Politicians react to state worker pay cut with critcism, defiance and calls for reform

California Gov. Arnold Schwarzenegger's issuance of an executive order cutting pay for 200,000 state workers down to federal minimum wage drew quick reaction from across the state's political scene.

Democrats denounced the move, while Republicans said the decision should put pressure on state legislators to approve a new state budget - without tax increases - that could restore normal pay for those workers.

"Republicans take our budget responsibility very seriously, and are committed to reaching a budget agreement as soon as possible so state workers are fully paid for their service to California," said Assembly Republican Leader Mike Villines (R-Clovis) in a statement. "We are continuing to advocate for a responsible balanced budget that gets spending under control, improves our economy and protects taxpayers."

His counterpart in the other state legislative chamber, State Senate Republican Leader Dave Cogdill (R-Modesto), also described the move as unfortunate, but said a budget containing several provisions Republicans have pushed for would prevent such problems in future years.

"The reality, highlighted by the Governor's action, is that California's budget process must be reformed.  It is the only way to avoid these types of drastic measures in the future," Cogdill said in a statement.

Those reforms include a spending cap for the state, establishment of a rainy-day budget to be filled in surplus years, and increased flexibility for employers in workplace issues.

But Democrats said Schwarzenegger showed a preference for the dramatic rather than the sensible, saying their budget proposal balanced the state's revenues and would have forestalled the governor's executive order.

Their proposal contained higher taxes on the wealthy, and would've probably lacked the votes needed for approval in the state Legislature. It has yet to be brought up for a floor vote in either chamber.

State Senate Pro Temp Don Perata (D-Oakland) said the state Senate would have a hearing Monday over the order. Assembly Speaker Karen Bass (D-Los Angeles) expressed disappointment over the governor's order, but said legislative Republicans and Democrats were making progress on a state budget for 2008-09, which is a month overdue.

"It is an unwise and unfortunate move to cause economic strife to public servants and their families who are working hard and playing by the rules," Bass said in a statement. "We are not going to let this decision get in the way of our mission, which is to deliver a budget that reflects the values of Californians."

Sacramento mayoral hopeful Kevin Johnson also weighed in, criticizing the move's effects on a city where a large majority of state workers reside.

"We depend on state workers more in Sacramento than anywhere else, and they should not suffer as part of a political process," Johnson said in a statement.

The move affects state workers, but not legislators and other top-level state officials. Services considered vital can be in some cases exempt, and the federal receiver overseeing the state prison health system said early in the day that workers under his purview would continue to receive normal salaries.

There was also no guarantee that Schwarzenegger's order would go into effect. State Controller John Chiang, a Democrat, released a letter to Schwarzenegger, a Republican, citing case law that Chiang said gave him the authority to continue paying those workers their normal salaries.

"In White v. Davis, this office took the position that due to technical limitations inherent in a payroll system that was developed more than 25 years ago, it was infeasible, if not impossible, to adjust payroll for the workforce to minimum wage during a budgetary impasses and, after the budget has been passed, to promptly restore the unpaid wages in a manner consistent with the law," Chiang wrote in the letter.

A court battle over how the order is implemented could be in the offing, but may not be resolved before a budget agreement is reached.

Schwarzenegger has previously said that the lack of a budget left him with no choice but to sign the order, to keep the state financially solvent.

""This is not an action I take lightly, but we do not have a budget, and as Governor, I have a responsibility to make sure our state has enough money to pay its bills," Schwarzenegger said in his statement announcing that he'd issued the order Thursday morning.

ALSO on PolitickerCA.com:

Perata lashes out at Schwarzenegger's decision to cut the pay of state workers