Both California House Speaker Fabian Nunez and Senate President Don Perata have made new optimistic statements quoted in today's newspapers about a large possible increase in California's minimum wage. If the legislature and the governor are to work out a compromise, they must do it soon, as the current legislative session ends August 31, 2006.
"I think we are really, really close to an agreement," said Nunez. See http://www.sacbee.com/...
"We haven't finalized the deal yet," said Perata. "I think we have some negotiating to do. But that's ( a minimum wage of $8.25) my boundary, and we could get to that boundary."
I think a California minimum wage of $8.25 would be another first down. If it would take effect soon (no effective date appears to have yet been agreed upon), it would give California the highest minimum wage in the country, and would clearly help place additional pressure on other states--including my home state of Pennsylvania--to raise or further raise their minimum wage.
A California minimum wage of $8.25 is still not a touchdown. It clearly will not have a COLA. If it takes effect in 2007, it will be virtually even with the poverty level for a full-time worker with two dependents ($17,260 in salary vs. a projected poverty level assuming 4% inflation of $17, 264. Unless the legislature promptly enacts another increase, even a prompt $8.25 wage will fall below the poverty level.
What the California legislature does in the next few weeks will have a major national influence. It is good that the Democrats are publicly talking of establishing the highest statutory minimum wage in the country--at least until COLA states like Washington, Oregon, Vermont, Florida and others to be establsihed by this fall's referenda pass them.
But it would be wonderful if California could be the first jurisdiction in many years to actually exceed the poverty level. If you are a Californian who agrees on this, let your legislators know.
People's income is largely dependent on a combination of life choices, work ethic, and luck. But how we structure the rules of society plays a role. We can structure society so that we reduce poverty, and, if we could do that, we could also reduce crime, disease, drug addiction, and a general lack of hope.