In Gov. Tom Wolf’s proposed state budget, administration officials say increasing the state’s minimum wage to $12 an hour — above the current $7.25 — would shave almost $50 million from public-benefit costs.
The bulk of that potential savings, according to budget estimates, would be from about 100,000 people who would no longer be eligible for Medicaid — a program funded by both the state and federal governments that provides health insurance to poor and disabled individuals.
But some of the potential savings would be canceled out because state-subsidized wages for child care workers and those who care for disabled individuals — fields that in some cases pay below $12 an hour — would increase, according to state estimates.
And while fewer people would be eligible for food stamps under a boost to the minimum wage, the state would realize no savings because the program is federally funded.