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Schwarzenegger’s Pay Cut Stunt Not Very Popular Judging by Who is Saying What and Those Who Do Not Want to Talk About It

frankrusso-small.jpg By Frank D. Russo

Democrats are coming out swinging at Governor Schwarzenegger’s Executive Order signed yesterday cutting the salaries of over 200,000 California state workers to the Federal minimum wage of $6.55 per hour. Responses yesterday were immediate, loud, and unanimous in their denunciation of this as a stunt that is not going to solve the budgetary crisis that California finds itself in— that it is hurting innocent bystanders, at best is distracting from the real work that needs to be done on the budget to resolve a $15 billion deficit, and may in fact make matters worse by exposing the state to extra liabilities.

In contrast, comments by the state’s elected Republicans were few and far between and can best be described as perfunctory. For instance, the Senate Republican Caucus website has this lone statement by its leader, Dave Cogdill:

“The Governor’s action today underscores the severity of the state’s fiscal situation. The reality, highlighted by the Governor’s action, is that California’s budget process must be reformed. It is the only way to avoid these types of drastic measures in the future. Republicans are working to pass a responsible budget - one that will reform our system without hurting taxpayers or the economy.”

The Democrats, led as much by anyone as by State Controller John Chiang who laid out in a letter to the Governor why he will not comply with his order and challenged the assumption that the move had anything to do with the real budget situation.

Indeed, the Governor has been blasted for this by editorials, columns, and news accounts up and down the state. If these were movie reviews, the show would have to be canceled and maybe released on DVD’s to be found in the discount bin.

Peter Schrag, a longtime observer of the California scene and a former editorial editor of the Sacramento Bee, unloaded on the Governor yesterday that:

“Arnold Schwarzenegger's professed intention to reduce the pay of 200,000 state workers to the federal minimum wage until there's a new budget doesn't quite fall into the "stop me before I kill again" class, but it comes close.

“It's not a strategy, either fiscal or political, but more like a cry of desperation. If they find the suicide's corpse on the floor, they'll say he really didn't mean to do himself in, he was just pleading for help.”

His column was passed around the state Capitol and a number of emails forwarded it on to others describing it as a “must read” item. One of them, by a veteran legislative representative to clients, started off: “For this morning's budget update, we couldn't possibly offer a better analysis than the Bee's Peter Schrag. Read and weep.”

Senate President pro Tem Don Perata minced no words:

“This regrettable action undermines the state’s shaky economy, inflicts hardship on 200,000 hard-working Californians who have nothing to do with the state’s budget stalemate and reduces services to everyone who visits a DMV office, expects safe highways or needs other state assistance.”

“Cutting state services reduces the quality of life for all Californians; that’s why the Democrats have a plan that avoids gutting education, health care, higher education and transportation by balancing the budget with a mix of cuts and new revenue.”

“The Governor’s suggestion that the Legislature did nothing on the budget prior to May 14 shows how little attention he has paid to this process. The Senate held 67 subcommittee and full budget committee hearings going through the Governor’s proposal line by line. In mid-February, we took $7 billion in bipartisan budget actions – enough to solve half of the state’s deficit.”

“On May 14, the Governor proposed a revised budget with a $7 billion hole in it. The Budget Conference Committee fixed this by balancing the budget in six weeks.”

“If the Governor disagrees with the conference committee’s plan for filling the hole in his budget, we’re open to his suggestions on possible alternatives.”

“On Monday, the Senate will hold a hearing examining the far-reaching impact of the Governor’s executive order.”

His counterpart, Assembly Speaker Karen Bass, described the Governor’s action as “disappointing…unwise…and unnecessary.” She said the pay cut order from the Governor will cause economic strife to public servants and their families who are working hard and playing by the rules.

The hearing that Perata referred to is one that is scheduled for Monday morning by Senator Dean Florez, whose Governmental Organization Committee has asked Schwarzenegger himself to appear and explain the rationale for his action. Through a press spokesperson, the Governor indicated that the answer to Florez’s questions would be answered in the Govnernor’s remarks before signing the Executive Order and in the order itself.

