California’s minimum-wage hikes hit the budget reality buzz saw

by Admin
California's minimum-wage hikes hit the budget reality buzz saw

To the editor: Your article that mentioned the state’s decision to defer its mandated minimum-wage increase for healthcare workers because of the budget emergency pointed to a classic problem. (“Newsom, lawmakers use cuts, reserves and ‘fiscal emergency’ declaration to solve budget deficit,” June 22)

California recently mandated a $20 minimum wage for some, but not all, food service workers. The economic implications of these two measures were completely predictable but apparently of little or no concern to the special interests that supported them and the state officials who passed them into law.

But now the state is forced to face the economic reality of balancing the budget — and, amazingly, it can’t be done with the mandated healthcare worker wage increase.

Of course, lawmakers didn’t decide to do anything about the $20 fast-food minimum wage, which has similar economic impacts — although not directly on the state budget.

It’s nice when you get to make, and remake, the rules. It would be nicer for all of us if California lawmakers would think about the consequence of their actions on the public, and not just on their special interests, before they take them.

Kevin Daly, Newport Beach

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