Treasurer Bill Lockyer, who acts as the state's banker, met with members of The Bee Capitol Bureau on Wednesday to discuss the tardy budget and the governor's plan to cut state worker pay to the minimum wage.
Are you in favor of what the governor proposes in terms of state employee pay?
No, I don't think it's a good idea. I'm not sure you can make those (payroll) computations in less than three months.
Will you cut your employees to $6.55 an hour?
I don't think I have any choice. We're told by our lawyers that we have to comply with that order if it's made.
In terms of running out of money, are we in a serious position?
It's serious in the sense we don't have the cushion or reserves we've had in prior years. … But I'm assuming before the end of the month (August), there will be a budget.
A whole separate question, of course, is since most of the collective bargaining agreements have expired, (the governor's proposed pay cut) is arguably an unfair labor practice. So add to the cost of computation, interest owed to employees and so on, is treble damages for an unfair labor practice. That and the effect on morale, and the fact that I don't think it has any impact on the budget negotiations whatsoever.
Unfortunately, I think it's another example of a governor who would rather have press conferences than do the tough, nitty-gritty negotiations.
When I was (negotiating) with Pete Wilson, he would have us in his office 10-12 hours a day, every day. Or almost every day.
Do you think (Gov. Arnold Schwarzenegger has) failed in terms of the budget here and should be more like (former Gov.) Pete Wilson?
There's a structural deficit in California that has to be addressed and this governor's done nothing to do that … . I just think a borrowing solution for operational deficits is terribly bad.
Do you mean the lottery?
Yeah, the lottery is the current iteration of a borrowing scheme. It's a little crazier than prior ones because it's borrowing against anticipated revenues that no one knows are real. It makes it much more speculative.
Is it worse this year than in prior years in terms of the political divide?
I don't think it's the worst, but it's not good. Sort of in the bottom quartile.
Call Judy Lin, Bee Capitol Bureau, (916) 321-1115.
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