California healthcare workers They will have to wait at least three more months to receive the increase in the minimum wage.
Democratic state legislative leaders They agreed to delay the salary increase for some 426,000 health workers to help balance California’s budget.
The agreement between Governor Gavin Newsom and legislators part of a broader plan to close an estimated $46.8 billion budget deficit.
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Initially, the salary increase was due to take effect on June 1but May 31 was moved to July 1, as part of a plan to gradually increase the wage to $25 an hour over the next decade.
Now, if the state Legislature approves it this week, They could receive the increase from October 15 whether California revenues between July and September are at least 3% higher than state officials have estimated.
In case it does not happen, the salary increase for health workers enters into force from January 1, 2025 at the latest.
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The delay preserves a hard-fought victory for one of California’s largest labor unions and one of the Democrats’ biggest campaign donors.
Dave Regan, president of the SEIU-United Healthcare Workers West unionsaid that health employees are disappointed at not receiving the raise this summer.
In California, The minimum wage for most people is $16 an hour.which is already among the highest in the country.
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For most of the fast food workers in the state is $20 per hourwith a wage increase that began in April 2024 and has had effects throughout the state.
The increase of salaries of health workers is more complicated due to the impact on the state budget. California employs some healthcare workers and also pays for medical benefits through the state’s Medicaid program.
Gavin Newsom’s administration previously said that The wage increase would cost the state about $2 billion..
If it is delayed until January, The increase would cost the state’s general fund about $600 million.a figure that would increase annually to reflect scheduled increases until reaching $25 per hour for most health care workers.
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California’s revenues, while declining for much of the past two years, have recently recovered.
In total, the budget agreement would approve $297.9 billion in spending during the next fiscal year that begins July 1.
Governor Newsom and legislative leaders They agreed to $16 billion in cutsincluding $110 million for a program that helps students from middle-class families pay for college, and $1.1 billion in reductions in various affordable housing programs.
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However, Newsom and lawmakers agreed to abandon some previously proposed budget cutsincluding one that would have stopped paying people to care for some low-income disabled immigrants who receive Medicaid.
Lawmakers likely to vote on budget this week. Republicans, who do not control enough seats to influence the legislation, say they were left out of the negotiations.
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Senate President Pro Tempore Mike McGuire called it a “difficult budget year”but said elected officials were able to “reduce the deficit, protect our progress and maintain responsible reserves.”
The president of the Democratic Assembly, Robert Rivas, said that the Assembly “fought hard to protect the public services that matter most to Californians”.
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