Johnson cited pleadings submitted by two state agencies that claim that boosting the minimum wage will force them to spend more. In the case of the Arizona Health Care Cost Containment System, the states Medicaid program, the issue is the contracts it has with private firms to provide things like nursing home and in-home care, contracts built on the current minimum wage of $8.05 an hour. AHCCCS officials said they are planning http://www.lendacademy.com/overview-small-business-loan-funding/ to increase payments by close to $50 million to help contractors who say they may go out of business if they have to pay their workers more but the state reimbursement rate remains the same. The Industrial Commission of Arizona, which polices the states labor laws, contends the change in the wage and the new mandate for paid time off will require, at the very least, new signs. It also claims it will have to hire more staff to enforce the personal leave policy. But Kiley said nothing in Proposition 206 actually forces either agency to increase its budget. Thats backed up by AHCCCS own legal filings which conceded that an increase in payments to providers is not automatic but is based on several factors, only one of which is what contractors pay their workers. But Johnson said its irrelevant that Proposition 206 itself does not tell state agencies to increase funding.
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