Posted on 08/21/2006 6:31:39 PM PDT by NormsRevenge
SACRAMENTO
California's minimum wage will increase by $1.25 an hour over the next two years under a deal struck Monday between Gov. Arnold Schwarzenegger and legislative leaders.
The agreement ends, at least temporarily, a stalemate between the governor and Democratic lawmakers and clears a political hurdle for Schwarzenegger as he seeks re-election. Both sides agreed a raise for the lowest-income workers was necessary but differed over whether it should be accompanied by automatic annual increases.
The governor has vetoed two previous attempts to raise California's minimum wage, which is far higher than the federal rate of $5.15 an hour but lags the rates in several other states.
Schwarzenegger had sought a $1-an-hour raise over two years, but agreed during negotiations to boost the wage from $6.75 to $8 an hour after Democrats dropped their demand for annual increases to keep up with inflation.
"We asked ourselves the practical question that anyone of sound mind would ask: Would poor people prefer a $1.25 raise, or a bill that has everything they want but it never materializes?" Assembly Speaker Fabian Nunez, D-Los Angeles, told The Associated Press in a telephone interview late Monday.
If the agreement is approved by the Legislature and signed into law, the minimum wage would increase by 75 cents in January and 50 cents in January 2008. The Senate is expected to begin considering the proposal on Thursday.
Schwarzenegger issued a statement describing the compromise as a "common sense" solution that would lead to a higher wage for working Californians without hurting the economy.
"I have always said that when the economy was ready, we should reward the efforts of California's hard-working families by raising our minimum wage," Schwarzenegger said. "This is another sign California is coming back stronger than ever."
The California Chamber of Commerce, which has opposed both the governor's and the Legislature's proposals to increase the minimum wage, credited Schwarzenegger for "standing firm" against tying the minimum wage to inflation.
"Raising the minimum wage is one thing, but locking in automatic increases year-after-year, regardless of the condition of the economy or the health of a business, is another entirely. said Vince Sollitto, spokesman for the California Chamber of Commerce.
Sollitto added that the chamber remained opposed to any wage increase.
***California employers prepare to hike prices and do some layoffs.
The "compromise" always favors big-government socialism.
Sorry Arnold. What part of being a Republican and saying government needs to stay out of the private sector don't you understand?
Clearly you are not the man to lead the state into the future.
How does it feel to be finally understood as a political hermaphrodite second only to Hiram Johnson or worse yet, Earl Warren!!! I know you're confused, but this is nothing to be proud of you silly boy... It's absolutely disgusting!!!
Oh! And it makes no sense, either!!!
That's called "damning with faint praise!"
Why is any government in the US, at any level, setting wages? The free market and private enterprise determine wages, not some government nitwit.
I guess some folks consider this a sound conservative decision by Schwarzy. LOL
The Republican legislature here cut a deal with Governor Ed Rendell-Dem to make the minimum wage 7.15 an hour next year in PA.
Rendell is using that in his re-election campaign this year and Arnold will do it in California I'm sure.
On the economic front Wal-Mart's here in PA where I live are making all new hires part-time. They have promised part-timers some benefits as you may have heard but I think its significant that they do not hire full-time any more off the street.
This could be a reaction to rising minimum wages around the country.
Compromise is usually the result of two different approaches to an unavoidable outcome. The use of the term in this particular situation was also intended to convey a working relationship with the legislative majority. A bipartisan agreement between those cantankerous Democrats and a great leader working in the best interest of the little guy and the recent immigrant.
So what is the problem? Neither circumstance applies to this situation.
1) As the legislature is currently configured, overriding a gubernatorial veto was impossible. There was no unavoidable outcome. The legislation was dead without the governor's support and the naked use of the CAGOP's financial purse strings as they effected Republican legislators in an election year.
2) The compromise was not with the legislative majority but with with the minority and compromise is a polite term for for financial blackmail in this case. Mr. Republican lawmaker: If you don't suppoprt the Austrian in his bid for reelection we won't support you in your bids for reelection.
I operate a children's home in California. The state pays $7.68 per average hour to the people that take care of the the state's most disadvantaged and troubled children. The last (about 3%)raise given this industry by the legislature was in 2000; before that 1999; before that 1989. On top of that the state moved some years ago to a 40 hour workweek; it had been 54. Thus, employees in this industry lost 25% of their earnings by the change. The state did not care. The state already once raised the minimum wage but gave no increase to this industry, thus marginalizing its pay. Many children's homes that have been in business 80 to 130 years have had to go out of business; they were being paid less that at any other time in their decades and century of business. The kind of employees that you would want to take care of the state's children are now impossible to find; they don't care to be abused. If the state raises the minimum wage again, children's homes in California will in mass be forced out of business; we almost are out now. The California legislature has been in Democrat hands for 40 years. Let nobody say that they don't build their constituencies and reduce the state's deficits on the backs of the state's poorest children! People talk about how raising the minimum wage hurts businesses. Well I am one of those businesses and what raises to the minimum wage do is devastating!
Compromising often leads to compromising positions... ifyaknowwhatImean!
( No more Olmert! No more Kadima! No more Oslo!)
There is only one way to stop these liberals. Elect a majority of conservatives in the legislative branch. That may not be possible in California.
Failing a conservative majority, then a conservative executive. Traditionally, the CAGOP has filled the role of the provider. Some, like Reagan, were substantially conservative and others, like Wilson, were not so conservative but on the whole they were conservative.
The last thing you want to do is to allow a liberal to gain entrance to the executive. The most embarrassing, and destructive, situation is to allow a liberal Republican access to the executive.
This needless, election year, minimum wage promotion by our liberal governor, over the expressed wish of almost all members of his party, is an example of the folly of supporting liberal.
Indeed Schwarzenegger did settle for half a loaf because he knows that he can come back later, after the election, and get the rest and there is absolutely nothing the CAGOP can do about it because the Austrian will be lame duck on January 7.
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