What California voters should know on minimum wage, health tax props

The November election is less than 100 days away, and CalMatters will have the lowdown on each of the ballot’s 10 propositions. Today we’re highlighting Proposition 32, which seeks to raise California’s minimum wage, as well as Prop. 35, which proposes to ensure that a tax on health care plans is spent on low-income patients.

While workers in health care and fast food won major legislative victories last year to secure higher hourly wages, Prop. 32 would raise the current statewide minimum wage of $16 to $18 by January.

Labor groups say the measure will help workers with the rising cost of living, though $18 still might not be enough to eke out a comfortable living in the state. But business groups argue that businesses also struggle with inflation and increasing labor costs will force them to lay off staff, cut hours or raise prices.

Learn more about Prop. 32 from CalMatters Capitol reporter Jeanne Kuang in our one-minute video. And take a quiz from CalMatters data reporter Erica Yee to see how you might vote.

Prop. 35 would require tax revenue that the state receives from managed health care insurance plans be spent on care for Medi-Cal patients. Because Medi-Cal, the state-run health insurance program for low-income residents, is funded with both state and federal money, California can use that tax money to request matching federal dollars and help reduce the budget gap. With the state facing a $56 billion shortfall over the next two years, that’s exactly what Gov. Gavin Newsom did this year.

Prop. 35 would instead lock in that money — which is expected to be $35 billion over the next four years — for Medi-Cal and its services, including primary and specialty care, emergency services, family planning, prescription drugs and more.

Health providers, who would receive higher payments, support the measure, as well as both the California Democratic and Republican parties. No formal opposition is registered, but Newsom has raised concerns that restricting how the state can spend that tax revenue “hamstrings” future lawmakers and their ability to balance the budget.

To know more, watch a video explainer on Prop. 35 from CalMatters health reporter Kristen Hwang. And take the quiz from Erica.