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Robb Smith, Executive Director
Interfaith Impact of New York State
646 State Street
Albany, NY 12203
518-463-5652


© Copyright 2006 InterfaithIMPACT of New York State

Last updated
December 2006

Memorandum in Support of a Higher Minimum Wage in NYS
Senate Bill S.3291/Velella; Assembly Bill A.9710/John


March 2004



Interfaith IMPACT of New York State is a statewide advocacy organization representing Protestant, Unitarian Universalist, and Reform Jewish congregations and individuals. We address emerging public policies and their legislative implications from our shared faith traditions, which derive from the historic teachings of our faith in God and humankind, and which call upon all people to participate in the ongoing work of perfecting the world.

Interfaith IMPACT has joined over 150 groups in the "$5.15 Is Not Enough" Coalition. At $5.15 an hour (or $206 a week), New York's current minimum wage leaves a full time worker 25% below the poverty level for a family of three. The buying power of the minimum wage has been dropping since the 1970's, and in NYS, the minimum wage has been unaltered since the Federal change in 1997.

New York State currently has the highest levels of income inequality in the country, and has experienced one of the fastest rates of growth of income inequality during the 1990s. Among high wage states, New York has the lowest minimum wage relative to the average hourly wage. In simple justice terms, it is morally offensive that people could work full time at a job and end up so poorly rewarded that many seek help from government programs. When working families need government support to survive, it means that taxpayers are subsidizing businesses in the state.

Concerns have been raised that increases in the minimum wage at this time will hurt the economy and cause job losses among those we are seeking to help. Fortunately, other states have taken the lead, and our neighbors, Connecticut (at $6.90/hour previously and $7.10 in 2004) and Massachusetts ($6.75/hr), were able to increase their minimum wages above the federal level and did not experience job losses. More generally, evidence has shown that past increases in the minimum wage at both the federal and state level have succeeded in raising working families incomes while causing very little, if any, job losses.

The other concern frequently mentioned is that minimum wage workers are mostly teenagers starting out in the workforce. Actual statistics however indicate that three out of four minimum wage workers are adults, not teenagers, and a high percentage are the main breadwinners for their families.

An increase in the a state minimum wage from $5.15 to $7.10 would directly help over 520,000 New Yorkers. The people affected are workers in low-wage, non-union jobs, such as retail employees like clerks and waiters/waitresses, or home care/day care workers. Such jobs must be performed locally and are not subject to outsourcing. The increased buying power would help our economy and reduce dependence on government programs.

New York must not sit back and wait for the federal government to act. We should take the lead and do it now.

Many local business owners agree that when the statewide minimum is raised, it is still a level playing field and no one gets hurt while employee turnover is reduced, employees can afford better health care, and productivity often improves.

As in years past, the NYS Assembly on March 1, 2004, passed A9710 raising the minimum wage incrementally to $7.10/hr and the focus turns to the NYS Senate to get a comparable bill passed. While some senators have signed on to S3291, many more are needed, and cooperation between the two houses will be needed to resolve differences. There is significant energy around this now, with, and together we can restore some dignity to our lowest paid workers.

Our attention is called to the plight of those in our community who work at jobs that pay only the minimum wage

This is one factor leading to the shameful statistic that we of course need to be attentive to the possible negative consequences of our well-intended request for an increase in the minimum wage.

The numbers of New York State workers receiving poverty wages is significant. Calculations suggest that and would drive increase in wages slightly above this, so that the total benefit would reach 1 million people. The minimum wage increase primarily will help and are being trained at minimum wage before moving up.

 



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