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July 9, 2010 (Sacramento ) State Controller John Chiang has filed a lawsuit in Superior Court to block Governor Arnold Schwarzenegger’s order that would reduce state workers’ pay to the federal minimum wage, $7.25 an hour. The decision could determine whether 200,000 state workers ranging from DMV employee workers to Cal-Trans highway workers will face pay cuts of two-thirds or more of their salaries in some cases.
Previously a District Court of Appeal ruled that the Governor’s order was legal since the Legislature has not approved a budget. The budget remains gridlocked because the majority party (Democrats) have refused to approve a budget with more deep cuts in vital services (including the proposed elimination of in-home care for seniors and elimination of the Cal-Works program), while the minority party (Republicans) have refused to approve alternative budgets proposed by Democrats that would include revenue increases such as a wellhead tax on oil drilling or an increase in the tax on alcoholic beverages.
Over 1,000 caregivers gathered in Sacramento last month to protest against the Governor’s proposed budget cuts, which would harm an estimated 150,000 frail senior citizens and may force many into nursing homes. Details: http://www.seiuca.org/
Chiang has said his office’s computers are not prepared to deal with the changes of slashing pay, then restoring it as required by law once a budget is eventually approved. He has further argued that cutting some 200,000 state workers pay will only make the state’s economy worse.
The Service Employees International Union, the largest union representing California;s state workers, greed with Chiang. Many state workers could lose their homes or if pay is cut dramatically, fueling the recession. The union has also said it negotiated an agreement last year that would have saved the state some money, "but the governor walked away from that deal,” AP has reported.
The Governor remains adamant that Chiang should carry out his order and has said he will fight the battle in court.
For details on the lawsuit, see: http://blogs.sacbee.com/capitolalertlatest/2010/07/controller-sues-to-block-gover.html
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