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California may lose Stimulus money because of wage cuts

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posted on May, 11 2009 @ 05:03 PM
Now this is complete abuse of power. How can a "senior lecturer on Constitutional Law" who has become President even think that this is correct action? States rights are a thing of the past?

U.S. threatens to rescind stimulus money over wage cuts

The Obama administration threatens to rescind billions in stimulus money if Gov. Schwarzenegger and lawmakers do not restore wage cuts to unionized home healthcare workers.
By Evan Halper
May 8, 2009
Reporting from Sacramento -- The Obama administration is threatening to rescind billions of dollars in federal stimulus money if Gov. Arnold Schwarzenegger and state lawmakers do not restore wage cuts to unionized home healthcare workers approved in February as part of the budget.

Schwarzenegger's office was advised this week by federal health officials that the wage reduction, which will save California $74 million, violates provisions of the American Recovery and Reinvestment Act. Failure to revoke the scheduled wage cut before it takes effect July 1 could cost California $6.8 billion in stimulus money, according to state officials.


The wages at issue involve workers who care for some 440,000 low-income disabled and elderly Californians. The workers, who collectively contribute millions of dollars in dues each month to the influential Service Employees International Union and the United Domestic Workers, will see the state's contribution to their wages cut from a maximum of $12.10 per hour to a maximum of $10.10.

More at link

So after all the work that California put into designing and passing a new budget, getting MANY workers to take pay/hours cuts, etc., here come the Federal Government saying, Nope, can't do that. If you DO do that, we won't let you get any of Uncle Sugar's Candy.

How long before the other 49 states find "new" strings attached to the release of their "stimulus" dollars?

posted on May, 11 2009 @ 05:11 PM

posted on May, 11 2009 @ 05:15 PM
Thanks Ferris, Guess I didn't search hard enough

Extended Vacations will do that to a person


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