Governor Gavin Newsom wants to delay a healthcare worker wage increase due to budget issues, causing concerns about economic impacts among small businesses and healthcare providers.
California Governor Newsom Seeks Delay on Healthcare Worker Wage Increase Amid Budget Crisis
According to the published article in Just The News, California Governor Gavin Newsom wants to delay a planned wage increase for healthcare workers because the state is facing a big budget problem. The increase would raise the minimum wage to $23 per hour this June and cost the state $4 billion in the first year. To manage this, Newsom suggests linking the wage hikes to the state’s general fund revenue and exempting state facilities. He proposed adding an annual “trigger” to decide if the wage increases should happen based on available funds.
State Senator Maria Durazo, who wrote the law to raise the healthcare worker minimum wage to $25 per hour by 2026, has introduced a bill to delay the increase by another month to allow more time for discussion. The law targets employees at large healthcare workers and facilities in big counties and includes workers like food service and gift shop staff. This delay is causing worry among small business owners who fear the higher wages will increase their labor costs as they compete for workers.
READ ALSO: 8x Increased Demand: How Transferable Tax Credits Are Powering South Carolina’s Electrical Grid Growth And Economic Boom – Check It Out!
$23/Hour Minimum Wage Hike for California Healthcare Workers on Hold: $4 Billion Cost Concerns Amid Budget Deficit! (PHOTO: GV Wire)
California Business Leader Warns of Economic Consequences of Proposed Healthcare Worker Wage Hike
Furthermore, John Kabateck, the California Director of the National Federation of Independent Business, said small businesses are already struggling to hire and keep good employees. He believes the proposed wage hike will make things harder for the state’s healthcare worker system and have serious economic effects. Kabateck pointed out that while the policy aims to improve worker pay, it could cause significant financial problems for both state and private sector employers.
READ ALSO: 1 In 5 Families Struggle With SNAP/EBT Hacks: One Woman’s Frustrating Ordeal And The Urgent Need For Swifter Resolution
