The announcement from the Gov's office has virtually nothing to do with immigrants, legal or otherwise.
The state is facing a multi-billion dollar shortfall, and will be unable to pay anyone very soon.
California has hired a very large number of "temporary employees." You can call them "contract hires," "job shoppers," or whatever name you choose, but there is no implication that any are/aren't immigrants and it may be presumed that they probably are all "legal" if they are. Most of those affected (~2,000) work for the DMV, and were hired as "temps" in response to complaints about long lines at the tag office.
Governor S is threatening to discontinue all such employees. That's a fact of life when one is a "temp."
He has also threatened to cut back all "permanent state employees" to the California minimum wage (~$6.75/hr?) until the state legislature comes up with a budget. Those regular employees would get the rest of their pay when/if the legislature provides necessary funding.
While the announcement has some flavor of political grandstanding, the simple fact is it does little good to have a job if the employer can't pay you. (Been there, done that.)