BBC News, Los Angeles<\/span><\/span><\/p>\nElected representatives in California have been told their wages and expenses have been stopped and they will not be paid until the state budget balances.<\/p>\n
State Controller John Chiang took the step after determining that the budget approved last week was not balanced.<\/p>\n
It is the first time a law brought in last year, to stop California constantly missing its annual budget deadline, has been brought into effect.<\/p>\n
Mr Chiang’s decision sparked sharp criticism from legislators.<\/p>\n
‘Questionable manoeuvres’<\/span><\/p>\nIt is often said if the state of California was a country it would be the eighth biggest economy in the world.<\/p>\n
But with a $10bn deficit to match, and residents fed up of legislators missing the annual budget deadline by months, they voted for a new law.<\/p>\n
It is the first time Proposition 25 has been put into effect – and it means all 120 elected members of the State Assembly and Senate will not be paid their wages, or their living allowances, until they pass a balanced budget.<\/p>\n
There was obvious uproar from the legislators.<\/p>\n
Last week, for only the second time in 20 years, they actually passed a budget on time – only for it to be vetoed by Governor Jerry Brown.<\/p>\n
He said it contained “questionable manoeuvres” to cover up the real figures and would increase, rather than reduce the state deficit.<\/p>\n
It was an opinion shared by Mr Chiang, who declared it “miscalculated, miscounted or unfinished” and $1.8bn short.<\/p>\n
So the financial pressure is on for Californian Republicans and Democrats to compromise.<\/p>\n
The issue is one which resonates across the US, and in many parts of the Western world – the ideological question of spending cuts versus tax increases.<\/p>\n
Mr Brown has cut spending in the state, but he wants tax increases.<\/p>\n
Legislators are critical of the decision and talk of a legal challenge, but minds may be more malleable when the pain is felt in their pockets.<\/p>\n<\/div>\n
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