The hearing will go on, with or without the Governor and other witnesses have been called. Understand the dynaimcs here. Florez had just inside the entrance to his capitol office a framed picture from Governor Schwazenegger addressed to him as “my workout buddy.” I don't know if it is still there and if they are on friendly terms.

Florez is known for his dogged style of asking questions and following up on answers seeking the details and getting to the bottom of what is behind initial responses and press fluff statements.

If Florez’s statement yesterday from hi district office in Fresno is any indication, this is going to be a riveting hearing. “The Governor has given up and thrown in the towel, showing his true weakness as a negotiator. It was certainly sad to watch him shirk his responsibility – but it’s not surprising; he’s been doing this for quite some time.” Ouch!

He repeated this theme on the Fox News site in his district yesterday and went even further:

"It means that he's kind of thrown in the towel. He's given up. This is what you see large corporations do when they run into bankruptcy... the first thing they do is fire the employees.

"These are real workers... they are very much essential and for the Governor to just one day because of a cash crisis in his mind say, 'Today I believe they are unessential' tells me that he should have been thinking of that way back in January when he put his budget out."

While the ink was still wet on the Governor’s order, John Garamendi formally announced on the Capitol steps that he is a candidate for Governor of California in 2010 and had these words on this issue writ large at the beginning of his announcement:

“Why announce now?

“California is not a movie set. Gridlock is not acceptable.

“This is real life, real Californian’s are hurting- they have mortgages to pay, kids to feed – stunts like pay cuts to $6.55/hr don’t solve problems. I promise you this - when I’m governor no one leaves this building until there’s a budget on my desk. Senate and Assembly leaders will be in my office every day – all day!

“We’ll hammer it out, egos will be bruised and there will be shouting and probably insults, but by god- no one goes on vacation until the work is done. My dad had it right – you don’t leave the work until the fence is fixed - You can’t have cattle on the highway. I pledge to all Californian’s that when I’m elected governor of this Golden State not one moment will be lost in the hard work to get it done. The fence will be fixed, the cattle will not be on the road.

“Yes, it’s hard work, but the pay is far more than $6.55 an hour- Earn It!

“It’s time for a governor who is a work horse.”

Notice how his statement, written before Bee columnist Schrag, fits in with Schrag’s overarching theme of our present Governor who is not doing the real work needed to cinch up a budget deal.

There are even signs that some Republicans trying to distance themselves from the Governor’s actions. Republican Greg Aghazarian was quoted in the Sacramento Bee saying:

"While I appreciate the Governor's leadership on this budget crisis, I cannot support reducing the salaries of our state employees to minimum wage.

“If our state workers had the power to pass a budget, then it might be appropriate to hold them accountable, but that's not where the responsibility lies according to our State Constitution. I cannot predict when a budget will be passed, but I do know this, when it does happen it will be because we worked to achieve bipartisan solutions.

“I understand what the Governor is trying to accomplish with this action, but I must respectfully disagree and urge the Governor to reconsider his executive order."

It did not escape the notice of political blogger David Dayen that there is a political angle to this. He astutely analyzed the situation in a posting, “Fraying at the Edges,” in this context:

“Now, Aghazarian is talking out of both sides of his mouth. He's trying to win a Senate election against Lois Wolk in SD-05, and he wants to be seen as some kind of moderate when his record suggests the opposite. But the fact that he's gone off the reservation means that there's a lot of pressure to come out against the Governor on this one, putting him alone on an island of his own making. It's important to keep pounding away and make him completely unpopular and unable to help his party in the fall as a result of this stupid, heartless action.”

Assembly Republican Leader Mike Villines, was quoted in the media as denying responsibility for the Governor’s actions: "I think that it adds pressure. I do. I believe that none of us wants to see something like this. Nobody wants to see people that are being affected that, frankly, don't have a part in the decision process."

Seems like few want to be part of the Governor’s defenders on yesterday’s actions. More like "run away" in a Monty Python skit.

Posted on August 01, 2008

Comments

What can we they people do to help move this process along? The only people's pay that should be affected are those thats job it is to pass a budget. The people affected are those that can least afford it. You sure don't hear people saying Arnold for President anymore. The legislature needs to be working 24/7 to get a budget passed. They need budget reform, if a private company did this annually they'd be out of business. As Mary Matlin once said "feed them all a pot of beans and don't let them leave them until there done." Those may not be the exact words but you get my drift.

