State agencies spared thousands of temporary and part-time workers from layoffs and California's prison medical czar on Friday sought to exempt nearly the entire corrections department from a minimum-wage pay cut, raising doubts about how much cash the state will save under Gov. Arnold Schwarzenegger's executive order.

Besides instituting layoffs and a temporary pay cut, the governor eliminated overtime and imposed a hard hiring freeze. He allowed exemptions for crucial health and safety positions, but also for those serving revenue-producing functions, providing leeway.

When he signed his order Thursday, Schwarzenegger said he wanted to save cash to ensure the state can pay its bills. His Department of Finance estimated the maximum savings would be $1.2 billion per month, but that number will be reduced by all of the exemptions. Some 10,300 workers – less than half of those eligible for layoff – actually received pink slips.

"We will execute this executive order and achieve savings we need to meet the state's obligations," said Schwarzenegger press secretary Aaron McLear. "We don't believe the exemptions will keep us from realizing the savings we anticipated."

Agencies issued pink slips in varying degrees, based on initial data released Friday.

Resources Secretary Mike Chrisman said he spared the majority of his employees, though he did not confirm how many were let go. His agency has about 9,300 temporary workers total, according to state Controller John Chiang.

That includes the Department of Forestry and Fire Protection, whose firefighting forces were exempt. Most of the 3,500 seasonal State Parks and Recreation employees also received exemptions. On Thursday, a parks employee said lifeguards at Folsom Lake and Lake Natoma would be laid off. But Chrisman said he exempted lifeguards under public safety criteria.

Chrisman said he also spared some workers who collect fees in kiosks because he believes they serve a revenue-generating role.

The Department of Motor Vehicles said it laid off about 649 workers in the categories covered by Schwarzenegger's executive order. Many fill in at the DMV's field offices, spokesman Mike Marando said.

Still, many DMV workers who could have felt the ax did not. About 2,077 DMV workers fell into one of the categories being terminated, according to Chiang.

The State and Consumer Services Agency said it laid off 3,110 workers. The majority were in the Department of Consumer Affairs, where 2,859 received notices. Many were workers who proctor exams for people seeking professional licenses.

Notices went to 987 Caltrans workers, mostly maintenance workers and equipment operators, said Michael Bowman, spokesman for the Business, Transportation and Housing Agency. This was well short of the total of 1,679 Caltrans workers subject to termination under the executive order, according to the controller.

The Labor and Workforce Agency sent notices to another 472 workers, Secretary Victoria Bradshaw said, including those who handle workers' compensation claims or workplace complaints. Californians who file a disability claim or had a dispute over wages may see delays, Bradshaw said.

But the agency exempted workers involved in payroll tax collections. And in the area of unemployment insurance, the department was barred by federal law from making across-the-board layoffs and would have jeopardized federal funding if it had done so.

As the administration acknowledged earlier in the week, all temporary California State Fair employees would be exempt from layoff because they don't fall under the governor's direct authority.

The Department of Corrections and Rehabilitation did not have final numbers Friday. Spokesman Oscar Hidalgo said the total will include retirees who work part-time at all levels, except those who directly oversee prisoners.

A battle brewed between Schwarzenegger and J. Clark Kelso, the federally appointed receiver for state prison medical care. Kelso sent a letter to the Governor's Office specifying he would exempt all permanent employees who work in adult corrections – 60,000 out of 66,000 total in the department, roughly a quarter of all permanent state employees.

The governor's legal affairs secretary, Andrea Hoch, fired back in a letter: "Your exemption of all staff in the adult institutions is beyond your authority as Receiver."

Kelso disagrees.

"There's a pervasive interconnectedness between delivering medical services and everything else corrections does," Kelso said. "I don't want an employee deciding not to show up because he's earning minimum wage ... and then there's a riot and we lose a prison."

Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548.