State Medicaid agency sides with foes of minimum wage boost

Regional News

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Arizona’s Medicaid agency is siding with opponents of a voter-approved increase in the minimum wage by arguing in court papers that it is required to spend money because of Proposition 206.

The filing contradicts the position of the Attorney General’s office, which argues that the initiative approved in November mandates no new state spending and there’s nothing in the law that requires the state to increase wages to its contractors.

The measure raises the minimum wage from $8.05 an hour to $10 on Jan. 1 and to $12 in 2020.

A judge is set to hear arguments in the case brought by the Arizona Chamber of Commerce and Industry on Tuesday afternoon.

The state Medicaid program has decided to increase the rates it pays to nursing home, home health aide and developmentally disabled program providers on Jan. 1. That’s expected to cost $48 million for six months.

The Chamber argues that the measure approved by 58 percent of the voters saddles the state with new costs without identifying a funding source and claims Proposition 206 illegally added a second, unrelated issue, mandatory paid time off.

Assistant Attorney General Charles Grube argues in his court filing that there is no mandatory state spending triggered by the new law and the time off requirement is related to wages.