Posted by: Sonia V. HIll at August 1, 2008 09:07 AM

What can we they people do to help move this process along? The only people's pay that should be affected are those thats job it is to pass a budget. The people affected are those that can least afford it. You sure don't hear people saying Arnold for President anymore. The legislature needs to be working 24/7 to get a budget passed. They need budget reform, if a private company did this annually they'd be out of business. As Mary Matlin once said "feed them all a pot of beans and don't let them leave them until there done." Those may not be the exact words but you get my drift.

Posted by: Sonia V. Hill at August 1, 2008 09:07 AM

This is a MUCH needed move. I applaude the Governor Schwarzenegger’s minimum wage cut. People constantly say, "the minimum wage is not enough to maintain a standard of living". Well, guess what? Minimum wage isn't intended to maintain a regular standard of living. It's meant for people who are starting out at the age of 18. It's meant for people "starting out" in the work force. People are not suppposed to make a career out of the fast food industry. That's why they're supposed to go to college or a trade school & find a decent paying career. If they choose that they don't want to go to school, then it's much harder for them to get a decent paying job however it's still possible. Point is, by raising minimum wage to a much higher level, all it is doing is causing the people to have more reason to stay at a "dead end" job & not be motivated enough to pursue more out of life & have a much more fulfilling career.

Posted by: Roy Rodriguez at August 1, 2008 02:01 PM

Roy: In your zeal to spout your opposition to the concept of a minimum wage, I think you have missed the boat. These are folks who have been earning above the minimum wage--most of whom are not starting work. Your Horatio Alger advice to get an education and pull oneself up by the bootstraps is one that many of these workers have already taken and many have degrees, etc. And these are folks who took jobs with a contract to work at a certain wage and who otherwise would have looked elsewhere. All of a sudden, with no bargaining, no contract, and no warning, they are reduced to a wage below that of those who you disparage who work flipping burgers.

Posted by: Frank D. Russo at August 1, 2008 04:20 PM

Frank, I think you misunderstood most of my point. I never stated there isn't a need for a minumum wage. I feel there should be one. The $6.55 is more than enough for people in high school & those starting out in the work force due to lack of experience. They want to earn more, then they should work toward "earning" a raise, not receive a government mandated raise. On a sidenote, I never meant to disparage "burger flipping jobs". Just meant it as an example. In fact, I have had a job where I made the minimum, it was when I started out in the field related to my overall career plan. After 2 years there, I started making over $13 an hour. Now I'm almost finished with school & will have many more options open to me. That's the main point I was aiming at. Why should people fight for & settle for the minimum when they can work & strive for more???

Posted by: Roy Rodriguez at August 2, 2008 10:29 AM

Roy, your comment seems very strange. It appears that you think that what the Governor has done is lower the minimum wage. That is not what he did. What he did do is suddenly cut the wages of adults, many of them with children, mortgages, etc., who were making much more than minimum wage, to the federal minimum of $6.55.

It just leaves the impression that you commented vigorously on this wage-cut issue without any understanding of what it is actually about or maybe even really reading Frank's post. ??? Puzzling...

Posted by: logos at August 2, 2008 02:09 PM

I grew up a native Californian and I remember the fights through the years with the budget. When California dumped Gray Davis for this really popular actor, I said to myself "Folks. Give yourselves a few years and the same budget balancing acts will have to be faced." Frankly, this executive order is exactly what you can expect from a pyramid mentality. People really aren't as exponentially different as the myth builders would have us beleive. I say "Hey Californians! You got just exactly what you deserved, for sheepishly accepting the same sheepish mentality that posesses people to pay over $1000.00 for a single ball game." I'm not saying we can't aspire to be champions and that there aren't champions among us who really ARE the real thing. What I'm saying is, stop being %$#&@ sheep before our species starts to die from all your bleeting lock-step adorations. Use your OWN brains for Pete's sake and pass a budget that doesn't walk on the sheep. They don't like it.

Posted by: James Peterson at August 26, 2008 01:20 PM

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