California's minimum wage is at a forty year low. The value of California's minimum wage has dropped 26% in eight years. A full-time minimum wage worker's income is 32% below the poverty line for a family of three.
Prop. 210 restores the value of the minimum wage by raising it in two steps to $5.75 an hour by 1998.
California hasn't raised the minimum wage since 1998. Prop. 210 brings it to $5.00/hour in 1997, and to $5.75/hour in 1998, restoring its purchasing power.
Two million workers would get an overdue raise. Most work for profit-making businesses. 175,000 minimum wage workers care for elderly and disabled Californians.
The current $4.25/hour minimum wage punishes hard work. Many minimum wage workers must supplement their low pay with food stamps and welfare. According to California Department of Social Services estimates, a $5.75/hour minimum wage would mean smaller welfare payments to tens of thousands of working poor. Taxpayers would save $21,000,000 in welfare costs, and millions more in food stamp reductions.
Work should pay better than welfare. Prop. 210 promotes a work ethic. With Prop. 210 120,000 California household members will become less dependent on welfare.
Minimum wage workers spend their paychecks on food, clothing and other basic necessities. Prop. 210 gives consumers more money to spend, boosting California's economy. Rising wages mean increased sales and profits. Thousands of California jobs were created after the last increase in 1988. Increasing the minimum wage is sound economic policy.
Since 1988, corporate CEO pay is up 108%. Corporate profits are up 68%. Inflation is up 26%. But the California minimum wage has not increased.
Middle class and working people are falling behind. The lowest paid are hit the hardest. Prop 210 is a modest raise for people who play by the rules and contribute to our economy. It's long overdue.
Corporate downsizing has thrown hundreds of thousands of California workers out of good paying jobs. Many discarded workers have been forced to take low paying retail, fast food, and service sector jobs. Today, a living minimum wage is important to more and more workers.
Prop. 210 rebuilds a wage floor that collapsed. Prop. 210 doesn't even fully restore the value the minimum wage had in the 1970's. It will help two million California workers put food on their families' tables. People who work hard should not have to live in poverty.
Rev. Kathryn Cooper-Ledesma, President
California Council of Churches
Dr. Regene Mitchell, President
Consumer Federation of California
Howard Owens, Legislative Director
Congress of California Seniors
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