With the lack of new budget for the fiscal year 2008-2009, Gov. Arnold Schwarzenegger has threatened to cut the salaries of almost 200,000 state employees to the federal minimum wage of $6.55 an hour. California’s minimum wage is $8.00 an hour. My question is, what is this going to do to the housing crisis in California, one the states most hurt by the mortgage meltdown?
The problem is that state legislators failed to turn in a “decent” budget proposal for the Governor to sign. The Governor says he has no other option but to cut the salary of
at least 200,000 employees and to fire about 22,000 part time employees and to put a freeze on overtime pay… ah!!! Yeah… but what about the people with mortgages
Mr. Governor? Are you going to send a letter to their lenders explaining to them that the legislators…. Blah, blah, blah… didn’t turn in a budget proposal, Blah, blah, blah????
An image is worth a thousand words. Look at this picture from the LA Times, people protesting outside the Ronald Reagan building in downtown L.A.
Rob Gauthier / Los Angeles
If the governor makes his threat a reality, he will sign an executive order on July 31st. and it will be effective starting August 1st. Once the new budget is signed the salaries will be retroactive.
Yanni Raz |
