From FoxNews.com:

Gov. Arnold Schwarzenegger’s order to pay 200,000 state workers just the minimum wage sent a signal to California lawmakers: In the impasse over closing California’s $19 billion budget deficit, Schwarzenegger is ready to play hardball.

The Legislature’s deadline to send a spending plan to the governor passed two weeks ago, and the fiscal year began Thursday with Republicans and majority Democrats no closer to finding a compromise.

Schwarzenegger’s action is intended to pressure the legislative leaders to get to work so California does not repeat the cycle of IOUs and higher interest rates that have plagued it during recent budget stalemates, which sometimes have dragged on for months.

“This all goes away if the Legislature passes a budget this month,” said Lynelle Jolley, a spokeswoman for the administration’s personnel department.

Read the Rest…