US News

Schwarzenegger cuts 22,000 jobs to tackle cash crisis

Jul 31, 2008, 20:35 GMT

Picture dated 10 January 2008 shows California Governor Arnold Schwarzenegger responding to media questions after introducing his 2008 budget proposal at the State Health Services Building in Sacramento, California, USA. Schwarzenegger eliminated 22,000 part-time and temporary government jobs on 31 July 2008, to save cash as the state faces a multi-billion-dollar deficit. EPA/JOHN G. MABANGLO

Washington - California Governor Arnold Schwarzenegger Thursday eliminated 22,000 part-time and temporary government jobs to save cash as the state faces a multi-billion-dollar deficit.

He also ordered that 200,000 state workers receive the federal minimum wage until the 2008-2009 state budget is approved.

'Today I am exercising my executive authority to avoid a full- blown crisis and keep our state moving forward,' Schwarzenegger said.

'This is not an action I take lightly, but we do not have a budget, and as governor, I have a responsibility to make sure our state has enough money to pay its bills,' his statement said.

His order states that since June 2008, the unprecedented number and size of fires in California 'created states of emergency that have required additional and substantial expenditures of cash to ensure that there are sufficient resources to effectively fight these fires and save lives and homes.'

The 22,000 jobs to be eliminated include those of seasonal employees, temporary workers, student assistants and retired state employees who work under contracts.

As for the salary cuts, the governor cited a 2003 California Supreme Court ruling, which permits him to slash the pay of regular full-time employees when the state lacks a budget.

According to the law, these workers must be paid the federal minimum wage of 6.55 dollars an hour and will be reimbursed once a budget is approved.