Arthur Phillips, policy analyst for the Maine Center for Economic Policy, a progressive think tank, said that without the COLAs, the average direct care worker will lose out on $1,690 in expected wage increases through 2027.
Phillips said cutting out COLAs will also renege on a state law that reimburses nonprofits so they can pay 125% of the state’s minimum wage. Because the state minimum is $14.65 per hour, the reimbursement rate should allow nonprofits to pay $18.31 per hour.