SACRAMENTO, Calif. -- California's continuing budget crisis is causing a delay in the appointment of the state's credit union commissioner, said California Credit Union League Director of Political Finance Katie Newton.

The Department of Financial Institutions has been without a permanent deputy commissioner for credit unions since November 2007, when Elizabeth Dooley left the post to take the President/CEO job at $1.7 billion Educational Employees Credit Union.

The position is a gubernatorial appointment, and Governor Schwarzenegger was expected to announce Dooley's replacement by summer. However, Newton said there won't be any new appointments coming out of the governor's office until the state budget, past due as of July 1, is finalized.

The governor and lawmakers have been bickering over the state budget for months. Schwarzenegger threatened to drop state workers' salaries to the federal minimum wage of $6.55 until the budget is passed, but State Controller John Chiang, who issues paychecks, said he would defy the order. Wednesday morning, a judge agreed to hear Chiang's challenge to Schwarzenegger's authority to drop state wages. The case will be heard Sept. 12, which keeps state wages in check until then.

Later that day, the governor took a new budget proposal public that assesses a temporary 1% sales tax increase, rather than borrow the money needed to make up budget shortfalls, as the legislature has proposed.