Posted on 08/22/2006 6:06:18 PM PDT by NormsRevenge
SAN FRANCISCO (Reuters) - California Gov. Arnold Schwarzenegger and state lawmakers reached a deal late Monday to hike the minimum wage to the highest level in the nation, aides said on Tuesday.
The agreement between the Republican governor and the Democrat-led legislature's leaders would increase California's minimum wage by $1.25 over the next year and a half to $8 an hour. The deal calls for an increase of 75 cents an hour next January and a rise of 50 cents an hour the following January.
The new wage would be 25 cents more than initially offered by Schwarzenegger, who vetoed previous bills to hike the state's minimum wage. In exchange, Democrats dropped demands the wage automatically adjust upward with inflation changes.
Schwarzenegger, a fiscal conservative and ally of business groups concerned about the cost of doing business in California, said the state economy had recovered and companies could afford to pay minimum-wage workers more.
"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," he said in statement.
The agreement would benefit low-paid workers, said Assembly Member Sally Lieber, a Democrat who had advanced a minimum wage bill earlier this year. "We have a moral obligation to ensure that the minimum wage keeps pace with federal poverty guidelines. This bill does that," she said.
Business groups and labor unions were not pleased by the agreement, which Democratic lawmakers can pass without votes from minority Republicans.
"We appreciate the governor's opposition to indexing the minimum wage and not walking into automatic increases, but we still oppose increasing the minimum wage," said Michael Shaw, an officer of the National Federation of Independent Business, a small-business advocacy group. "It takes away resources from business owners, who are in the best position to decide how to invest in their companies."
Art Pulaski, secretary-treasurer of the California Labor Federation, said the state's AFL-CIO could live without an inflation-adjusted minimum wage over the near term.
"We realize that from a Republican governor who is so close to big corporations ... that we would never get him there," Pulaski said. "Fortunately, it's an election year, so we leveraged that to push him to do something."
Schwarzenegger is running for re-election against Democratic challenger and state Treasurer Phil Angelides, who is favored by unions, and is moving to improve his standing with Democrats and independent voters who turned against him in a controversial special election he called last year.
The Hollywood icon signed a bill on Monday that aims to make California one of the world's biggest producers of solar energy and is in talks with lawmakers on a bill to cap industrial emissions of greenhouse gas, popular ideas in a Democrat-leaning state where environmental issues rank high with voters.
Angelides said in a statement he would back an inflation-adjusted minimum wage.
"After three years of denying Californians the minimum wage increase they deserve, Governor Schwarzenegger is now trying to save his own job by giving minimum support to the minimum wage," Angelides added.
Gov. Arnold Schwarzenegger, left, gestures as he answers a question concerning the minimum wage increase, during a Capitol news conference, in Sacramento, Calif., Tuesday, Aug. 22, 2006. Accompanied by Democratic Legislative Leaders Fabian Nunez, D-Los Angeles, second from right, and state Senate Pro Tem Don Perata, D-Oakland, right, Schwarzenegger announced the agreement that would raise the minimum wage $1.25, from $6.75 to $8 an hour over the next two years. (AP Photo/Rich Pedroncelli)
California Gov. Arnold Schwarzenegger, center, flanked by Democratic Legislative leaders, state Senate Pro Tem Don Perata, left, and Assembly Speaker Fabian Nunez, D-Los Angeles, second from right, announce that an agreement was reached to increase the state's minimum wage, during a Capitol news conference in Sacramento, Calif., Tuesday, Aug. 22, 2006. 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. (AP Photo/Rich Pedroncelli)
California Gov. Arnold Schwarzenegger, center, gestures as he answers a question concerning the minimum wage increase , during a Capitol news conference, in Sacramento, Calif., Tuesday, Aug. 22, 2006. Accompanied by Democratic Legislative Leaders Fabian Nunez, D-Los Angeles, left, , and state Senate President Pro Tem Don Perata, D-Oakland, right, Schwarzenegger announced the agreement that would raise the minimum wage $1.25, from $6.75 to $8 an hour over the next two years.(AP Photo/Rich Pedroncelli)
Shortly followed by even more business fleeing the state.
I expect Texas to replace CA as the world's sixth largest economy in the next year or two.
I've lived here for 20 of my 37 years...I told my wife on a trip to Colorado about 2 weeks ago that I want out. Working on it right now.
I've had enough. This isn't the straw that broke the camel's back, there were many straws along the way. I've wanted to leave for years...too bad, such a great state and attitude for so long. It's now as blue as it can get and just over run by absolute PC run amok. It's a shame. It was the ideal of the country once. Not anymore.
It's irrelevant. The only people making $8.00 an hour are the illegals. And they're not paying income tax or SS tax.
That would be an amazing feat considering that California's economy is nearly twice as large and growing faster than Texas' economy. So, what's your expectation based on? Did a little birdie tell you in a dream?
Why not $15?
There is folks. Wonder what other conservative efforts he'll launch between now and November.
I lived in San Diego from 1957->1960, 1963->1964,1965->1966, 1968->2002. A bit of travel with my dad in the Navy. I put my house on the market in Dec 2000 and closed Feb 2001. My family moved to the house in Idaho in Dec 2000. I was stuck on a contract in San Diego until April 2002 when I moved permanently to Idaho.
Good luck hunting for new digs.
I guess the upside to this is that California will be too expensive for illegal aliens to live there.
Invitation to the poor "latin" Americans....
California is the land of gold and opportunity.
You can make as much in a hour as you do in a day in your country. And no Hugo Chavez to harm you.
What a deal!
The refrigerator box condos under bridges and in canyons will continue to be affordable. There is money to be made selling illegal drugs and burglarizing property as well. They will get along just fine. Medical is covered at the ER...at YOUR expense. Ditto for schooling.
That's fine. The more illegals who go to CA, the fewer who end up in NC.
The hospitality industry employs more people than any other industry in the state. This will hurt the industry and drive some operators out of business. The net result will be fewer jobs, especially for those entering the job market for the first time, and for those who need a job the most. Unions with contracts tying pay hikes to the minimum wage will be the winners. Hardly irrelevant and about as stupid, economically speaking, as can be.
It's too big, people on the lower rungs are going to take a hit.
Most illegals make more than that.
And when more business leave CA, everybody will wonder why?
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