It wont happen shorty, the state controller and the unions are fighting it 

Mark-
The unions and Chiang lost today, 3rd district of the California State Supreme Court ruled that yes, in times of financial crises, the Governor can instruct the controller to pay minimum federal wage. This is a step up from when Davis was in office and they issued IOU's to state employees. As a former state worker, this was always a concern of ours come budget time. I still talk to my old colleagues, guess what, they got the notice today that they indeed are making $7.25 per hour until the budget passes. Originally Arnie wanted to exclude the members of the unions that had signed new contracts, he can't do that, it's everyone gets $7.25 or no one does.
Chiang has said he will defy the instruction, I'm not sure if he truly understands the legality of the word "treason". There are steps in place to remove ANY state officer, elected or appointed, and you can bet your sweet hairy ass that Arnie knows those steps by heart.
