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Schwarzenegger Proposes Forcing State Employees to “Loan” the State Money

By Randy Bayne
The Bayne of Blog's California Notes

Governor Schwarzenegger is using the state’s employees as lowly pawns in his attempt to force a budget agreement. Had he been interested in an on time budget, Schwarzenegger would have submitted one of his own that the legislature could pass, instead of the joke budget he did propose. He also would be working much harder to get his own party’s legislators to agree to a budget. He did neither, and now wants to push legislators to a budget agreement by going after a constituency that has enormous political influence.

State employees didn’t create the current budget mess. Yet, it is state employees that are being forced to, as State Controller John Chiang puts it, “involuntarily loan the State cash by foregoing their hard-earned paychecks.”

Chiang’s full statement is below.

“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 other Californians, struggle with their mortgages and higher gas and food prices – will not only cause significant harm to those families, but also irreparably impact our economy by further eroding consumer spending.

“I have made it crystal clear that we have, and will continue to have, sufficient cash to make all payments, including state payroll, through September. Cutting workers’ salaries will do nothing meaningful to improve our cash position or help us make our priority payments.

“This is a cynical attempt by a governor who has spent the past few weeks going up and down the state criticizing others for political posturing. Such an executive order is unnecessary and nothing more than a poorly-devised strategy to put pressure on the Legislature to enact a budget.

“As the Supreme Court has never addressed the legality of withholding full salaries versus paying minimum wage, the governor’s proposed executive order would only invite more extensive and expensive litigation. Worse, should the courts find that withholding full pay is illegal, the State will be liable for treble damages.

“I will urge the Governor to rethink his proposal and work with us to ensure we manage our state finances in a responsible, realistic and honest manner.”

A spokesperson for Chiang said the Controller would ignore the governor’s order, likely forcing a court battle.

State Senator Dean Florez questions the Governor’s wisdom in taking state workers hostage.

“I don’t think it is wise for the governor to use working men and women as hostages for the state budget,” Florez said. “I think it shows weakness on his part as a negotiator. The men and women who do the hard work that keeps our state running deserve their full pay.”

I’m with you Dean. I’m constantly questioning the Governor’s wisdom.

Randy Bayne is Chair of the Amador County Democratic Party. This article originally appeared in The Bayne of Blogs and is published with the permission of the author.

Posted on July 24, 2008

Comments

Here we go again! Every time state employees start to have a little pride in their position and start showing some incentive............BAM
There fortunately are more dedicated over worked employees than sliders, but it seems that every time we get them moving in the right direction the Governor and his inability to work on getting an approved budget fails. The state workers are always the whipping post. Perhaps if those passing the budget had their per diem and salary cut until they completed their task.........just perhaps it might occur in a more timely manner.

Posted by: Glenda at July 24, 2008 10:32 AM

I am all for it, as a business owner that does business with the state, I do not get paid until a budget is passed. However those state employees still call for sevice and supplies. Let them feel the pinch too.

Posted by: David at July 25, 2008 07:25 AM

Being a state employee and a student at a cal state. I have been dealt a double blow. No
financial aid for school and only getting paid $6.55 an hour working a 20 hour work week, no way to pay for it out of pocket. What am I to do??? >:O :(

Posted by: Disgruntled at August 9, 2008 12:07 AM

As one of California's invisable employees [not a firefighter, police officer, teacher or other of the worshipped few]I am tired of being abused by Arnold and his crowd ! I am just the lowly guy that keeps the air conditioning and heat on in one of the state's many high rise buildings [IUOE Local 501]. We come to work every day to make the wheels turn the best we can given the appalling leadership we have ! I say we all go AOL next month and see how well they do without the REAL people in this organization...E.B.

Posted by: Engineer Bill at August 11, 2008 09:10 AM

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