California Business Minute™

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Hi, I am Tim Johnson and welcome to the California Business Minute.

The California Citizens Compensation Commission is scheduled to meet today
 to consider a proposal by its chairman to cut elected officials' salaries by 10
percent to help deal with a $15.2 billion state budget deficit.

But a legal opinion by attorneys for the Department of Personnel Administration
says the commission has the authority to cut officials' salaries, but it can't do it in
the middle of an official's term.

So, the commission’s action could limit those affected by the cut to the 80 members
of the Assembly and half of the 40 state senators. It would also prevent the commission
from cutting the salaries of the eight statewide elected officials, four members of the
Board of Equalization and 20 members of the state Senate this year. Their terms don't
end until 2010. But the commission could impose a pay cut starting in December on
Assembly members and the 20 senators who will be elected or re-elected in November.
Their terms start Dec. 1.

The commission's chairman, Los Angeles insurance broker Charles Murray, says the
commission should approve a pay cut to conform to the 10 percent budget cut Gov.
Arnold Schwarzenegger wants to impose on most state operations.

I am Tim Johnson and this has been the California Business Minute.