On Thursday of this week, in a largely unreported and unnoticed story, governor of California Arnold Schwarzenegger signed an executive order eliminating 22,000 jobs and reducing the wages of a further 200,000 to the statutory minimum wage.
Despite the terrible effect this will have on those thousands of families, with gas prices and house foreclosures at record levels, very few people noticed.
So what was behind this sudden devastating move? Well, there's an argument going on between Republicans and Democrats over the state budget. According to CBC:
Democrats and Republicans remain far apart over how to narrow a $15.2-billion deficit.
Democrats favour $8.2 billion in new taxes on corporations and the state's wealthiest residents. Republicans oppose tax increases and want a spending cap.
More Republican fiscal responsibility - avoid taxing corporations and the states wealthiest residents and instead cap spending. Even if that means dismissing 22,000 of the lowest paid.
The next question that needs to be asked is, who the people are that will be dismissed or put on minimum wage until the crisis is solved? First of all the 22,000. If you believe Fox News:
About 22,000 such workers face layoffs. That could mean fewer DMV workers, fewer food safety inspections and cutbacks in the programs that stock fish in the state's rivers and lakes, as well as other consequences.
While few would be upset at less DMV workers, what about food safety inspectors? And apparently Fox isn't telling the whole story (big surprise there). CBC again:
Schwarzenegger's job-elimination order covers 22,000 positions, including retired state employees who work under contract, temporary and part-time workers, seasonal employees and student assistants.
However, his finance team said only 10,300 would receive pink slips immediately. The remainder may be exempted from the order because they are deemed crucial to public safety.
Who are these people crucial to public safety? Well, they're food inspectors, employers responsible for healthcare for prisons and other such people. So, you would think that Govenor Schwarzenegger would agree that these people should be protected from such financial hardship as they do such an important job, right?
Wrong. From Fox:
Controller John Chiang, a Democrat, said he will defy Schwarzenegger and keep sending permanent employees their full checks, rather than paying them minimum wage. State employee unions promise to seek injunctions blocking the entire executive order.
and from the BBC:
"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.
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."
In other words, he's prepared to spend more money the state doesn't have, suing anyone who doesn't comply with his instructions.
Two of the worst things about this whole affair are firstly that it hasn't been widely reported, that the governor is holding the lowest paid to ransom until he gets his way, and secondly that even those news organizations that are reporting it are doing so in such a way that the whole news requires digging through multiple news agencies. Even Daily Kos hasn't had any diaries about it that I could find with the search function.
According to Governor Schwarzenegger a ruling by the supreme court in 2003 gives him the right to declare a state of financial emergency and do this. There is a storm brewing between the governors office and the financial controllers office about this, which could end up in front of the courts. In the meantime, spare a thought for those whose new financial plight will go unheard during all the coverage of Obama and McCain.