California Democrats delayed a minimum wage increase for healthcare workers to address a $47 billion budget deficit, potentially postponing raises until January 2025 unless state revenues improve.
California Delays Healthcare Worker Wage Increase to Address $47 Billion Budget Deficit
According to the article in the Washington Examiner, to fix a big budget problem, California Democrats decided to delay raising the minimum wage for healthcare workers. The new wage, which was supposed to be $25 per hour, was going to start in July for about 426,000 healthcare workers. However, lawmakers found that they couldn’t balance the state’s budget if they increased wages now, as it would cost around $2 billion.
Currently, most workers in California earn a minimum wage of $16 per hour. While the state recently agreed to raise the minimum wage for food service workers to $20 per hour, raising the wage for healthcare workers is more complicated because it affects the state budget directly. This is because the state employs some healthcare workers and pays for health benefits through Medicaid. Healthcare workers might see a wage increase by October 15 if state revenues are at least 3% higher than expected between July and September. If not, the wage increase will be delayed until January 2025, costing the state’s general fund about $600 million.
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$47 Billion Budget Deficit Forces California to Delay Minimum Wage Hike for 426,000 Healthcare Workers – Union Leaders Understand! (PHOTO: Bargaining 2021)
Union Leaders Acknowledge Lawmakers’ Efforts to Balance Budget and Support Healthcare Workers
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