California governor Gavin Newsom (previously at Boing Boing) last month signed a law raising the mininum wage for fast food workers to $20 an hour, and has now signed one that will raise healthcare workers’ to $25 an hour, taking effect over the next ten years.
It was somewhat unexpected for Newsom to sign the law. His administration had expressed concerns about the bill previously because of how it would impact the state’s struggling budget.
California’s Medicaid program is a major source of revenue for many hospitals. The Newsom administration had warned the wage increase would have caused the state to increase its Medicaid payments to hospitals by billions of dollars.
Labor unions say raising the wages of health care workers will allow some to leave the state’s Medicaid program, plus other government support programs that pay for food and other expenses.
Sometimes politicians become angels when labor unions flex their wings.