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John Chiang’s offi ce will suspend $3.7 billion in payments owed to Californians

by the El Reportero’s staff

John ChiangJohn Chiang

State Controller John Chiang announced today that his offi ce would suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, as a result of the state’s cash crisis.

Chiang said he had no choice but to stop making some $3.7 billion in payments in the absence of action by the governor and lawmakers to close the state’s nearly $42-billion budget deficit. More than half of those payments are tax refunds.

The controller said the suspended payments could be rolled into IOUs if California still lacked suffi cient cash to pay its bills come March or April.

“I take this action with great reluctance,” Chiang said at a news conference in his office. But he said that without action to close the defi cit, “there is no way to make it through February unscathed.”

The payments to be frozen include nearly $2 billion in tax refunds; $300 million in cash grants for needy families and the aged, blind and disabled; and $13 million in grants for college students. (by Evan Halper).

Emeryville City Council upholds $200,000 back wage order Emeryville, CA – Last night, Woodfin workers won a historic victory against the hotel that owes them thousands in backwages. The latest chapter in the 3-year “David vs. Goliath” Woodfin hotel dispute has ended with yet another defeat for the hotel, whose owner, Samuel Hardage, continues his refusal to pay backwages to dozens of working immigrant mothers.

After a marathon 5-day hearing process, which began in November 2008, the Emeryville City Council once again decided last night to order the Woodfin to pay some $200,000 in back wages. The council rejected the hotel’s appeal of an identical decision issued in August 2008 by the City Manager, making only one minor modifi cation to that order. An attorney consulting with the city will now write fi ndings of fact based on Thursday’s decision, which the council is expected to formally adopt at an upcoming meeting.

Elated workers and their supporters clapped and joyously chanted “Sí se puede” on the steps of city hall after council reached the decision.

Wary that the hotel may seek to stall the payout by filing further legal appeals, workers vowed to continue their fight until they have the money in hand. (The Woodfin has already spent several times the amount it owes on largely unsuc­cessful litigation, seeking to overturn the city’s living wage law.)

“Our struggle for justice has lasted more than one thousand days, and it’s already been an inspiration to my children. I look forward to sharing this hard-earned money with my family when it fi nally arrives,” said former Woodfin worker Luz D.

For about a year, Woodfin failed to pay housekeepers the wage rates required under the law. Under Measure C, if a hotel assigns housekeepers more rooms than the law allows, it must pay the workers time-anda-half. However, for most of the year after Measure C passed, Woodfin managers assigned workloads far above what the law allowed. Thus, workers stood up for their rights under Measure C. (by ebase)

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