Friday, July 02, 2010

California At the Abyss - Aahrnold Wants State Employees on Minimum Wage

We tend to think of America's debt crisis as Washington's problem but a lot of state governments are as deeply in the red - or worse. Arizona and California are real fiscal freak shows right at the moment.

The latest spectacle comes from California where outgoing governator, Arnold Schwarzenegger, has ordered state Controller John Chiang to put 200,000 state employees on minimum wage - bread and water - this month. That would drop them down to the federally mandated $7.25 an hour.

Chiang says he won't do it without a court order.

Six bargaining units, representing 37,000 workers, that have already folded to the governor's concession demands won't be affected. The big six holdouts, however, could be in for a rougher ride.

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