From The Bee's Kevin Yamamura:
Democratic State Controller John Chiang said Wednesday he will refuse to reduce state worker pay as demanded by Gov. Arnold Schwarzenegger, possibly sparing more than 200,000 public employees from furloughs and pay cuts.
The move by Chiang, who is responsible for issuing state payroll, could require the Republican governor to obtain a court order to implement his twice monthly furlough plan.
Chiang filed documents Tuesday afternoon in Sacramento Superior Court arguing that the governor's plan is illegal.
"California law is clear that only the Legislature has ultimate authority over setting state employee salaries," Chiang said. "While I agree with the Governor that State employees - like all Californians - must tighten their belts, it must be done so in a manner that is consistent with the rule of law."
Check back here for more from The Bee on this developing story.