A federal judge on Thursday blocked a $2 hourly wage cut for California in-home care workers that was slated to begin July 1, potentially increasing California's budget deficit by another $98 million.
U.S. District Court Judge Claudia Wilken in Oakland issued an oral injunction Thursday ordering the state to continue paying up to $12.10 in wages and benefits to In-Home Supportive Services workers, according to parties on both sides of the suit.
As part of the February budget deal, Gov. Arnold Schwarzenegger and the Legislature approved a cut to $10.10 per hour – $9.50 in wages and 60 cents in benefits.
The move would save $98 million in 2009-10, according to the Department of Finance.
IHSS workers provide care for more than 400,000 residents who require varying levels of assistance to live at home rather than in nursing facilities. In California, 62 percent of caregivers are related to their recipients.
The Service Employees International Union, which represents IHSS workers and filed the suit, praised the decision as an "incredible ruling" that ensures enough caregivers remain in the IHSS system.
"These are vital services for many people," said Dave Regan, executive vice president for SEIU.
But Schwarzenegger administration lawyers plan to seek a stay that would allow the state to impose that cut next Wednesday as planned, according to Department of Finance spokesman H.D. Palmer.
"We can't imagine a legal interpretation that would prevent the state from moving forward to implement this," Palmer said. "We fully expect this decision to be overturned on appeal."
IHSS advocates say the system saves the state money because recipients would otherwise use more costly care provided by nursing facilities. But the Senate Office of Oversight and Outcomes this year also found that the IHSS program lacks sufficient oversight and suffers from fraud and abuse.
Regan said Wilken based her decision on a determination that California failed to adequately study the impact of the wage cut on IHSS services, a requirement of the federal Medicaid Act.
Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548.
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