http://www.sacbee.com/2010/07/02/2864614/governor-puts-200000-state-workers.html
Executive Summary:
Since California has not yet passed a new budget and the state's deficit is in the billions, Gov. Schwarzenegger signed an order to limit hourly pay of state employees to minimum wage until a new budget is signed. Any additional wages will be paid in retrospect once that is accomplished. Six unions are exempt because they have already signed new contracts limiting pension benefits for new hires and increasing employee contributions to pensions.
The state Controller says he will not follow these instructions without a court order.
Opinion:
The sooner public employee unions realize that states are broke and can't honor the sweetheart deals they promised in the past, the better. There just isn't any more money to give them their insanely high yearly pension payouts or nearly free healthcare. They helped create this problem, now they should have to live with it. It looks like many of the union bosses are stubbornly refusing to agree to any reductions in benefits, hoping the economy will improve before they have to give in. Fat chance.
Is your state running a deficit? Check here:
http://www.cbpp.org/cms/?fa=view&id=711
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