California’s Democratic Legislature is scrambling this week to delay the state’s higher healthcare minimum wage, which is scheduled to take effect on June 1. It’s not uncommon for politicians to reverse themselves, but California Gov. Gavin Newsom is walking back a law that he signed only last October. What’s changed?
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The state’s budget deficit has ballooned to $45 billion. Mr. Newsom projects that the new healthcare minimum wage would cost the state $4 billion more a year owing to higher Medicaid costs and compensation for workers at state-owned facilities. Legislative analyses warned about these costs, but Mr. Newsom signed the law anyway.
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