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Arnold Slashing Pay for 200k State Workers to Federal Minimum Wage

by: Julia Rosen

Wed Jul 23, 2008 at 16:20:06 PM PDT


Yes, you read that headline correctly.  Federal minimum wage of $6.55 an hour, not California minimum of $8 hour.  The SacBee has this gut shot of a story.

Gov. Arnold Schwarzenegger plans to sign an executive order next week that will reduce pay for more than 200,000 state workers to the federal minimum wage of $6.55 per hour to preserve cash in the midst of a month-long budget standoff, according to a draft copy of the order obtained by The Bee.

Administration officials said the governor expects to take the action Monday.

How are these employees going to be able to pay for their groceries on $6.55 an hour, or fill up their car with gas, let alone pay their rent?  The short answer is they aren't.

This is going to result in a lot of employees needing governmental assistance for basic needs, not that the state has the money to help with that anyways at this point.  This is a crisis and this damn well better get some folks up in arms.

Here is the law that Arnold is using to justify this move.

He says that his action complies with a 2003 ruling by the California Supreme Court that made clear that without a state budget in place, federal labor laws require the state to pay most workers "either federal minimum wage or, for those employees that work overtime, their full salaries."

You have to assume there will be some lawsuits, most likely by the unions representing these workers.  The pay cut is not the only thing Arnold is doing.

The order would require state agencies to stop authorizing overtime for most employees.

The governor also plans to issue a hard hiring freeze except for state jobs "directly related to the preservation and protection of human life and safety." He also will suspend work for all retired annuitants, permanent intermittent employees, seasonal employees, temporary help workers, student assistants and some contractors.

The one group I know for sure that will be fired immediately are the seasonal employees at the state parks.  No longer will they be manning gates and working on preservation policies.  There have to be a ton of other agencies effected as well.  

This is obviously a breaking story.  If anyone has anything to add to what the Bee has up, please leave it in the comments.  We don't have a budget and this is a crisis.  This is exactly what the Republicans want to see, the government failing and getting smaller.  This is what happens when you have a two-thirds rule for both taxes and a budget.  A small minority can cause a whole lot of pain to a huge number of people.

Just shameful.

[UPDATE by Dave] Just to chime in, as I was typing this up myself.  This is intolerable and it aligns perfectly with the Shock Doctrine of taking advantage of a crisis to cause more economic dislocation and pain while rewarding the rich and connected.  The governor's budget plan is to literally create more working poor among a significant percentage of the work force.  

The lawsuits should begin tomorrow.  This is a breach of trust.  And if you think Arnold's poll numbers were bad before, wait until you see them after this stunt.  200,000 workers have a lot of friends and family.  What a scumbag.

UPDATE (Bob):  I agree with Dave, let the lawsuits start tomorrow, but let the process to recall begin Friday. The GOP does not value an honest day's work, that is why our Lame Duck Governor will destroy the lives of the people who work hardest for him while the Yacht Tax Loophole remains. Time for a Special Election to totally recall. Hope to see press releases from the CDP and any union that values work in 48 hours.

[UPDATE by Robert]: This comment by karyn1 on the SacBee article sums it up:

$6.55 an hour only amounts to $1048 per month. After my rent, that would leave only $218 left. How many of you can live on that? Hardly, am I a rich state employee. As a clerical, I am usually broke by the 10th of the month, and the other 3 weeks of the month I am barely getting by. SacBee comments

[UPDATE by Dave]: Speaker Bass weighs in:

"I don't believe the Governor would put public servants in the crossfire of this budget battle. But this action would speak to the need for all us -- including the Governor -- to negotiate a balanced, responsible budget that protects our schools and the safety net before we run out of cash."

The proposal on closing parks was just a game, but now we're talking about people's livelihoods.  Playing around like this is unacceptable.

...OK, so the Speaker just revised her press release by changing "should" to "would" in the first sentence, signaling that she thinks he's bluffing.  Why they would re-send a press release for that is kind of absurd, as the implication was already made.  I really hope this isn't the result of some talking-to from Arnold's office, or that this is all one elaborate kabuki, because 200,000 soon-to-be minimum wage employees are not amused.

Julia Rosen :: Arnold Slashing Pay for 200k State Workers to Federal Minimum Wage
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This is a body blow to the state's economy (8.00 / 5)
That is the aggressive framing we need to push. It is the last and worst thing a state sliding into recession needs. It will put small businesses and their employees out of work. And in turn it will worsen the state's budget deficit.

You can check out any time you like but you can never leave

yes (0.00 / 0)
The money that the minimum wage employees earn immediately gets spent and goes back into the state economy.  They have no room to be saving and storing it away.

These are the folks who can least afford the cuts.


[ Parent ]
your point (8.00 / 1)
about how they'll all need additional government assistance was cogent.  This will only INCREASE the state's budget woes.

[ Parent ]
Don't flame me but... (0.00 / 0)
But when I worked for a state agency and this policy was previously put into place, my bank gave me a monthly loan in the exact amount of what my pay was.  They kept the bulk payment from the state once the budget was signed.  Nothing changed financially for me or my state employee colleagues.

Legislative employees are currently not being paid at all and most banks and credit unions are providing the same loans.

This isn't to say 100% of employees are receiving them (for example you had/have to have direct deposit to be eligible) but things might substantively changed.  


Yes (0.00 / 0)
but last time they did IOUs.  That was ruled to be illegal, so they are just slashing wages this time.

[ Parent ]
How manyof the 200k even have banks? (0.00 / 0)
These are minimum wage employees living paycheck to paycheck and you are defending the GOP screwing them over because you once dealt with an interest free loan that had zero effect on your life other than a few pages of paperwork and a better credit score?


