California Workers Sue Governator

Critics say another crisis looms

(NEWSER) - California's budget fight is officially over. For now. Arnold Schwarzenegger signed into law yesterday a budget package that closes the state's $41 billion shortfall, but not before making $1 billion in line-item trims. The governor cut personnel budgets for state officials by 10%, $400 million in prison funding, and $510 million from higher ed. He plans to replace the education money with federal stimulus funds, reports the San Francisco Chronicle. The bill also includes $12.5 billion in tax increases. More»

200K at DMV, other agencies stay home amid budget crunch

(NEWSER) - Californians looking to renew a driver’s license today will be disappointed, as 200,000 state employees take their first forced day off. Gov. Arnold Schwarzenegger says the two mandatory unpaid vacation days per month—a 9% pay cut—is a budget necessity. But many Californians are confused about which offices are still open, reports the Los Angeles Times. More»

Fed stimulus eyed as municipal bonds wither

(NEWSER) - Thousands of infrastructure projects across the country are on hold as states wrestle with budget crises, the New York Times reports. Gov. Arnold Schwarzenegger warned yesterday that California was “on a track toward disaster" as school, bridge, and road construction projects ceased, the victims of the credit squeeze and institutional investors' declining faith in municipal bonds. More»

State controller refuses to cut smaller checks

(NEWSER) - Arnold Schwarzenegger upped the ante in his budget standoff with the state legislature yesterday, ordering almost all state workers' pay cut to the federal minimum wage—$7.25 per hour—effective immediately. The State Controller, Democrat John Chiang, says he won’t obey that order, the LA Times reports, but the Department of Personnel Administration says he doesn’t have a choice. The last time Chiang refused to cut worker benefits, in 2008, Schwarzenegger took him to court and won. More»

(NEWSER) - Just how bad has California’s budget crisis gotten? So bad that it’s holding what it’s calling the “Great California Garage Sale” this weekend, hoping to unload piles of junk and wasteful property that the state’s accrued over the years. Hundreds of items will be available, from BlackBerrys to desks to cars and CHiPs motorcycles. Arnold Schwarzenegger has even signed some of the items to drum up interest. More»