Minnesota Lawmakers Consider Wage Increase for Long Term Care Workers

To counteract Minnesota's "chroni[c]" nursing home staff shortages, a state legislative task force has recommended raising nursing home workers' salaries by 3% per year, for an annual cost to the state of $45 million for seasonal fiscal years 2002 and 2003, the St. Paul Pioneer Press reports. Another group of legislators is recommending a 6% increase per year, which would cost $80 million. The Pioneer Press reports that a "collision" between Minnesota's "aging population" and its "persistent labor shortage" is nearing "crisis," with 18% of the state's nursing home jobs open. Rep. Fran Bradley (R) said, "I've visited nursing homes all over the state, and they all had waiting lists. They had empty beds, but that was largely because they had staffing shortages." Because state and federal Medicaid money accounts for 54% of nursing home reimbursements, the Pioneer Press reports that state spending can have a "huge impact" on nursing home salaries. Gov. Jesse Ventura's (I) proposed budget contains a 2% state-funded cost of living adjustment for long term care workers in state fiscal year 2003, but no increase is made in state fiscal year 2002. State Human Services Commissioner Michael O'Keefe said that Ventura's "top priorities" -- tax cuts and "policy changes" -- "constrai[n]" the budget, adding that Ventura instead wants to reduce the number of nursing home beds by 5,200 and use the $36.2 million in subsequent savings to move people into less expensive home-based care or assisted living facilities. The Pioneer Press reports that lawmakers say the state must "do both," raising wages while developing "new, less expensive living options" (O'Connor, St. Paul Pioneer Press, 3/1).