California budget ‘crisis’ used as club against workers

California Gov. Arnold Schwarzenegger has signed an executive order forcing up to 200,000 permanent state workers to start receiving the federal minimum wage of $6.55 an hour. Additionally, the order will lay off 10,300 contract and part-time workers

California Gov. Schwarzenegger has imposed major wage and job cuts on state workers.

Citing a so-called state budget “crisis,” Schwarzenegger said his order was needed to avoid a financial meltdown until the state legislature approves a budget. California has been without a budget since the fiscal year began on July 1.

The governor’s executive order also includes a hiring freeze, no overtime pay and the releasing of contract consultants. (San Francisco Chronicle, Aug. 1)

Schwarzenegger is using an anti-worker 2003 state Supreme Court decision that requires most employees to be paid the federal minimum wage during a budget impasse. “Our state faces a looming cash crisis,” he said. “I have a responsibility to make sure that our state has enough to pay its bills.” (Los Angeles Times, Aug. 1)

But California has enough money to pay workers. Schwarzenegger’s budget proposal for the coming fiscal year includes more than $10 billion for “Corrections and Rehabilitations”—a euphemism for the state’s prison system. Governments fabricate budget crises to justify cuts that hurt working people in order to continue funding priorities that meet the interests of the rich.

“Now I can’t pay my mortgage. I can’t pay anything—lights, gas, food,” said Celeste Knox, a mother of two who made $15.98 an hour as a temporary office assistant with the Department of Consumer Affairs. “I’ve just been crying and trying to find a way to make it work. So far I haven’t found one.” (Associated Press, Aug. 1)

State Controller John Chiang, a government official who is in charge of distributing and signing state workers’ paychecks is refusing to comply with the governor’s order. Members of the Service Employees International Union Local 1000 have filed a lawsuit challenging the firings. The SEIU and another union have also filed an unfair labor practice complaint alleging that the order is also meant to illegally influence ongoing contract talks. (Associated Press, Aug. 1)

Members of the California Attorneys, Administrative Law Judges and Hearing Officers in State Employment are also filing lawsuits against the state.

The pay cuts come at a particularly rough time for workers. As the economic crisis worsens, more workers are losing their homes to foreclosures and food and gas prices continue to rise. Billions of dollars are being wasted on imperialist wars.

The capitalist state exists for the benefit of a few, not the majority. The so-called state budget crisis—like all crises under capitalism—disproportionately hurts the working class. Workers lose their jobs, suffer from pay cuts and lose social services and other necessities while the capitalists get government bailouts and a variety of protections from the state.