SACRAMENTO, Calif. — In response to California Governor Arnold Schwarzenegger’s threats to reduce state employee wages to the federal minimum as early as Thursday, The Golden 1 Credit Union is ready to offer its original SEG a two-tier state budget loan, approved last week by the board.

It’s unlikely workers will receive minimum wage pay, because the threat is meant to pressure state lawmakers into passing Schwarzenegger’s budget, which missed a July 1 deadline. But the threat isn’t entirely baseless: The Golden 1 President/CEO Teresa Halleck said state workers have received IOUs in place of pay checks in the past, and the state won a court case in 2003 that affirms a right to cut pay.

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