Posted on 05/31/2006 9:37:34 PM PDT by NormsRevenge
Legislation that would give 1.4 million minimum wage earners a $1-an-hour pay raise and then tie their wages to increases in inflation was approved by the Assembly Wednesday night, setting the stage for a possible election-year fight with Gov. Arnold Schwarzenegger.
The 43-30 vote sent the measure by Assemblywoman Sally Lieber, D-Santa Clara, to the Senate, which planned to vote on an identical increase by Sen. Gil Cedillo, D-Los Angeles, on Thursday.
Both bills would raise the minimum wage from $6.75 to $7.75 an hour in two 50-cent steps - the first on July 1, 2007 and the second on July 1, 2008. They would then require annual cost-of-living adjustments in the wage each subsequent Jan. 1 to keep up with inflation.
Schwarzenegger, who vetoed two previous attempts to raise the wage, now supports the $1 increase but opposes the automatic annual inflation adjustments. He's asked the dormant state Industrial Welfare Commission to approve the $1 an hour raise without cost-of-living increases.
The commission, which has been without funding to operate since lawmakers cut off its budget in 2004, is scheduled to meet Friday for the first time in about three years to take up the governor's request.
"A dollar increase in the minimum wage would save taxpayers over $2 billion a year in decreased costs for public assistance programs," Lieber said. "Millions of Californians are currently living below the federal poverty line despite working full time."
Republicans said the a raise in the minimum wage would cost California businesses $9 billion, forcing them to lay off employees and scale back their hiring of unskilled workers.
"In the very end you're hurting the very people you are trying to help," said Assemblyman Ray Haynes, R-Murrieta.
Democratic leaders say they hope to negotiate a deal with the Republican governor over the size of a minimum wage increase and on other pending labor issues such as changes to the state's workers compensation law. But the administration says the minimum wage increase should not be tied to other issues.
That could set the stage for another Schwarzenegger veto or vetoes, if both bills reach his desk later this summer.
Business groups, which are closely allied with the governor, object that the automatic increases in the Lieber and Cedillo bills could hit employers during economic slumps when they can least afford it. But Cedillo and Lieber say previous increases in the wage show they come in a predictable pattern that could be built into business budget planning.
California's current minimum wage is the nation's seventh highest along with those of four other states, behind Washington, Oregon, Connecticut, Vermont, Alaska and the District of Columbia, according to the U.S. Department of Labor. Wage boosts in New York, New Jersey and Hawaii are scheduled to move those states ahead of California later this year or early in 2007.
They can raise it as high as they want. We have enough illegals to make up the difference. And when they make our current crop of illegals legal, we'll just get some more.
Cain't thank of a thang ta add ta that!!!
We can always count on the California dems to try to drive all businesses out of California. Idiots.
Real smart ay....making it harder on small businesses all the time. High fuel costs because you libs howl over new drilling for oil plus you libs wont reduce the state tax on fuel. Real Estate prices are sky high..so are taxes...when you see California businesses pull out where are you going to get the golden eggs from? The illegals? Fagetaboutit.
I guess this spells the end for legitamite, legal low wage jobs. Why hire a legal citizen when you can get an illegal one for half the price, and who won't complain about things like coffee and lunch breaks, and hours of work?
I love it when lefty's screw themselves.
Either stupid or evil.
Stupid that they don't understand the downsides on the state economy.
or
Nefarious plan to attract more illegals to the state to permanently secure the Democrat machinery's hold on power there?
The "millionaire's tax" state income tax can't be far behind in CA.
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