What the federal government gives, it can also take away. The state of California is learning this the hard way as the Obama administration threatens to rescind stimulus funds if the California state government doesn’t restore wage cuts to the unionized home health care workers.
Two things at play here: the intimate relationships between unions and Democrats and the White House’s disregard for a state.
The unions in questions are the powerful Service Employees International Union (SEIU) and United Domestic Workers (not in the motherly sense). In fact, it was the SEIU which went to the W.H. to ask for a ruling on this matter.
This also shows the administration’s disregard for a state. The wage cut is a necessary step in keeping California afloat as it’s operating on IOUs already. These health care workers aren’t the only ones affected by wage cuts. The state legislature passed a state law but looks like the W.H. has a problem with that. Does the administration truly have the state’s interest in mind?
States which have accepted the stimulus money should take note. This money comes with strings attached — many which aren’t to the states’ benefit. Be warned.
