The bill will clarify the boundaries for use of state funds under the Mental Health Services Act for mental health outpatient crisis stabilization services.

Governor changes stance on minimum wage after unions flex muscles

Senator John Moorlach (R-Costa Mesa) issued the following statement regarding the announcement of the new minimum wage legislation today:

“California has the nation’s highest poverty rate. One reason is because California has been rated the worst place to grow a business for 11 years straight.

“Instead of adding more road blocks for businesses, we must, first, develop an overall plan for economic competitiveness that will rebuild our economy.  But, absent that blueprint, we have no way of knowing if this minimum wage hike will help or hurt workers and the job growth which California families need.”

January vs. Yesterday

Here’s what the Governor wrote in his budget proposal from January:

…higher minimum wage laws are not free. They raise the operating costs of many businesses, and the state must shoulder higher wages in its programs…
At $15 an hour… the General Fund would face major increased costs, estimated at more than $4 billion annually by 2021.” Gov’s 2016/2017 Budget Summary, page 11

But, after labor unions worked him over, here’s what the Governor said yesterday:

“It’s a matter of economic justice…Remember, you’ve got to listen to the workers. It is quite incredible that there is so much power, so much wealth, yet so many people are struggling on $10 an hour.”  Gov’s news conference, 3-28-16

What Changed?

  • It was reported that the Governor was “flanked by labor leaders;” or more likely held hostage. Labor threatened an expensive November ballot measure making California’s minimum wage the nation’s highest.  Instead, they’ll push that proposal through the legislature.
  • California has been ranked the worst state to do business, 11 years in a row. California also has some of the nation’s highest taxes and regulatory costs. The Governor says the minimum wage will “raise the operating costs of many businesses.
  • Don’t expect excitement among job-creators to locate or expand here in California anytime soon.

This article was released by the Office of Senator John Moorlach.