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.
As much as I opposed the stimulous bill and don't like the way Schwarzenegger and the Democrat-controlled legislature have run California into the ground fiscally, I find this move by the Obama Administration another example of thuggery, Chicago-style.
The Obama Administration isn't interested in keeping California (somewhat) solvent, it is more interested in pandering and giving paybacks to the labor unions.
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