Gov. Arnold Schwarzenegger has signed an executive order that eliminates 22,000 government jobs and ordered that 200,000 state workers receive the federal minimum wage until a state budget is approved.
The governor says the moves are necessary to avoid a "full-blown" fiscal crisis in California.
Lawmakers have yet to agree on a spending plan a month after the state's fiscal year began, leaving California without the ability to pay contractors, the higher education system and legislative employees.
Democratic and Republican lawmakers remain far apart over how to close a $15.2 billion deficit.
Schwarzenegger's order on the minimum wage is likely to be challenged by employee unions and the state controller.
Via associatedpress
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