As the representatives of Tulare County's first and fifth supervisorial districts, we urge a NO vote on Senate
Bill 525 (SB 525) by Senator Durazo. SB 525 imposes a top-down wage increase that will jeopardize our local
hospital's ability to provide the care our constituents deserve.
For example, Kaweah Health estimates a labor cost increase of $25 million a year with the passage of SB 525. This does not take into consideration pay increases for exempt employees who must be paid at least two times the hourly rate of non-exempt employees. Our hospitals will be forced to reduce access to medical services, increase health care costs, and diminish health care employment opportunities to stay fiscally solvent.
As a result of SB 525 hospitals will be forced to use every cost saving strategy at their disposal, including
offering fewer elective services, laying off workers, reducing schedule flexibility for remaining staff, and
seeking higher reimbursement rates from health plans. Staff retention, access and affordability will be severely reduced as services are cut and rate increases are passed onto the consumer. This is counter to the
administrations expressed goal of reducing costs within the healthcare system and making healthcare more
affordable for middle-income Californians.
A twenty-five (25) dollar minimum wage for healthcare workers is not sustainable for our strained healthcare
system. For these reasons we strongly urge a NO vote on SB 525.
Sincerely,
Dennis Townsend, District Five
Tulare County Board of Supervisors
Larry Micari, District One
Tulare County Board of Supervisors
cc: Senator Hurtado, Senator Grove, Shaw Yoder Antwih Schmelzer & Lange