Stop the Minimum Wage Hike

Stop the Massive Wage Hike
It Hurts the People it’s Supposed to Help   

Portland Wins. The rest of Oregon loses.

Once again, the Portland politicians and Salem special interests think they know what’s best for the rest of Oregon. They don’t have a clue.

A massive wage hike kills small business jobs and forces schools and local governments to cut services or raise property taxes. Jobs in hospitality, tourism and agriculture will be especially hard hit. Fixed-income seniors, working families and college students will feel the sting.

Oregon doesn't need to revisit its minimum wage
“At $9.25 per hour, Oregon's minimum is already one of the nation's highest – and it's adjusted annually to account for rising consumer costs. This state may have some problems, but the minimum wage isn't driving them…But the change will have consequences, including higher labor costs for many employers, who will look for ways to mitigate them. They could do this by hiring fewer people, automating work where possible. They also could offset higher hourly wages by reducing other benefits or by raising prices. It's fanciful to assume they'll respond to what is, in effect, a hefty new tax on labor by shrugging their shoulders and saying, "oh, well."

—February 2, 2016, The Oregonian

Beware Of Unintended Consequences

Learn the Facts:

A massive mandated wage hike will kill jobs. Research estimates 62,700 lost Oregon jobs. Hospitality and agriculture small businesses will be especially hard hit. Teen unemployment will go up. 1 “SB1532-1 Minimum Wage Increase: Seven Year Phase-In Cannot Hide The Job Losses,” Eric Fruits, Economics International Corp. Feb. 1, 2016.

Cash-strapped schools will have even less to spend on educating our kids. For example, the Hillsboro School District estimates the mandated wage hike will cost $4.4 million – which equals 51 teachers added in 2015. 2 Hillsboro School District Board Packet, Jan. 12, 2016 and news reports.

Local governments will have to cut services or raise property taxes. Linn County estimates the mandated hike will cost $2.25 million a year – requiring cuts in law enforcement, social services or higher property taxes. 3 Letter to Gov. Kate Brown from Linn County Board of Commissioners, Jan. 28, 2016

Fixed-income seniors, working families and college students will get stung. The massive wage hike will raise the cost of everyday essentials like food and child-care. Some families will lose food stamp and child care assistance and college work-study students could lose financial aid.

Killing Small Business Jobs Across Oregon

Forcing Local Government Service Cuts or Higher Taxes

Raising Prices on Fixed-Income Seniors, Families

A dramatic minimum wage hike has wide-ranging, unintended consequences for all Oregonians

Here’s why:
Cash-strapped school districts will have even less to spend on educating our kids

 

Local governments will be faced with two choices: Cut services or raise property taxes

 

Low-income families would lose tax benefits and state benefits, such as food stamps and child care assistance

 

While advocates for higher wages blame large corporations for income disparities, small businesses and customers will be most affected

Dramatically increasing the state’s minimum wage threatens thousands of Oregon jobs and disrupts an already fragile economy

  • One Oregon economist reports job losses in our state would be 62,700. 13 Eric Fruits, Economics International Corp. Feb. 1, 2016.
  • Employers have already announced they’ll move to another state or reduce employment by shifting from manual to mechanized operations. 14 Joint House and Senate Committee hearing Jan. 14, 2016
  • Oregon has one of the highest unemployment rates in the nation yet our state continues to lag behind the country in per capita income.
  • The unemployment rate for Oregon teens ages 16 to 19 was 27.4%. National estimates indicate youth job losses would rise 1 to 2% for every 10% increase in minimum wage.

Portland politicians keep telling us that their policies will be good for all of us. Really?

  • Oregon’s urban centers are recovering from recession but Oregon’s rural and coastal counties continue to suffer higher unemployment, lost jobs.
    • Unemployment on Oregon’s Coast, for example, is substantially higher than Oregon’s average.
    • Coos, Lincoln and Lane counties have yet to gain back the jobs lost during the recession.
  • Rural counties, communities dependent on tourism and/or natural resource industries have a larger share of minimum wage jobs and would be disproportionately affected by large wage increases. 15 Oregon Department of Employment, February 2016
  • A dramatic increase in the wage would raise the cost of production and make Oregon’s agricultural products less competitive on global markets.
  • There’s nothing in state law prohibiting Portland area employers from paying workers higher than minimum wage.

SB 1532-13

Big hike in minimum wage, big drop in working Oregonians

Last minute amendment cannot stop job losses

Source: Eric Fruits, Ph.D. / ECONOMICS INTERNATIONAL CORP. - Prepared February 4, 2016

News & Resources

Minimum-wage bill's unknown costs will mean real cuts in counties: Editorial Agenda 2016

http://www.oregonlive.com/opinion/index.ssf/2016/02/minimum-wage_bills_unknown_cos.html

Bend Bulletin Editorial: Don’t create unfair minimum wage law

http://www.bendbulletin.com/opinion/3966403-151/editorial-dont-create-unfair-minimum-wage-law#

Editorial: Oregon doesn't need to revisit its minimum wage

http://www.oregonlive.com/opinion/index.ssf/2016/02/oregon_doesnt_need_to_revisit.html

Brown's revised wage proposal criticized at first hearing

http://www.dailyastorian.com/browns-revised-wage-proposal--criticized-at-first-hearing

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