SACRAMENTO, Calif. (7/6/10)--As an appeals court Friday upheld a ruling allowing California Gov. Arnold Schwarzenegger to cut state workers' salaries to minimum wage in the absence of a budget, a credit union announced its preparations to help workers faced with a lower or no salary until the state passes a budget. Sacramento-based The Golden 1 CU announced its "readiness to assist active state worker members who may be impacted" in a press release Friday. "In the event active Golden 1 members who work for the state receive minimum wage or zero pay related to the budget impasse, the credit union plans to offer State Budget Payroll Loans to help affected members with checking and Direct Deposit," said the credit union. Eligible members with a Golden 1 checking account and Direct Deposit of their state payroll checks will be offered the loans with rates as low as 0% annual percentage rate. "Golden 1 has a legacy of giving back to its communities during tiems of need," said President/CEO Teresa A. Halleck. The $7.3 billion asset credit union has more than 680,000 members. Schwarzenegger issued an order Thursday that put 200,000 state workers on minimum wage--$7.25 an hour--next month. July pay for most hourly state employees will be withheld to minimum allowed by law. Regular salaries would be restored when the budget is final (Sacramento Bee July 2). State Controller John Chiang had said he wouldn't follow the order unless ordered to do so by a court. On Friday the 3rd District Court of Appeal upheld a two-year ruling allowing the governor to cut the wages to minimum wage. The court agreed with the Sacramento Superior Court ruling, saying Chiang overstepped his authority by refusing to issue minimum wage paychecks to state workers during California's budget impasse in 2008. Chiang's office has not indicated whether he will appeal to the state Supreme Court. The governor's order was triggered by lawmakers' failure to enact a budget by Thursday, the start of the fiscal year. It exempts about 37,000 state workers in six bargaining units that have tentatively agreed to labor deals, said the newspaper.