Saturday, July 17, 2010


Earlier this month I talked about Gov. Schwarzenegger's plan to force 200,000 state employees to take a pay cut to minimum wage until the state got a budget in place.  State Controller John Chiang refused, saying the state's antiquated computer payroll system couldn't handle the change.  Yesterday, a judge sided with Chiang.
Sacramento County Superior Court Judge Patrick Marlette today denied Gov. Arnold Schwarzenegger's request to immediately compel State Controller John Chiang to pay state employees minimum wage.

The denial means there will be a status hearing on July 26, with a full hearing sometime in August, but Marlette's ruling is a boost for about 200,000 state workers, who were facing paychecks for $7.25 an hour for the July pay period. Chiang has said he would issue full pay unless the legal process went against him before July 22, the cutoff to send payroll to the check printer.
The battle's not over yet, there's still no budget in place in California and there's probably not going to be one for a while.  It's the fact that Republicans believe that the best thing to do to help an economy suffering from a staggering lack of demand and facing a deflationary death spiral is to do everything they can to cut wages for state employees as sort of an anti-stimulus package that bothers me the most.

Is he trying to drive these folks out of state government and into the unemployment line?  Is he trying to drive them out their homes?  Is he trying to drive them out of state, period?  Can anyone explain to me how this actually helps the economy of California in any way?  Wouldn't paying wages to California state employees so they turn around and spend it in California to buy goods and services from California taxpayers be one of the most direct consumer spending stimulus vectors the state could use to boost the economy?  Why then would you want to turn that spigot off?  Who does that kind of thing?

Oh yes, Republicans would.  Even "moderate green Republicans" like Arnold there.

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