This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/world/americas/7536486.stm
The article has changed 4 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Thousands face sack in California | Thousands face sack in California |
| (about 19 hours later) | |
| Governor Arnold Schwarzenegger of California has signed an executive order to sack 22,000 state workers and put 200,000 on the minimum wage. | Governor Arnold Schwarzenegger of California has signed an executive order to sack 22,000 state workers and put 200,000 on the minimum wage. |
| The most populous state in the US faces a budget deficit of more than $15bn (£7.6bn), and legislators are struggling to agree a spending plan. | The most populous state in the US faces a budget deficit of more than $15bn (£7.6bn), and legislators are struggling to agree a spending plan. |
| Mr Schwarzenegger says the cuts will save $100m a month and put pressure on politicians reach a budget deal. | Mr Schwarzenegger says the cuts will save $100m a month and put pressure on politicians reach a budget deal. |
| But a leading official in the state challenged the decision to cut pay. | But a leading official in the state challenged the decision to cut pay. |
| Opponents said there was enough cash to pay full salaries and the state's financial controller, John Chiang, vowed to ignore Mr Schwarzenegger's order. | Opponents said there was enough cash to pay full salaries and the state's financial controller, John Chiang, vowed to ignore Mr Schwarzenegger's order. |
| California has one of the largest economies in the world but the governor says it currently has no way to pay contractors for many of the services it provides. | California has one of the largest economies in the world but the governor says it currently has no way to pay contractors for many of the services it provides. |
| 'Whatever it takes' | 'Whatever it takes' |
| Mr Schwarzenegger, the former Hollywood film star turned Republican politician, told reporters he had signed an executive order on the staff and pay cuts. | Mr Schwarzenegger, the former Hollywood film star turned Republican politician, told reporters he had signed an executive order on the staff and pay cuts. |
| People are going to get put out of their homes. The governor says he's sorry. We can't pay with sorry Debra MartinUnion official class="" href="/1/hi/world/americas/7537685.stm">Read reactions from Californians | |
| Most of those laid off are seasonal and part-time staff, while the 200,000 remaining state employees would have their full salaries restored when a budget was agreed, the governor said. | Most of those laid off are seasonal and part-time staff, while the 200,000 remaining state employees would have their full salaries restored when a budget was agreed, the governor said. |
| "Today I am exercising my executive authority to avoid a full-blown crisis and keep our state moving forward," he said. | "Today I am exercising my executive authority to avoid a full-blown crisis and keep our state moving forward," he said. |
| "This is not an action I take lightly but we do not have a budget and, as governor, I have a responsibility to make sure our state has enough money to pay its bills." | "This is not an action I take lightly but we do not have a budget and, as governor, I have a responsibility to make sure our state has enough money to pay its bills." |
| Mr Chiang, a Democrat serving as financial controller, has vowed not to implement the pay cuts, saying to do so could risk legal action. | Mr Chiang, a Democrat serving as financial controller, has vowed not to implement the pay cuts, saying to do so could risk legal action. |
| He sent a letter to Mr Schwarzenegger on Thursday saying he would defy the order and issue employees their regular salaries. | He sent a letter to Mr Schwarzenegger on Thursday saying he would defy the order and issue employees their regular salaries. |
| The governor's executive order, he said, was based on "faulty legal and factual premises". | The governor's executive order, he said, was based on "faulty legal and factual premises". |
| Union anger | Union anger |
| Workers and union representatives were quick to point out the human cost of Mr Schwarzenegger's move. | Workers and union representatives were quick to point out the human cost of Mr Schwarzenegger's move. |
| "People are going to get put out of their homes. The governor says he's sorry. We can't pay with sorry," Debra Martin, a union official, told the Los Angeles Times. | "People are going to get put out of their homes. The governor says he's sorry. We can't pay with sorry," Debra Martin, a union official, told the Los Angeles Times. |
| The dispute between the governor and the financial controller centres on the interpretation of a five-year-old state Supreme Court ruling. | The dispute between the governor and the financial controller centres on the interpretation of a five-year-old state Supreme Court ruling. |
| Asked whether his administration would sue the state financial controller's office if it did not comply with the executive order, Mr Schwarzenegger said: | Asked whether his administration would sue the state financial controller's office if it did not comply with the executive order, Mr Schwarzenegger said: |
| "If that's what it takes. I'm here to make sure that our state functions, and whatever it takes, I will do it." | "If that's what it takes. I'm here to make sure that our state functions, and whatever it takes, I will do it." |
| Some 30 American states face budget deficits, caused by rising costs and falling revenues in a slumping economy, but California is by far the largest. | |