With California facing an expected $68-billion budget deficit, Gov. Gavin Newsom is seeking “major reforms” to pull funding from a costly plan next year to begin raising the statewide minimum wage for healthcare workers to $25 an hour.
Newsom told The Times last week that his staff has “been working behind the scenes” with Democratic leaders in the Legislature on how to move forward with the minimum wage law in light of state budget concerns. The changes, which would have to be approved by lawmakers next year, were “all part of an understanding” with labor leaders before he signed the bill, Newsom said.
“We knew exactly where we are on the finances. We were very upfront with these guys. I said, ‘No way in hell,’ and we worked on something, and that will reveal itself in a matter of weeks,” Newsom said, recalling conversations leading up to passage of the bill.
It’s unclear whether Newsom is suggesting he would like to narrow the higher minimum wage to fewer workers, or whether he’s seeking to delay or pause implementation of the increase.
Newsom discussed the healthcare wage a week before a report was released Thursday by the Legislative Analyst’s Office, a nonpartisan government body that assesses policy for the Legislature. The report estimates that California could experience a $68-billion budget deficit through fiscal year 2024-25. The state budget is enacted on an annual fiscal calendar that begins July 1 and ends June 30.
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