Business

                The annual state budget delay comes with an interesting twist
this year.  Not only have lawmakers missed the new budget deadline, but the
governor and state controller are entrenched in a court battle.
                Without a budget in place, the state cannot
legally pay its July
bills,according to the controller's office. Last Friday, an appeals court
gave
Gov. Arnold Schwarzenegger the okay to temporarily reduce pay for about
200,000
state workers to the federal minimum wage of $7.25 an hour.  Once a
budget is
signed, workers would be entitled to their full back pay.  The new budget
year
began July 1.

The Governor's Office sought an injunction on Tuesday to force state
Controller
John Chiang to slash wages of state workers.  But Chiang has refused,
though a
court has ruled against him. A state appellate court heard the case in
June but
has not yet ruled.
                Unionized state workers converged at the
Capitol on Wednesday to
protest Schwarzenegger's plans.  Democrats also came against the
governors
proposal, calling it a political stunt, and accusing him of
toying with the
lives of working families.  Chiang, also a Democrat, said the
states automated
system is outdated and incapable of changing pay amounts on 200,000 checks by
Schwarzenegger's July 22 deadline.
Critics say the governor is using pay cuts to force legislators to finalize a
budget.  But this year there's less skin in the game.  Community
health clinics,
for instance, will continue to receive funding regardless of when the
budget is
approved.  Community colleges have adapted to missed budget deadlines by
using
their own money.  Vendors are learning to find other resources to offset the
temporary absence of state paychecks.  
Though there will be suffering until a new budget is approved some college
grants will be held up the push to approve a budget isn't as urgent as
in years
past.  Meanwhile. state lawmakers are on summer recess.