Schwarzenegger's Pay Cut Won't Affect August Pay

SACRAMENTO (AP) - California's state employees won't see big
cuts in their August paychecks.

A Sacramento judge on Wednesday scheduled a Sept. 12 hearing into Gov. Arnold Schwarzenegger's attempt to slash the pay of nearly 180,000 state workers as lawmakers debate how to erase a $15.2 billion budget deficit.

State officials say that means a decision allowing the cuts would come too late to affect the August payroll.

Schwarzenegger wants to cut the pay of about 140,000 state employees to the federal minimum wage of $6.55 an hour.

About 30,000 management employees would be paid $455 a week. Another 8,000 state workers without federal minimum wage protection
wouldn't be paid at all until a new state budget was adopted.

Schwarzenegger says the cuts are needed to prevent the state from running out of money.

But state Controller John Chiang has refused to implement the cuts, saying the state has enough money to cover its bills into October.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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