- As New York Gov. Cuomo's budget heads to Legislature, some senators have expressed concern over the complete lack of funding for a gradual increase into a $15 minimum wage for workers in the healthcare and human services fields, the Albany Business Journal reported.
- The budget does include funding for an increasingly higher minimum wage for state and State of University New York workers.
- The healthcare sector could be disproportionately impacted by the pay increase, according to a Senate staff analysis.
When the minimum wage is raised to $15 an hour for healthcare and human services workers, the estimated cost to the healthcare sector is $3 billion, including a $570 million cost to hospitals, according to the Healthcare Association of New York State.
Executive Director of the New York City-based Human Services Council Allison Sesso told the Business Journal, “We very much support a change in New York for a $15 minimum wage... but our budgets are supported by government funding." He added, “I think it’s a worthwhile investment. Otherwise I know our sector won’t be able to compete for workers."
The amount the state of New York pays for healthcare services through Medicaid, and services for people with disabilities has not increased, the Business Journal reported.
"Wages and benefits for healthcare employees are often financed through Medicaid rates and other third-party reimbursement," wrote the authors of the Senate staff analysis of the governor's budget. "Without an identified funding source, the proposal could disproportionately impact the healthcare sector."