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Jul 24, 2008 11:44 am US/Pacific

State Controller Won't Cut State Workers' Pay

SACRAMENTO (AP) ― State Controller John Chiang says he won't go along with Gov. Arnold Schwarzenegger's plan to temporarily cut 200,000 state employees' pay to the federal minimum wage to ease California's revenue problems.

Chiang says he'll continue to pay state workers their regular salaries, which is likely to trigger a court fight.

Critics of Schwarzenegger's plan say the Sacramento area particularly hard.

A spokesman for the Service Employees International Union, Jim Zamora, says paying the 112,000 state workers in the Sacramento area only $6.55 an hour would remove $15 million from the Sacramento economy each workday.

(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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