Gilroy
– State assembly members have revived legislation that would
raise California’s $6.75 minimum wage by a dollar, less than a year
after the governor vetoed a similar bill.
Gilroy – State assembly members have revived legislation that would raise California’s $6.75 minimum wage by a dollar, less than a year after the governor vetoed a similar bill.
Assembly Bill 48, which passed 49 to 30 in a June 2 vote, would increase the minimum wage to $7.25 in July 2006 and to $7.75 in July 2007. It also provides for future increases based on the rising cost of living, as measured by the Consumer Price Index.
Assemblyman Simon Salinas, D-Salinas, joined others in the party-line vote in support for the legislation.
“One of the big concerns the assemblyman has is jobs and housing affordability in his district,” said Salinas’ Chief of Staff Frank Molina. “(The city of) Salinas is ranked fourth of areas least affordable to live in the country. Ultimately, he voted for it because folks need to improve their lot.”
California’s minimum wage is the lowest among West Coast states, according to a state analysis of the legislation.
The sponsor of the bill, the California Labor Federation, has argued that increased minimum wages would help decrease reliance on public assistance programs.
The California Chamber of Commerce and other opponents argue that a higher minimum wage would increase costs on businesses that are already strained by high energy costs, workers’ compensation premiums, and unemployment insurance tax rates.
“The Gilroy Chamber (of Commerce) has not taken a position, however the California chamber has pegged that as a job killer bill,” said chamber president Susan Valenta. “They estimate it would increase the costs of doing business in California by over $2 billion. That’s a significant increase and it really keeps California in a precarious situation in trying to compete with other states.”
A similar bill she introduced last year made it through both houses of the state congress before Governor Arnold Schwarzenegger vetoed it in September, citing the already high costs of doing business in California.
AB 48 will now head to the State Senate Rules Committee for further review, before heading to the Senate floor for a final vote.
Assemblywoman Sally Lieber, D-San Jose, introduced both pieces of legislation. She hopes that the political climate in the state has changed such that the governor would “take a fresh look” at the minimum wage.
“We’re going to continue pushing this until it gets a signature,” Lieber said.
