useapen
2024-06-01 07:18:14 UTC
California Democrats are racing to reverse a new $25-an-hour healthcare
worker minimum wage law going into effect at the end of the week after the
governors office estimates it would cost the state $4 billion annually.
The news of the costs isnt new. In fact, it was projected by legislative
analysis and ignored by Gov. Gavin Newsom (D-CA), who signed the law in
October. Now, as it gets ready to go into effect, lawmakers are looking
for ways to delay it.
Californias budget deficit has grown in years and now stands at a hefty
$45 billion.
Newsoms office projects the new healthcare minimum wage could set the
state back another $4 billion per year thanks to higher Medicaid costs and
compensation for workers at state-owned facilities.
Presently, the states minimum wage for all workers is $16 an hour. This
Saturday, the wage will be bumped up between $18 and $23, depending on the
job and healthcare provider. The way the law is written, nearly all
workers in California healthcare facilities, including the janitors and
administration staff who work in the buildings, will be making at least
$25 an hour by 2028.
Earlier this year, Newsom also signed legislation that would give fast-
food restaurants operating on government property a $20-an-hour fast-food
minimum wage.
Critics claim Californias rush to raise wages is fiscally irresponsible
and indicative of how progressive mandates boomerang.
Democrats shrugged when healthcare providers warned that the wage mandate
could force cuts to patient services, a recent Wall Street Journal
editorial read. Who cares if Californians wait longer before being seen
at the ER? But now Democrats worry that the states higher health costs
could force bigger government spending cuts. Oh no. Californians may have
to wait even longer for their bullet train to nowhere.
Mr. Newsom is proposing to tie health worker minimum-wage increases to
the states general fund revenue and to exempt state facilities. But once
capital-gains revenue picks up again, Californias private healthcare
providers will be stuck paying for the wage mandate, which they will
ultimately pass on to patients. Far better to repeal the $25 wage minimum
en toto.
One group that doesnt want that to happen is the Service Employees
International Union-United Healthcare Workers West, the union that backed
the healthcare pay increase. They have recently launched an advertising
campaign to try to force Newsoms hand. One post on X shows a dialysis
worker named Alice, whom the union says provided lifesaving care.
The ad continues: Yet, with caregivers at her facility starting out at
only $18/hr, its no wonder theres a short staffing crisis. A $25/hr
minimum wage for healthcare workers will help ensure patients get the care
they need.
Nathan Selzer, the communications director for SEIU-UHW, an affiliate of
SEIU California, which sponsored the law, said union workers were
concerned and remain concerned.
What we saw in conversations earlier this year was folks really focusing
only on money and only on dollars and cents, and not on what those dollars
and cents are used for, he told CalMatters. We made a decision that
weve got to make sure were reminding people why this was made into law
to begin with.
The laws author, Democratic state Sen. Maria Elena Durazo, has already
submitted urgent paperwork for legislation that would delay the increase
to July 1.
SB 525 provided a historic wage increase to more than 450,000 health care
workers mainly women and people of color, who take care of us and keep our
health care system functioning, Durazo said in a statement. It is clear
that these workers need this to help support their families and I
appreciate health care employers that recognized this and have begun to
increase wages. SB 828 moves the start date of the health care minimum
wage by one month to July 1, 2024. This aligns SB 525 with the budget year
and allows the legislature to continue discussions with the administration
and technical changes to ensure health care workers get their raises.
Getting the start date pushed back will require a two-thirds vote from the
legislature, which lawmakers seem poised to do.
Calls to Newsom and Durazo for comment were not returned.
https://www.washingtonexaminer.com/policy/healthcare/3019564/california-
democrats-try-delay-25-hour-pay-bump/
worker minimum wage law going into effect at the end of the week after the
governors office estimates it would cost the state $4 billion annually.
The news of the costs isnt new. In fact, it was projected by legislative
analysis and ignored by Gov. Gavin Newsom (D-CA), who signed the law in
October. Now, as it gets ready to go into effect, lawmakers are looking
for ways to delay it.
Californias budget deficit has grown in years and now stands at a hefty
$45 billion.
Newsoms office projects the new healthcare minimum wage could set the
state back another $4 billion per year thanks to higher Medicaid costs and
compensation for workers at state-owned facilities.
Presently, the states minimum wage for all workers is $16 an hour. This
Saturday, the wage will be bumped up between $18 and $23, depending on the
job and healthcare provider. The way the law is written, nearly all
workers in California healthcare facilities, including the janitors and
administration staff who work in the buildings, will be making at least
$25 an hour by 2028.
Earlier this year, Newsom also signed legislation that would give fast-
food restaurants operating on government property a $20-an-hour fast-food
minimum wage.
Critics claim Californias rush to raise wages is fiscally irresponsible
and indicative of how progressive mandates boomerang.
Democrats shrugged when healthcare providers warned that the wage mandate
could force cuts to patient services, a recent Wall Street Journal
editorial read. Who cares if Californians wait longer before being seen
at the ER? But now Democrats worry that the states higher health costs
could force bigger government spending cuts. Oh no. Californians may have
to wait even longer for their bullet train to nowhere.
Mr. Newsom is proposing to tie health worker minimum-wage increases to
the states general fund revenue and to exempt state facilities. But once
capital-gains revenue picks up again, Californias private healthcare
providers will be stuck paying for the wage mandate, which they will
ultimately pass on to patients. Far better to repeal the $25 wage minimum
en toto.
One group that doesnt want that to happen is the Service Employees
International Union-United Healthcare Workers West, the union that backed
the healthcare pay increase. They have recently launched an advertising
campaign to try to force Newsoms hand. One post on X shows a dialysis
worker named Alice, whom the union says provided lifesaving care.
The ad continues: Yet, with caregivers at her facility starting out at
only $18/hr, its no wonder theres a short staffing crisis. A $25/hr
minimum wage for healthcare workers will help ensure patients get the care
they need.
Nathan Selzer, the communications director for SEIU-UHW, an affiliate of
SEIU California, which sponsored the law, said union workers were
concerned and remain concerned.
What we saw in conversations earlier this year was folks really focusing
only on money and only on dollars and cents, and not on what those dollars
and cents are used for, he told CalMatters. We made a decision that
weve got to make sure were reminding people why this was made into law
to begin with.
The laws author, Democratic state Sen. Maria Elena Durazo, has already
submitted urgent paperwork for legislation that would delay the increase
to July 1.
SB 525 provided a historic wage increase to more than 450,000 health care
workers mainly women and people of color, who take care of us and keep our
health care system functioning, Durazo said in a statement. It is clear
that these workers need this to help support their families and I
appreciate health care employers that recognized this and have begun to
increase wages. SB 828 moves the start date of the health care minimum
wage by one month to July 1, 2024. This aligns SB 525 with the budget year
and allows the legislature to continue discussions with the administration
and technical changes to ensure health care workers get their raises.
Getting the start date pushed back will require a two-thirds vote from the
legislature, which lawmakers seem poised to do.
Calls to Newsom and Durazo for comment were not returned.
https://www.washingtonexaminer.com/policy/healthcare/3019564/california-
democrats-try-delay-25-hour-pay-bump/