Governor Schwarzenegger

If it wouldn’t too terribly inconvenience the California legislature when they return from their month-long July vacation - taken in lieu of working together to pass a budget - could they possibly try to pass the budget when they return all sun-tanned and rested in August?  

Don’t bet on it.

On Friday, a judge ruled State Controller John Chiang can delay the temporary pay cut ordered by Gov. Schwarzenegger. Unfortunately, both sides are playing cynical political games with state workers' paychecks.

Governor Schwarzenegger made national headlines this week after the governor's Department of Personnel Administration issued an order to withhold the pay of state employees up to the legal limit- which is the Federal minimum wage of $7.25 an hour. Placing 200,000 of California's state employees on minimum wage was the latest move in a long battle over California's budget.

Election year politics and a lame-duck governor could be sending California into a lengthy budget standoff as the Legislature has already missed the often-missed June 15 constitutional deadline to send a budget to the governor. 

After losing in the first round, Governor Schwarzenegger has again applied for federal dollars through the “Race to the Top” initiative hoping to secure $700 million for California’s public school system. The Governor staged a public signing of the application in Long Beach, California. 

A coalition of students, parents, school boards, and California educational organizations has filed a lawsuit against the state seeking to declare the current school financing system unconstitutional, and to direct the California governor and legislature to create a system that is "sound, stable and sufficient." 

With the unveiling of Gov. Arnold Schwarzenegger’s revised budget May 14 and its more than $12 billion in spending cuts, the stage is now set for the GOP governor and Democratic majority legislature to begin the tussle, posturing and compromise that will eventually lead to a final spending pan for the fiscal year that beings July 1.

When Governor Schwarzenegger unveiled his revised 2010-2011 budget proposal last week, there were few surprises.  With $3 billion less in projected tax revenue in April due to the recession, the state is now facing a $19.1 billion deficit. 

Last Friday, Gov. Schwarzenegger detailed the brutal budget cuts coming, saying the state doesn’t have the money, and that the current system is broken and must be repaired. Further, he said he will not sign a budget that does not contain substantial pension, budget, and tax reform.

A Sacramento judge ruled last week that the State of California can raid $2 billion of local redevelopment money and use it to pay for schools.

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