Gov. Arnold Schwarzenegger has proposed legislation that would
raise the minimum wage by a dollar over the next two years, though
his proposal lacks a mechanism to keep wages in step with rising
prices.
Gilroy – Gov. Arnold Schwarzenegger has proposed legislation that would raise the minimum wage by a dollar over the next two years, though his proposal lacks a mechanism to keep wages in step with rising prices.
The new bill (SB 1167), introduced by State Senator Abel Maldonado (R-Santa Maria), would raise the minimum wage from $6.75 to $7.25 starting in September 2006. A second bump to $7.75 would take effect in July 2007.
Last September, Schwarzenegger vetoed legislation (AB 48) for an identical wage hike that included automatic annual increases to keep pace with inflation. In his veto message, the governor cited the already high costs of doing business in California.
A few weeks later, voters overwhelmingly rejected the governor’s ambitious plans to redefine California’s government by appointing judges to draw political boundaries, capping government spending and limiting the power of unions.
In his state of the state speech last week, Schwarzenegger rolled out a sweeping $222-billion plan to upgrade the state’s infrastructure – everything from levees to schools to highways – that many observers view as a pre-election bid to woo disgruntled voters.
Schwarzenegger suggested in a statement, however, that his turnaround on the wage issue related to the economy rather than his recent political defeat.
“When I ran for governor, I said that we could not afford an increase in the minimum wage unless the economy bounced back,” he said. “Well, the economy has bounced back, so it is now time for those who often work the hardest and earn the least to benefit from California’s growth.”
Assemblyman Simón Salinas (D-Salinas) supported the prior wage bill and predicted debate on the governor’s latest proposal would center on the “indexing issue,” referring to the idea that a dollar pay increase should include a mechanism that pegs wages to the increasing cost of goods and services.
“I think that’s going to be the whole discussion,” Salinas said. “Certainly, if I supported the one with indexing, I’ll support this one. If I was the recipient, I’d rather get a dollar than nothing.”
To read a copy of the bill, visit www.leginfo.ca.gov.
