State News: State Controller will refuse to reduce state worker pay

Wednesday, January 21, 2009

State News: State Controller will refuse to reduce state worker pay

Democratic State Controller John Chiang announced Wednesday he will refuse to reduce state worker pay as demanded by Gov. Arnold Schwarzenegger, hopefully averting furloughs and pay cuts for 238,000 public employees.
Schwarzenegger signed an executive order in December requiring that state workers take two unpaid days off each month through June 2010, equivalent to nearly a 10 percent pay cut. The governor's plan would shut down most state offices on the first and third Friday of each month starting Feb. 6 2009
The governor's Department of Finance has estimated the plan would save $1.3 billion over 17 months.
The State Controller John Chiang filed court documents Tuesday afternoon in Sacramento Superior Court arguing that the governor's plan is illegal. His filing is a response to a lawsuit filed by state engineers and scientists to stop Schwarzenegger's order.

The state controller argues this time in his legal brief that state law explicitly prevents the governor from unilaterally furloughing state employees. Schwarzenegger aides said in December that they believe they have unique authority to do so because the governor declared a state of fiscal emergency.
Bottom line: Governors budget cutting would have no net effect on a estimated 40 billion dollar deficit, and if the State was to layoff every single employee for two years saving approximately 36 billion dollars the state would still be losing money.

Labor response: labor unions immediately applauded Chiang for his announcement.

"Once again John Chiang has come through for state workers and the people of California by obeying state law instead of playing political games," said Jim Zamora, spokesman for Service Employees International Union Local 1000, which represents 95,000 state workers.

"We have long maintained it is illegal for the governor to unilaterally enact mandatory furloughs.

SEIU Local 1000 will continue to discuss furloughs as well as our own cost saving proposals with the governor's negotiators at the bargaining table."

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Wednesday, January 21, 2009