By Cathy Bussewitz

(AP) For the second time in two years, California Gov. Arnold Schwarzenegger has ordered most state workers’ pay cut to the federal minimum wage because lawmakers missed their deadline to fix the state’s $19 billion budget deficit. The Legislature’s failure to act has left the state without a spending plan as the new fiscal year begins.

A state appellate court ruled in Schwarzenegger’s favor Friday, but the state controller, who issues state paychecks, says he can’t comply. One reason given by Controller John Chiang, a Democrat elected in 2006: The state’s computer system can’t handle the technological challenge of restating paychecks to the federal minimum of $7.25 an hour.

Chiang cited Friday’s ruling by the 3rd District Court of Appeals, which said “unfeasibility” would excuse him from complying with Schwarzenegger’s minimum wage order. He said a fix to the state’s computerized payroll system won’t be ready until October 2012.

Read the rest Old technology foils Schwarzenegger’s wage order – KansasCity.com.

 July 3, 2010  Posted by Jules Siegel at 12:36 pm  Add comments

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