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State Worker Pay Cuts

Sacramento, CA — State workers may have their pay cut to the federal minimum wage if lawmakers don’t pass a budget soon.

The Associated Press reports that the Schwarzenegger administration plans to instruct the State Controller to reduce wages to $7.25 per hour for the July pay period if there is no budget agreement. The Governor says furloughs are also a possibility.

The threat is intended to shakeup lawmakers and encourage them to pass a budget.

California faces a $19.1 billion budget deficit for the fiscal year that starts July 1.

If the Governor proceeds with plans to cut wages to $7.25 an hour, it is expected to be challenged legally.

Written by bjhansen@mlode.com.