Six months. That's how long State Controller John Chiang says it would take his office to comply with the Governor's Order to reduce workers' paychecks to the minimum wage. Chiang told a legislative committee Monday it would take months to readjust workers' paychecks because the system is so antiquated. Schwarzenegger has said the state needs the cuts to keep from running out of cash in the absence of a state budget. But Chiang says that's not true.
Chiang: “The Governor's off. He really ought to focus on getting the budget signed. We have sufficient cash reserves to make all state obligations through most of September. We have the cash borrowing in place. We might have sufficient funds to go into October. This executive order was issued unnecessarily.”
Chiang maintains he will not enforce the Governor's Order and is prepared to fight Schwarzenegger in court. Last Thursday Governor Schwarzenegger signed an Executive Order reducing some 200,000 state workers' pay to the federal minimum wage and laying off 10,000 temporary workers.
