California politicians taking pay cut

@CNNMoney June 1, 2012: 6:58 PM ET
California's Citizens Compensation Commission voted Thursday to cut the pay of the governor and state legislators by 5%.

California governor Jerry Brown.

NEW YORK (CNNMoney) -- California's budget woes have come home to roost for the state's politicians.

California's Citizens Compensation Commission, an independent government body, voted Thursday to cut the pay of the governor and state legislators by 5%. The move follows a budget proposal by the state's governor, Jerry Brown, that would cut the salaries of state workers by 5% in the coming fiscal year.

With the reduction, the governor's annual salary will drop from $173,987 to $165,702. For rank-and-file lawmakers, salaries will fall from $95,291 to $90,750.

A spokeswoman for Brown said the governor had no problem with the decision, and would have been willing to have his salary cut by more.

The cuts will save less than $700,000 a year, just a drop in the bucket when it comes to closing California's massive deficit. The state faces a budget shortfall of $16 billion that must be closed by July.

In addition to the pay cuts for state workers, Brown's budget would also reduce court funding by $300 million and overhaul the corrections system, saving $2.5 billion over the next two years. Overall, it would slash spending by $8.3 billion, hitting almost every part of the state's government.

Thursday's decision follows a 2009 vote from the Compensation Commission that slashed salaries for elected officials by 18%. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed4.20%4.30%
15 yr fixed3.28%3.30%
5/1 ARM3.53%3.34%
30 yr refi4.18%4.27%
15 yr refi3.26%3.27%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Economic Calendar
Latest ReportNext Update
Home pricesAug 28
Consumer confidenceAug 28
GDPAug 29
Manufacturing (ISM)Sept 4
JobsSept 7
Inflation (CPI)Sept 14
Retail sales Sept 14
CNNMoney Sponsors
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.