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Governor Schwarzenegger has made good on his threat to fire part-time workers and cut 200,000 full-time salaries down to the minimum wage. At the same time, Democrats and Republicans are working on plans to balance the budget by taking money from city and county governments. Are political leaders once again putting off the day of reckoning?

Producers:
Christian Bordal
Dan Konecky

Making News Schwarzenegger Drops State Employee Pay, Fires 22,000 Temps

The Department of Motor Vehicles has cut waiting times in half by hiring part-time workers. Today, Governor Schwarzenegger ordered those workers laid off. He also ordered that some 200,000 full-time salaried state workers be cut back to the federal minimum wage. As he did on this program last week, Controller John Chiang says he'll defy the Governor and send out checks as usual at the end of August.

Guests:
Matthew Yi, Capitol Bureau Reporter, San Francisco Chronicle

Main Topic The Continuing Saga of the State Budget

Governor Schwarzenegger has made good on his threat to fire part-time workers and cut 200,000 full-time salaries down to the minimum wage.  As that battle rages, Democrats and Republicans reportedly plan to help balance the budget by taking money from city and county governments.  The money will have to be paid back in three years—with interest.  But the borrowing means cuts in the meantime.  We look at the consequences of cuts at the DMV and other agencies. Are political leaders once again putting off the day of reckoning? When will taxpayers be asked if they're willing to pay for the education, medical care and other services they demand?

Guests:
Ken Hunt, City Manager, City of Fontana
Herb Wesson, Los Angeles City Councilman
Stephen Levy, Center for Continuing Study of the California Economy

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