California Leaders Delay Health Care Minimum Wage Increase to Balance Budget

Published on June 26, 2024

With the state facing a significant budget deficit, California Gov. Gavin Newsom and legislative leaders have agreed to delay the implementation of minimum wage increases for health care workers. “This agreement sets the state on a path for long-term fiscal stability—addressing the current shortfall and strengthening budget resilience down the road,” Mr. Newsom said in a June 22 press release announcing the agreement. With a budget shortfall of at least $46.8 billion impacting the state—after another $17.3 billion was solved in April—the plan includes cuts to hundreds of programs, in addition to spending deferrals and delays. Also at issue is Senate Bill 525, authored by Sen. Maria Elena Durazo and signed into law in 2023, which set higher wages on a tiered scale based on the health care system—the 12 largest systems in the state would need to pay at least $23 per hour and smaller and rural systems’ wages would be set to at least $18 per hour—with an original start date of June 1....

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