The ultimate impact AB 257 will have on the state budget will depend on to-be-made decisions by the council. But even with a small increase in fast-food workers’ wages resulting from the bill, the net fiscal effect is likely to be positive for the state.
This blog post focuses on one policy idea currently being considered by state policymakers to address rising health care costs – creating an Office of Health Care Affordability.
The American Rescue Plan substantially increases premium subsidies for coverage purchased through health insurance exchanges like Covered California. We project that these subsidies will help over 1.6 million Californians, including 151,000 individual market enrollees who will qualify for subsidies for the first time and 135,000 uninsured people who will become insured.
Even after the American Rescue Plan (ARP) substantially increases premium subsidies for health insurance coverage purchased through Covered California, large inequities remain in who has access to affordable coverage. Nearly 3.2 million Californians will remain uninsured in 2022, or about 9.5% of the population age 0-64, according to our projections. The highest uninsured rates will be among undocumented Californians (65%) and those eligible only for insurance through Covered California (28%).
California’s 2021-22 budget will have an enormous impact on the nature of California’s recovery from the COVID-19 pandemic. The Governor’s 2021-22 budget proposal would restore some critical funding for public health and education, but it will not be sufficient to get California’s economy and low-income Californians back on track. To avoid a prolonged economic downturn, and further damage to California’s most vulnerable residents, California needs to make a much more significant investment in the drivers of economic growth.
Experience has shown that prevailing wage actually accelerates solar development. In California, the predominate use of union labor on utility-scale solar projects has fortified political support from organized labor for legislation and regulatory policy that continues to accelerate in-state solar development.
Jobs v. environment is a false choice. And with the pandemic-induced economic downturn and the fires hurting Californians around the state, it’s clearer than ever that we must make meaningful progress on both fronts simultaneously, crafting an economic recovery that advances equity, climate resilience, and job quality.
The ACA covered millions of people and reduced the racial and ethnic disparities in health coverage in California; to take away these coverage options especially during a global pandemic and recession would exacerbate racial and ethnic inequality in California.
The ACA expanded coverage options available to low-income Californians and unemployed workers; to take away those options during a global pandemic and recession would compound the hardships faced by low-income households.
Overturning the ACA would reduce annual federal funding to California by $28.8 billion in 2022, the year of focus for this analysis. Many Californians’ jobs are also at stake should the ACA be overturned. California would be projected to have 269,000 fewer jobs, $29.3 billion less in state GDP, and $2.2 billion less in state and local tax revenue, compared to if the ACA remains in effect.
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