California controller officially refuses to comply with pay-cut order

SACRAMENTO – State Controller John Chiang informed the governor’s office in writing today that he would not immediately comply with an administration order to decrease the pay of most state workers to the federal minimum wage of $6.55 per hour until a state budget is enacted.

A deputy to Chiang, who controls the state payroll, wrote that carrying out the pay cut order Gov. Arnold Schwarzenegger signed late last month would be a complex process and the controller’s office needs until at least the end of the week to determine if it is possible. Administration officials said they would not wait. They said the governor intends to file a lawsuit by day’s end to force Chiang to make the cuts.

Lost wages would be repaid when a budget is in place. Chiang’s office said that resetting the state’s payroll computers to temporarily change the salaries of tens of thousands of workers is no simple task.

“Implementing system changes of the magnitude needed to accurately pay each employee should not be taken lightly,” said the letter to the administration. “If they are not performed thoughtfully and accurately, the system changes could subject the state to further litigation and unnecessary costs.”

 evan.halper@latimes.com