Friday, May 08, 2009

Obama Administration threatens to rescind CA 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.

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 news comes as state lawmakers are already facing a severe cash crisis, with the state at risk of running out of money in July.

Read on.

2 comments:

Anonymous said...

As if you don't have enough problems in Californiya (gropinator speek) and you have the Gropinator, new housing developments being torn down, out of control wildfires, ...and the yuck with no underware running the State. Illinois or California, tied for the next "politicians gone wild" movie

airJackie said...

Yes TGCN our Govenor has and wears not underwear and he's stealing as much as possible because he will have no job. Don't worry Biden will make sure the money is fooled with. To many people in California will sing. Just think of how dirty Arnie is and it's sad Maria has so little self esteam in herself to beg a man to stay with her. Arnie can't even go back to his home as his birth country kicked him out. Just think if Arnie were in the building people would leave because of fear of catching what he has.