For the 23rd time in the last 32 years, California has begun a new fiscal year without a budget, leaving the state unable to fund some school programs and pay elected officials.
State workers protested outside the governor's Brentwood home Sunday after he signed an executive order last week slashing their pay to save money.
"Don't put your debt on the backs of your workers. You can't do this to us. We give you our all. You give us $6.55 an hour. That's below poverty wages," said Ali Sweeney, a healthcare worker.
The unions are going to court Monday to try to stop the governor's order.
Democrats and Republicans are at odds over how to erase a $15.2 billion deficit.
Meanwhile, Californians are already feeling the effects of the layoffs at most DMV offices. Even though there have been no layoffs yet, some workers are quitting and looking for other jobs because about 22,000 temporary and parttime employees are expected.