SACRAMENTO, CA (AP) -- Gov. Schwarzenegger's administration is warning state workers that they will have their pay cut to the minimum wage if California lawmakers don't pass a budget soon.
In a memo sent Wednesday, Department of Personnel Administration director Debbie Endsley told agency managers the administration will tell the controller to reduce wages for the July pay period if there is no budget agreement.
California faces a $19.1 billion budget deficit for the fiscal year that starts July 1.
But the legal battle over minimum wage remains unresolved.
A Sacramento County Superior Court judge ruled last year that Schwarzenegger could cut state employees' pay to the federal minimum wage during a budget impasse. Controller John Chiang is appealing that ruling.
The Associated Press