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Governor Schwarzenegger Considering Order to Lower State Workers Pay

Schwarzenegger Administration officials have said the governor could sign an executive order as soon as Monday to lower state workers' pay. Jenny O'Mara has more.

Governor Schwarzenegger Considering Order to Lower State Workers Pay

Schwarzenegger Administration officials have said the governor could sign an executive order as soon as Monday to lower state workers' pay.  Jenny O'Mara has more.

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Administration officials say lowering workers pay to the federal minimum wage is a way to build up cash in the face of a shortage. They insist it's not a ploy. But others say it's really a tactic to light a fire under budget negotiations.  Political Analyst Barbara O'Connor with Sacramento State University says it's fairly common in the business world.

O’Connor: "I mean it really is kind of a classic business case, where you want people to come off the dime and they're so entrenched that they're not showing any movement."

The order would affect about 200,000 state employees. O'Connor says the anger already generated among workers is creating heat that could bring the budget deal together. If the Governor signs the order it's doubtful it would go into effect right away. State Controller John Chiang says he won't implement it and the legislature's legal adviser says the Governor has no power to force him to do so.