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.
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