SACRAMENTO —
When Gov. Gavin Newsom signed a law that set a first-in-the-nation minimum wage for healthcare workers, three words in a bill analysis foretold potential concerns about its cost: “Fiscal impact unknown.”
Now, three weeks after Newsom signed SB 525 into law — giving medical employees at least $25 an hour, including support staff such as cleaners and security guards — his administration has an estimated price tag: $4 billion in the 2024-25 fiscal year alone.
Half of that will come directly from the state’s general fund, while the other half will be paid for by federal funds designated for providers of Medi-Cal, California’s Medicaid program, according to Newsom’s Department of Finance.
SB 525 is one of the most expensive laws California has seen in years and comes as the state faces a $14-billion budget deficit that could grow larger, if revenue projections continue to fall short.
Advertisement
The costly legislation — promoted by unions as a way to curb the healthcare worker shortage and in turn improve patient care — was signed into law even as Newsom has warned about the state’s shaky financial future, vetoing dozens of bills last month in the name of cost savings.
“With our state facing continuing economic risk and revenue uncertainty, it is important to remain disciplined when considering bills with significant fiscal implications, such as this measure,” Newsom said repeatedly in veto messages, rejecting some bills that had far lower cost projections than...
Mumbai: Senior Congress leader Vijay Wadettiwar on Sunday demanded that cases should be registered against former Amravati Lok Sabha member Navneet Rana and BJP Rajya Sabha MP Anil Bonde for alleg...