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California OKs Taxinator Plan to Pay State Employees Minimum Wage

California OKs Taxinator Plan to Pay State Employees Minimum Wage

Courtesy of Jr. Deputy Accountant 

The state has until the end of the month to come up with a budget plan or will be forced to pay thousands of state employees minimum wage ($7.25) until it does. While some might argue our state employees could have used a pay cut quite some time ago and may be partially to blame for our budget troubles, I’m not sure this is the way to go about fixing our broken budget. If and when Sacramento does figure out a budget, state employees will be due back pay. For now, however, it’s looking like a rough summer for some.

LA Times:

A state appeals court ruled Friday that Gov. Arnold Schwarzenegger can reduce state workers’ pay to the federal minimum wage when the state budget is late.

The ruling comes a day after the governor ordered the pay of nearly 200,000 state employees to be reduced to $7.25 an hour until a budget is passed, but State Controller John Chiang, who issues the paychecks, has said he would not obey the order.

The ruling by the 3rd District Court of Appeals centers on a 2008 case, when during a similar budget impasse Schwarzenegger ordered state workers’ be paid the federal minimum wage.

John Chiang obviously doesn’t want his house burned down but Schwarzenegger could care less, before long he won’t have to worry about any of this crap and will be getting fat on the ranch far far away from Sacramento and all the drama that comes with. 

 


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  1. Hang on Phil, the house is burning down already.   
    You fail to mention that unions like the CHP which did negotiate a new contract are not affected, only those who have refused to budge.
    So perhaps it would be more accurate to say John Chaing is beholden to public unions whose refusal to take even the tiniest responsibility for their participation in CA’s insolvency constitutes letting the house burn down around us all. 
    And, Phil, does living within ones means really constitute some kind of extreme austerity?
    Here in San Francisco we are nearly bankrupt like so many other over spending cities even though we have the highest per capita tax revenue.  Clearly the solution is not more taxes.  When our oversized public union pensions start coming due we are doomed.  It is typical for a union employee to be granted all the overtime he can handle in the last two years before retirement to artificially so he or she can retire at 120% of their salary.  This cheating of the taxpayer is considered a "right".  These salaries are often well into 6 figures … at 55 for life with unlimited health care. 
    Some of us here are undertaking the radical step of circulating a petition to try and get a measure on the ballot suggesting the radical notion that public employees pay a grand total of a whole whopping, terrible and egregious 9% for their health care and pensions.  Now if someone came to me and offered to pay all of the health care for my entire family AND pay me a full pension at, or above my current salary starting at 55 years of age and all I had to do was kick in 9% of my salary I would be dancing in the streets!  I would not be bitching and moaning, or even have the gall to declare that taxes should be raised on my fellow Californians, nearly 20% of whom are partially or completely out of work, without healthcare, any assets left and no pension.  I certainly would be saying people clearly didn’t care while they got fat on a ranch far away.   
    Public union workers have been granted pensions and health care benefits that even the majority of members of this site can’t afford and they will bankrupt us yet.  
    As a final comment, why is it that when unions finally agree to some small concession it always seems to only affect those at the bottom of the payscale, the new employees, not those earning 50 or 100% more at the top? I have no sympathy for those who impoverish the next generation to enrich themselves.  
    Mike Farr