Schwarzenegger threatens minimum wage for workers

Gov. Arnold Schwarzenegger is threatening to pay thousands of state employees the federal minimum wage of $6.55 an hour until lawmakers reach a deal on California's overdue state budget. Democrats and Republicans have so far been unable to compromise on a solution to the state's $15.2 billion budget deficit for the fiscal year that started July 1. As the stalemate continued, Schwarzenegger has ratcheted up his rhetoric. Spokesman Aaron McLear said the Republican governor is contemplating signing an executive order next week that would pay about 200,000 state workers the federal minimum wage, which is $1.45 an hour less than California's minimum wage. Employees would receive their full salary retroactively once a budget is signed. "Because the Legislature has failed to produce a budget over a month past their deadline and... [read full story]