Prepared for House General

JFO/jm; 23 April 2019

Amendment to S.23, Minimum Wage Bill
The Amendment creates a General Fund shortfall of $1.6 million in FY 2020 and creates pressure on the
Medicaid budget cap.
The Amendment creates a General Fund shortfall of about $27.9 million over 5 years.

FY 2020 Costs
The Amendment requires $6.0 million in gross dollars to raise wages of health care workers in home
health agencies, nursing homes, and other agencies by the same percentage as the increase in the
minimum wage.
$5.2 million in gross dollars comes from raising the wages above the new minimum wage.
FY 2020 State Shortfall
The State’s share of $6.0 million is $2.8 million.
Funds available to the State in FY20 are $1.2 million, leaving a shortfall of $1.6 million.

5-Year Costs
For 2020 through 2024, the Amendment requires about $86 million to raise wages of health care
workers at the specified agencies.
$68 million comes from raising the wages above the new minimum wage.
5-Year State Shortfall
The State’s share of $86 million is $39.6 million.
The net fiscal gain to the State in FY 2024 is $11.7 million, leaving a shortfall of $27.9 million.