California: Governor plans to slash state workers' pay

Folks, the Golden state ain't. The boom was a fantasy and the problems will not go away anytime soon. Building an economy on paper rather than activities that add value is not sustainable. I imagine the next step is going to be an attempt to pick the pockets of the rest of the country, those 53 members of the U.S. House, led by the Speaker, will try to nationalize the costs of Cali's profligacy and policies. It should be interesting.
From the San Francisco Chronicle:

Gov. Arnold Schwarzenegger plans next week to slash the pay of more than 200,000 state workers to the federal minimum of $6.55 per hour to help ease the state's budget crisis, according to a draft executive order obtained by The Chronicle on Wednesday.

The governor also will order an end to overtime pay for all but critical services, a freeze on state hiring and the immediate layoff of nearly 22,000 temporary, seasonal and student workers.

"As a result of the late state budget, there is a real and substantial risk that the state will have insufficient cash to pay for state expenditures," the executive order states....MORE