Schwarzenegger cuts state worker pay

SACRAMENTO, July 31 (UPI) -- California Gov. Arnold Schwarzenegger Thursday signed an order cutting the pay of most state workers to the federal minimum wage of $6.55 an hour.

The Los Angeles Times reported that the move is aimed at ensuring the Golden State has enough cash on hand to pay its bills until the Legislature approves a state budget.

The budget was due July 1. Legislative leaders and the governor are in negotiations.

Schwarzenegger said the state's financial situation "leaves me with no easy choices," the Sacramento (Calif.) Bee reported.

"I have a responsibility to ensure that our state has enough money to pay its bills. This is not an action that I take lightly," the Republican governor was quoted as saying.

Under the plan, once a state budget is adopted, the roughly 200,000 state workers affected by the plan will receive their full back pay, the Times said.

State Controller John Chiang, a Democrat who is responsible for paying state employees, has said he would not implement Schwarzenegger's executive order.

He has said the state has enough money to pay its bills without the pay cut, Legal Newsline reported.