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 fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
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
  • -->

    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.