SACRAMENTO—Apparently backtracking on a prior agreement, Gov. Gavin Newsom, D-Calif., says the state now cannot afford an already enacted minimum wage hike for half a million healthcare workers next year.
According to an article in the Los Angeles Times, he says the state budget doesn’t have the additional money, approximately $1 billion annually. The gradual hikes, to $25 hourly, would start June 1.
The Times added that union leaders, primarily with the Service Employees, knew when Newsom signed the legislation that it would be conditional only—a position that could not be confirmed.
Hospitals, clinics, unions, and bill sponsor Sen. Maria Elena Durazo, D-Los Angeles, negotiated over the bill. It’s been a top priority for SEIU California, as well as Durazo, who formerly led the Los Angeles County Federation of Labor. Both groups are politically powerful in the Golden State.
Durazo’s SB525 would eventually raise hourly wages for healthcare workers in most settings to $25. Supporters said higher wages are needed to ease a workforce shortage that worsened during the pandemic as grueling conditions caused many to quit their jobs.
“Today California is putting a stop to the hemorrhaging of our care workforce by ensuring health care workers can do the work they love and pay their bills—a huge win for workers and patients seeking care,” Tia Orr, of SEIU California said when it passed.
Durazo could not be reached for comment. She was in Dubai for the unsuccessful global warming conference.
But Assembly Speaker Robert Rivas, D-San Benito, whose early support was key to SB525’s passage, appeared skeptical of Newsom’s explanation.
“I remain committed to working with my Senate, Assembly, and administration colleagues on a 2024 budget that protects classroom funding and priorities support for core health care, safety net, and public safety programs,” he posted.
“When the budget is due in June, we’ll also have a more crystallized understanding of our revenues and the state’s economic landscape. I’m also grateful we can rely on the state’s record reserves.”
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