Gov. to Cut Pay of More than 200,000 Workers

Gov. Arnold Schwarzenegger reportedly plans next week to slash the pay of more than 200,000 state workers to the federal minimum of $6.55 per hour in a move he hopes will lessen the state's budget crisis.

The governor is also reportedly slated to end overtime pay for all but critical services, place a freeze on state hiring, and call for the immediate layoff of nearly 22,000 temporary, seasonal and student workers.

The layoffs could be done immediately, but the pay cuts would likely not be effective until later next month.

California faces a projected $17.2 billion budget deficit for the fiscal year that commenced July 1, and has not yet approved a budget.