The Governor did what he said he would do today.  He just cut the pay for over 200,000 state workers to the federal minimum of $6.55/hour and fired 22,000 temporary or seasonal workers.  We do have someone fighting back and that is Democratic Controller John Chiang.  SacBee:

While budget delays have nearly become an annual rite in the Capitol, Schwarzenegger argues that this year calls for drastic steps because the state has less cash due to a sour economy. The move could save roughly $1 billion per month, and the governor believes California will not have a sufficient cash reserve in September without the executive order.

But Democratic state Controller John Chiang disputes Schwarzenegger’s view of the state’s cash situation, insisting the state has enough cash to last through September without engaging in expensive borrowing. Chiang has vowed to defy part of the governor’s order by paying state workers their full wages, though he cannot help temporary state employees retain their jobs.

There remains a high threshold for the federal minimum wage cut to take effect for 200,000 state workers. Most get paid at the end of the month, so the lawmakers would have to remain in a stalemate through the end of August. Even then, Chiang has said he intends to issue full paychecks at that time, so Schwarzenegger would have to sue the controller to ensure workers receive the federal minimum wage, a process that could take weeks or months and pose image problems for the governor.

Any minute my aunt, who works for the state is going to call me back.  She called earlier today from a room filled with seasonal workers.  I get the unhappy task of letting her know they all got fired.

Damn you Arnold.  We didn’t need to do this.  Once the budget is passed, it is going to be a pain in the rear to process the paperwork and hire everyone back.  The amount of pain and financial hardship this is going to cause is immense.  

[UPDATE] Here is Speaker Bass’s statement:

“I’m disappointed with the Governor’s decision. It is an unwise and unfortunate move to cause economic strife to public servants and their families who are working hard and playing by the rules. We are not going to let this decision get in the way of our mission which is to deliver a budget that reflects the values of Californians. We are continuing to make progress and I remain hopeful we will have a budget on his desk in the next few days.”