[ Parent ]
Well (0.00 / 0)
keep in mind that the 200k figure is every single state employee.  Even the salaried ones are getting $6.55 and no promise it will be made up to them later.

[ Parent ]
Correction (0.00 / 0)
new info.  The salaries will be back paid once the budget is in place, however that does not stop bills from coming due.  Plus loans cost money and arent that easy to get this year.

[ Parent ]
Shocking, Bob doesn't know what the fuck he is talking about (0.00 / 0)
1. Most of these employees will be eligible for the same loans.

2.  How many of them have banks?  Who the fuck are you kidding?  The AVERAGE salary is $55K.  How many people you know making that kind of money don't have bank accounts?  Weak talking point, even for you, Bob.

3.  Credit scores aren't affected by this.  

I never defended the practice.  Nice straw man.  People will be hurt, no doubt.

I just read The Thumpin'.  Bill Burton described you perfectly.


[ Parent ]
Is your first name dirty? (0.00 / 0)
1. Most. Of 200k. Would live to see a number on how many.

2. What is the lowest salary? How many?

3. You may be right, I heard you could structure it so it could be enhanced.

You did defend. When the GOP does something awful and you don't fight back but explain away the size of the disadvantage you are in effect defending.

If you are going to call me a pussy, just do it. Don't hide behind the mute button or inuendo as then your slur is not just sexist, but also ironic when it comes to the connotation you trying to achieve.


[ Parent ]
why wouldn't credit scores be effected? (0.00 / 0)
I mean, if employees are forced to take out a loan against future salary ... it's still a loan. Why wouldn't a bank report it to the credit reporting people?

[ Parent ]
Yet I guarantee (0.00 / 0)
that sometime next week I'll encounter a story in the national news media that refers to him as a moderate.

ouch, Bass really blew on the release (0.00 / 0)
The GOP is celebrating tonight as state workers get to lose sleep all night wondering how they will meet ends meet while Democrats don't fix the part of the release that the Speaker doesn't think the GOP would hijack government despite the fact that is exactly why we don't have a budget.

What a disaster.  


Speakers press release... (0.00 / 0)
the updated one was sent literally minutes later because of a typo. Trust me: Speaker less than happy about this move.

I really can't see how this (8.00 / 1)
solves one thing.  This will only make those who are barely getting by have to scrape even more to meet their basic needs.  

Is he going to slash his salary to $6.55 an hour?  

I just can't even begin to express how upset this announcement made me.  People will have less to spend and it will hurt revenue even more.

OC Progressive
Progress, not perfection!


Hostage crisis. (0.00 / 0)
This has become a hostage crisis, not a budget negotiation.  He's probably hoping to split the Democrats, but instead he's probably going to unite everyone against him.  Unbelievable.

Worst. Governor. Ever. (8.00 / 1)
He has repeatedly refused to exercise leadership - and when he does decide to take action it's at the expense of working people who aren't to blame for this crisis.

It's fucking despicable.

You can check out any time you like but you can never leave


[ Parent ]
New Heroes ? (8.00 / 1)
Look for Treasurer Lockyer and Controller John Chiang to try some hail marys as they determine what moves they can do.  Heard that Lockyer may ignore the order and keep staff in place, keep paying, etc.  The Controller writes the checks and the state may have enough money to pay folks for a while longer.  Who is really in charge of the state's money ?  We'll see...  And I agree with post that folks will rally around and condemn Governor, this could really backfire on him.

nice (8.00 / 1)
That's what I'm talking about. We need to go big and shove this down the governor's throat. Props to Dems who actually stand up.  

[ Parent ]
Chiang and Lockyer are big freedom fighters. (n/t) (0.00 / 0)
[ Parent ]
ADOPT a red/purple A.D. candidate and let's flip this thing.. (0.00 / 0)
Ok guys, this story repeats year after year, and the only way to NOT be in this situation is to GET RID of enough of those rotten Republicans who have stuck their heels in and refuse to allow the state to function properly.

The present Field Poll is showing about a 30+ point lead of Obama over McSame. If that comes anywhere near holding that level in November, we COULD be winning any number of the closer districts IF the resources of the party would be DIRECTED TOWARD THEM!!!

One of these winnable ones close to LA is the 37th AD out in Thousand Oaks/Simi/Moorpark/Filmore currently represented by Audra Strickland, whose husband Tom (now running against our wonderful Hannah Beth for the State Senate in the 19th SD)transferred HIS campaign funds to the little wife and bought her way into office.

Betcha can't name one positive thing she's done for the district!!! Many say she's hardly ever there, but stays in Sacramento most of the time. Those of you in the neighborhood can work on verifying that.

Ferial Masry, the Democratic winner with 65% of the vote, knows the district because she WALKS the precincts and meets people face to face. She's build her contituency over the last 2 races and is poised to TAKE THIS DISTRICT to the Democratic column IF she gets the help and support she needs to win. So, what about it CDP? Want a winner? Want a REAL MAJORITY? Then stop fiddling around and COME INTO these marginal districts and wipe out these obstructionist Republicans. Send them packing.///


Ferial--Dem winner in the PRIMARY, that is...who has built her constituency (sorry typos) (0.00 / 0)


[ Parent ]
Total Recall... (8.00 / 1)
NOW can we talk about recalling Ah-nuld's sorry @zz?

Ah-nuld couldn't have been re-elected without Dems voting for him. This is what you get for voting for a Rethug. Even for a so-called "moderate." This is what you get.

After 7+ years of Bush, we are all suffering from "accelerated decrepitude."


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