No Pay Cut… For Now
BUDGET DAY PLUS 27 -- Late word that Governor Schwarzenegger will not sign an executive order today to slash the pay of state workers down to minimum wage, but now intends to do so by week's end.
"Thursday marks the first day of the state pay period," said spokesman Aaron McLear in an emailed statement, "and Governor Schwarzenegger will use his executive authority on Thursday to prevent a cash crisis."
The governor has indicated his intention to suspend most of the pay for state workers until a budget is enacted is driven by estimates from Controller John Chiang that state government will run out of cash by late September without an August budget deal.
Chiang, however, remains adamant that he'll refuse to follow such an executive order, no doubt leading to a legal challenge over the constitutional obligations of both the controller and the governor. But that's a legal challenge that will wait... for now.
