Schwarzenegger Threatens Minimum Wage for State Workers

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It's more than three weeks into the new fiscal year, but the state legislature with Democrats in the majority has not passed a budget. Failure to meet the constitutional deadline is nothing new, but this year there's a revenue shortfall of $15 billion. Governor Schwarzenegger says it's too expensive to borrow the money to keep going, so he has a proposal to defer a billion dollars in spending a month: cut the pay of some 200,000 state workers down to the federal minimum wage. They'd have to get by on $6.55 an hour until the budget was passed.




Warren Olney