State will provide emergency funds to offset minimum wage hike

Regional News

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Arizona health officials announced an emergency infusion of funds for private contractors serving the elderly, the physically disabled and individuals with developmental disabilities to help offset the costs of the state’s new minimum wage.

Roughly $46.8 million in additional funding will be provided between January 1 and June 30, the end of the fiscal year, according to figures released Wednesday afternoon by the Arizona Health Care Cost Containment System, or AHCCCS.

Those dollars will help cover some, but not all, of the cost of a higher minimum wage that must be implemented by care providers starting January 1 as mandated by the voter-approved Proposition 206.

The new law will raise the minimum wage from $8.05 to $10, and also affords full-time workers paid sick leave benefits. By 2020, the minimum wage must rise to $12 an hour, meaning the issue of new funding for private care providers will surface again in each of the next four years.

Rates that dictate how much it costs to provide services for Arizona’s vulnerable populations were adjusted to offset the costs of Prop. 206 and ensure that providers can stay open, according to Christina Corieri, a senior policy advisor to Gov. Doug Ducey.

However, that doesn’t mean that providers won’t still feel the budget crunch of wage increases, she acknowledged.