The state of California has received permission from the federal government to cut wages of home healthcare workers without fear of losing federal stimulus dollars.
The ruling comes as a victory for the Schwarzenegger administration, and a defeat for the Service Employees International Union which had sought federal intervention to stop the cuts.
Cuts in home healthcare worker pay were part of the budget solution passed by Gov. Schwarzenegger and legislative leaders in February. As part of his May budget revision, Schwarzenegger has proposed further cuts for in-home support workers. The Legislature cut IHSS worker pay by $2 per hour, lowering wages from $12.10 to $10.10 per hour. The cuts saved the state an estimated $74 million.
The governor has proposed further cutting home service worker pay to $8 per hour in his latest budget.
Here is the letter from the Obama Administration: