SACRAMENTO, Calif. -- California's continuing budget crisis iscausing a delay in the appointment of the state's credit unioncommissioner, said California Credit Union League Director ofPolitical Finance Katie Newton.

The Department of Financial Institutions has been without apermanent deputy commissioner for credit unions since November2007, when Elizabeth Dooley left the post to take the President/CEOjob at $1.7 billion Educational Employees Credit Union.

The position is a gubernatorial appointment, and GovernorSchwarzenegger was expected to announce Dooley's replacement bysummer. However, Newton said there won't be any new appointmentscoming out of the governor's office until the state budget, pastdue as of July 1, is finalized.

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

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