Schwarzenegger ordered layoffs, heavy pay cuts

[...]
State Controller John Chiang, who is responsible for disbursing paychecks, sent a letter to the governor on Thursday reiterating his position that he would disregard Schwarzenegger's order to cut workers' pay.
[...]

The governor's executive order also includes a hiring freeze, no overtime pay and releasing contract consultants. Those moves plus the layoffs would net between $80 million to $100 million in savings in August, said Department of Finance Director Mike Genest.

On Thursday, Schwarzenegger said he intends to "get a budget within the next few days."

That's why the governor's order doesn't make sense, said Assembly Speaker Karen Bass, D-Baldwin Vista (Los Angeles County), who added that she thinks a compromise on the budget can be reached in the next two weeks.

"I believe we will have a budget before Aug. 31, (the pay cuts) will never be executed, and I don't believe this action was necessary," she said. The governor "is under pressure and we are all under pressure. That's why I don't understand why this distraction is needed."