With Calif. budget not passed, workers may get lower pay

SACRAMENTO, Calif. - Gov. Arnold Schwarzenegger Thursday ordered that about 200,000 state workers be paid the federal minimum wage this month because the State Legislature has not passed a budget, but the state controller is refusing to comply.

Department of Personnel Administration Director Debbie Endsley sent the order in a letter to the controller, who refused a similar order two years ago. Most state employees would be paid the minimum of $7.25 per hour for the July pay period.

The legislature has failed to take steps to close California's $19-billion budget deficit, even as the new fiscal year began. Schwarzenegger made a similar order two years ago, but it never took effect because the controller would not comply. - AP