State Controller John Chiang Points Out Governor Schwarzenegger's Compassion Chip is Missing
The Governator's compassion chip is missing.
When California state controller John Chiang vowed he wouldn't comply with Governor Schwarzenegger's executive order cutting state employee's pay to $6.55/hr--well below state minimum wage of $8.00/hr--he said that cash reserves were sufficient to last through September before borrowing to cover the $15 billion budget shortfall. He also cited legal precedent for his noncompliance--namely, the controller cannot violate the federal Fair Labor Standards Act.
Now, in a revised estimate, Chiang says that there are reserves adequate to making regular payments to state workers through October before the state undertakes an emergency loan. (The state of California's budget is habitually late to be approved. You can almost set your watch to it.) Chiang is showing fiscal prudence in the face of the Governator's bullying irresponsiblity.
So what's the rush, Gov? Putting state employees in a vise between the slowing overall economy and the tough California homeowner credit crunch and squeezing hard isn't my idea of compassioniate conservatism or any other catchy "kinder, softer, gentler" Republican spin.
Listen to one working mom who's a state employee, and a single parent head of household. I'm pretty sure taking away her ability to feed her kid and make sure he has new clothes and supplies for school is NOT worth the Governor's grandstanding about being "tough on taxes".
What's with the needless punishment of state employees? Especially when we're probably going to have to get a loan to tide the state over anyway. Maybe the governor needs to explain to Californians exactly why the legislature and the governor's office can't reach an agreement before October and what pro-active steps he will take to make the budget signing happen.
Cynematic blogs crankily at P i l l o w b o o k.












I can understand his frustration with the annual budget argument, but holding our state employees hostage (or their paychecks anyway) is no way to break the logjam. Compassion chip indeed.
Posted by: Donna | August 07, 2008 at 05:48 PM
Has the governor taken a pay cut yet?
Posted by: Daisy | August 07, 2008 at 07:08 PM
Daisy, apparently the governor of California's state salary of $175,000 a year is too SMALL POTATOES for the Governator to accept. So while you're question is a great one, it also causes him no pain whatsoever.
Posted by: cynematic | August 07, 2008 at 07:18 PM
I get the legal/social side of this, but uber-geek Darren has another perspective on this.
Apparently there's an article on Infoworld (http://weblog.infoworld.com/fatalexception/archives/2008/08/californias_leg.html) about it.
What it boils down to: the State of California's system is based off an ancient programming language called COBOL. Back around the turn of the century, most states got rid of their COBOL programmers - who have moved on to bigger and better things.
The result is that any changes, including changing pay rates for people, have to be entered manually rather than through the programming - because nobody programs in COBOL anymore. Now, if someone goes up a pay grade or whatever, fine - that's just one person.
But the entire California public service? HA!
From the article: According to an article in the Sacramento Bee, Chiang testified before the state Senate Committee on Governmental Organization that the software updates needed to facilitate the 200,000 cuts would take at least 6 months. Furthermore, Chiang said, when the pay cuts are eventually reversed, rolling back the changes and delivering back pay to those workers would take another 9 to 10 months.
The option, of course, is to contract out the COBOL programming. Which would probably exceed the savings since its damn near impossible to find a COBOL programmer these days.
The SacBee article is here: http://www.sacbee.com/111/story/1132588.html.
Yes, I ROFL'd. Lack of foresight in government - NEVER. :) (and I am a public servant)
Of course, there is a plan to modernize the system - which due to delays is now at a cost of $177 million.
Makes you wonder - is California just the tip of the iceberg? Darren's rumours from the info/tech sector say New York, Philidelphia and Texas are all on the line because of this too.
Posted by: Nicole | August 07, 2008 at 07:47 PM
Nicole, you scooped me! When I interviewed John Chiang, he mentioned a previous fiasco in Los Angeles when city and county workers had their pay held and the resulting technological nightmare of trying to fix and backdate and carry over balances owed on those paychecks. Chiang said it would take his office well over 10 months to do the same kind of paycheck legerdemain Schwarzenegger's pay cuts would involve--hence, the fiscal irresponsibility (and increased insensitivity) of the Governator's plan.
I was planning a future post on just this angle, tying it in with Obama's plans to upgrade antiquated government IT so we can have a truly functioning "iPod government", but ya beat me to it!
Proof of the amazingness and brilliance of our readers. Did I mentioning good-looking too?
Rock on, Nicole!
Posted by: cynematic | August 08, 2008 at 07:49 AM
Thanks! It was actually uber-geek partner, Darren :) But I'll let him know you think he's good looking and brilliant :) (So if his head doesn't fit through the door tonight, we know who to blame. But we'll just blame Bush instead :))
Migrations from one system to another are usually nightmares, according to Darren, and I can believe it. His eyes glazed over and he actually went a bit pale when he was telling me about it last night. I can't imagine that nightmare, and the cost involved.
All I can say is, good luck.
Posted by: Nicole | August 08, 2008 at 08:23 AM
Nicole,
Well, we can't very well *stay* mired in 1991 and COBOL, can we?
To get everyone updated creates high-tech jobs, for one. This is our governmental/informational infrastructure. If we don't do infrastructure investment and upgrading, then we'll continue to lurch along with antiquated systems in the public sector and drive on roads and bridges that are ready to fall apart (or levees that'll wash clear away).
But yeah, not a small or easy problem to fix by any stretch of the imagination.
Cynematic
PS Both you *and* Darren are just unreasonably good-looking and brilliant. ;)
Posted by: cynematic | August 08, 2008 at 08:31 AM
I pointed Darren here. He is suitably impressed.
(or is that embarassed?)
And he agrees with you on the upgrade issues. They need to be done - and I am not denying that either.
All I'm saying is that there has to be a better way.
(And next year? I will buy you a cocktail at BlogHer)
Posted by: Nicole | August 08, 2008 at 08:07 PM