Arnold May Slash Wages of Californa State Employees

Governor Arnold Schwarzenegger just announced that he will sign an Executive Order on Monday slashing the wages of over 200,000 state employees to the bare minimum until legislators send him a budget he can sign.

Reportedly not to California's minimum wage of $8 per hour, but to the federal minimum wage of $6.55.

The plan would allow the state to defer paying about $1 billion a month. Workers would be repaid their lost earnings once a budget was in place.

The deadline for passing a 2008-09 budget was July 1, and without one soon, California may be unable to borrow billions of dollars needed to keep the state solvent.