SmartReMarxcom

In the fight over the state’s budget, California governor Arnold Schwarzenegger is ready to pay state employees federal minimum wage if the democrats and republications don’t resolve their differences. The problem? Federal minimum wage is at $6.55, $1.45 less than California’s state minimum wage. Schwarzenegger wants to punish the lowest workers on the state food chain because the politicians can’t get their shit together?

This might fall into a only-in-California category. Or maybe it belongs in only-Schwarzenegger-could-come-up-with-this-plan. President Schwarzenegger: “I was elected to *lead*, not to *read*.”

The state is facing a reported $15 billion deficit as of July 1 (yes, apparently they do know it’s July 24.) If Schwarzenegger’s solution is put in action, the reduction in pay would be temporary, and their regular salaries would be fully restored when a budget is signed. Also as part of the executive order, the state would freeze hiring of non-essential positions and implement layoffs of temporary positions the likes of interns and contractors.

Even with the potential cost savings of Schwarzenegger’s plan (estimates put the savings as high as $500 million per month), it would take most of August to execute the order, by which point the governor is hoping that a budget will have been approved.

All kidding aside, Schwarzenegger’s solution is clearly a feint. Cutting pay wages on the lowest state earners is insidious even for Mr. Freeze. Schwarzenegger knows he needs to play nice with his constituents if he wants to win a Senate seat in 2010.