Minimum Wage. Ballot Issues 2016

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1 Minimum Wage Ballot Issues 2016

2 Amendment 70 Initiated Amendment to the Colorado Constitution Article XVIII Section 15 Note: Amendment 70 must be placed in the constitution because that is where the current minimum wage law resides. Increases the state minimum wage from $8.31 (current) per hour to $9.30 per hour beginning on January 1, 2017

3 Amendment 70 Thereafter, expands the minimum wage annually by $.90 per hour beginning January 1, 2018, until it reaches $12.00 per hour on January 1, 2020 Note: 2018 $10.20 per hour, 2019 $11.10 per hour, 2020 $12.00 per hour Adjusts the minimum wage each year starting January 1, 2021, based on cost-of-living increases (CPI)

4 Tipped Workers Amendment 70 Minimum wage is currently $5.29/hour plus tips Some make more than minimum wage Some make less than minimum wage Employers must supplement Workers generally affected (retail salespersons, food service workers, child care workers, janitors, home health aides)

5 Background The Colorado Minimum Wage was last set in January 2007 with adjustments up and down for inflation The federal Minimum Wage was last set in 2009 Federal Minimum Wage is $7.25/hour for most workers Federal Minimum Wage is $2.13 for tipped workers States and localities can set a higher minimum wage than the federal government 29 states and DC have minimum wages higher than the federal government requirement

6 Revenue: Amendment 70 State Fiscal Impact May affect income tax and sales tax Expenditures: Increased costs for some agencies Departments of Agriculture (temporary employees), Corrections (offenders), Higher Education (students), Human Services, and Natural Resources

7 Amendment 70 Local Government Fiscal Impact Local Government: May affect local governments to the extent local governments pay minimum wage

8 Amendment 70 Supporters Colorado Families for a Fair Wage, 9to5 Colorado, American Federation of Teachers Colorado, Bell Policy Center, Business for a Fair Minimum Wage, Colorado AFL CIO, Colorado Center on Law and Policy, Colorado Coalition for Medically underserved, Colorado Education Association, Colorado Fiscal Institute, Colorado Immigrant Rights Coalition, Colorado Organization for Latina Opportunity and Reproductive Rights, Colorado People s Alliance, Colorado WINS, Colorado Women s Foundation, Community Language Cooperative, Denver Area Labor Federation, Enterprise Colorado, Focus Points, FRESC: Good Jobs, Strong Communities, Generation Latino, Growing Home, Growing Partners of Southwest Colorado, Interfaith Alliance, Jobs with Justice, 2016 Presidential Candidate Jill Stein, La Plata County Thrive!, League of Women Voters Colorado, Lutheran Advocacy Ministry-Colorado, Manna Soup Kitchen, Metro Caring, Mi Familia Vota Colorado, NAACP-Aurora, NAACP-Denver, NARRAL Pro-Choice America, New Era Colorado Foundation, Padres & Jovenes Unido, ProgressNow Colorado, Service Employees International Union Colorado, Together Colorado, Unite Colorado Springs, Western Colorado Congress, Women s Lobby of Colorado, Young Invincibles

9 Amendment 70 Pros Current minimum wage is too low to provide a basic standard of living (approximately $17,285 or $300 per week after taxes Some must rely on public assistance as well Since 2007 the minimum wage has increased only 21% Rent price in Denver area has increased about 37% Increases the purchasing power of low-income people people that spend rather than save increases in wages helps the economy There would be a positive impact on the state economy

10 Amendment 70 Pros Little or no impact on job loss from modest increases in minimum wage (Center for Economic Policy Research) Some studies show raising minimum wage boosts job retention

11 Nearly half a million Colorado workers (about 1 out of 5) wage workers would get a raise. Nearly three of five minimum wage workers in Colorado are women. They and people of color are disproportionately harmed by low pay.

12 Amendment 70 Research The Impact of a $12.00 Minimum Wage on Women in Colorado Women s Foundation of Colorado and Colorado Women s College University of Denver An increase in the minimum wage would have a significant positive impact on Colorado women and families, lifting many working women and their children out of poverty. The Colorado gross domestic product will grow by $400 million Incomes will increase for 20% of households in Colorado Increasing the minimum wage to $12.00 per hour by 2020 will boost earnings and consumer spending in Colorado. Increasing the minimum wage will contribute to economic growth without significant job losses or increases in consumer prices. Childcare costs are not expected to increase substantially, especially in parts of the state with higher cost of living, such as Denver and Boulder. A minimum wage increase would be a net positive for minimum wage earners and the state of Colorado. It would increase earnings, strengthen the economy, and reduce economic inequity in our state.

13 Economists are all over the map regarding the effect of minimum wage Is it better to pay more for a service covered by minimum wage or to pay for social programs through taxes? Are you willing to pay a bit more for your restaurant served and others?

14 Elasticities = relationship between an increase in the minimum wage and the corresponding change in the number of jobs. How well have the studies controlled for other factors? How many studies have been consulted with differing conclusions? What is the statistical significance and standard error What are the underlying assertions?

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