SACRAMENTO — Gov. Arnold Schwarzenegger on Thursday readied a proposal to cut state worker salaries by an additional 5% as local government officials lambasted his bid to take $2 billion from cities and counties to help curb the state's growing budget deficit.
The governor's proposed salary reduction would affect 235,000 state workers who already are taking mandatory unpaid furloughs to help the state grapple with a projected budget gap of $24.3 billion.
Combined with the furloughs, ordered by Schwarzenegger earlier this year, the new proposed salary cuts would push many state employees' wages down by about 15%, saving the state $470 million.
"Everyone in the state is cutting back right now -- businesses, families," said Matt David, a spokesman for Schwarzenegger. "The governor feels it's very important that state workers do the same thing."
The new proposal would not affect employees of the state Legislature or court system, another spokesman said.
Schwarzengger plans to formally announce the wage cuts today, along with additional budget cuts, for a total of $3 billion in savings. The governor is scheduled to address a joint session of the Legislature on Tuesday, after the last of a series of public hearings on the budget concludes.
On Thursday, dozens of local government representatives told a 10-member legislative budget panel that Schwarzenegger's plan to tap them for $2 billion would force cities and counties to slash police and fire protection, shut libraries and cause a cascade of other troubles as they struggle to make ends meet.
The governor's proposal, which involves borrowing local property tax money and repaying it within three years with interest, simply transfers the state's fiscal woes to a rung of government that can least afford it.
"The only thing that does to our county is put us in a truly perfect fiscal storm," said Supervisor Kim Vann of Colusa County, where budget cuts have resulted in layoffs, a spending freeze, an overcrowded jail and other troubles. "It will mean financial devastation."
Schwarzenegger wants to take nearly $700 million from cities and $330 million more from special districts that provide fire protection, flood control, mosquito abatement and other services.
Counties could be hit particularly hard, with Schwarzenegger proposing to cut nearly $1 billion from their funding. Los Angeles County alone could lose $300 million, adding to deep revenue declines amid the sagging economy.
