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Gov. Schwarzenegger May Eliminate 22,000 Jobs

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Jul 28, 2008 1:11 pm US/Pacific

Gov. Schwarzenegger May Eliminate 22,000 Jobs

California Workers' Pay May Be Cut To Minimum Wage.

SACRAMENTO, Calif. (AP) ― Gov. Arnold Schwarzenegger is poised to eliminate about 22,000 temporary, part-time and contract workers and impose a hiring freeze because of the state budget impasse.

The governor is waivering on whether to sign an executive order that would immediately implement the cuts.

The order also would stop most overtime and allow him to roll back salaries for nearly 200,000 state workers to the federal minimum wage of $6.55 an hour.
 
The workers' full pay would be reinstated once a state budget is approved.
 
Schwarzenegger issued the threat last week after he grew frustrated with lawmakers' inability to reach a budget deal.

He wants one in place by Friday, the first of August.

Democrats want to close California's $15.2 billion deficit for this fiscal year by raising taxes and cutting some services.

Republicans oppose any new taxes.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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