estate market tank FOR SURE now in California.

This will be the nail in the coffin:smoke: