California cutbacks may increase delays for state services

Beaches at Lake Natoma and Folsom Lake will go without lifeguards. Drivers could wait longer for licenses at the Department of Motor Vehicles.

But state officials said Thursday that they couldn't predict how much state services will suffer now that Gov. Arnold Schwarzenegger has laid off an estimated 10,300 temporary workers.

Schwarzenegger on Thursday also banned overtime, froze state hiring and reduced pay for about 200,000 state workers to the federal minimum wage of $6.55 per hour to preserve cash in the midst of a prolonged budget impasse.

The Republican governor said the state will be less productive because of the layoffs in the executive order he signed.

"I think that whenever you have layoffs and you do that, it will have an impact," Schwarzenegger said. "… In the private sector, we read every day stories where companies have to lay off. That means there is less productivity there. So we have to tighten our belt, everyone has to tighten our belt."

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