Although this is politically unfeasible, it’s worth going through the math, purely as an intellectual exercise.
One expert calculated that a 5% wage reduction for all public employees in California would cut state spending by $1.33 billion, reducing California’s 2011 state budget deficit by nearly 15%.
So, imagine if instead of making an average if $73,060 per year, an average public sector worker would make, say $42,447 — 10% less than the $47,164 that she would earn in the private sector. A back of the envelope calculation shows that California’s budget deficit would disappear in one fell swoop.
Note that this exercise sound unreasonable only because it implies a drop of more than 40% from currently ludicrous levels.