California Could Lose Stimulus Money Over Home Health Wage Cut
California stands to lose $6.8 billion from the federal economic stimulus package if it does not reverse a provision of the state budget agreement that reduced the state's contribution to wages for home health care workers participating in the In-Home Supportive Services program, Obama administration officials advised Gov. Arnold Schwarzenegger's (R) office this week, the Los Angeles Times reports.
A statement from the Service Employees International Union indicated that the union had requested the ruling.Â SEIU represents many IHSS workers.
In February, lawmakers approved the deal, which is projected to save the state $74 million by reducing the state's maximum contribution to IHSS workers wages from $12.10 per hour to $10.10 per hour.
Rescinding the wage cut would require approval from two-thirds of the California legislature.In a letter Wednesday, the governor asked HHS Secretary Kathleen Sebelius to reconsider the ruling (Halper, Los Angeles Times, 5/8). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.