Minimum Wage Increase is the Next Step in Assembly Effort to Boost Working New Yorkers

April 3, 2012

Albany, NY – Assemblymember Kevin Cahill (D – Ulster, Dutchess) announced the Assembly will continue efforts to focus on the needs of working families that have been slow to recover from the recession. After the enactment of targeted tax cuts and other provisions included in the recently adopted budget, attention will shift to raising the state’s minimum wage. Cahill is co-sponsoring legislation (A.9148) that would increase the rate to $8.50 an hour.

“It is unacceptable that 14 percent of all working New Yorkers are struggling to get by on minimum wage,” said Assemblymember Cahill. “The economy is coming back, but too many working families are getting left behind. The growth in income inequality continues and it is a disparity that must be addressed. Increasing the minimum wage is a good place to start.”

Despite massive increases in the cost of living, the minimum wage has been raised by only 10 cents per hour in the last five years. It currently stands at $7.25. Setting it at $8.50 an hour would impact approximately 1.2 million working New Yorkers and would place our minimum wage laws on par with other similar states. Eighteen states, including neighboring Connecticut, Massachusetts and Vermont – all with wages $8 an hour and up - currently set rates at levels higher than New York. The plan would also call for annual adjustments tied to inflation.

“Tying the minimum wage to inflation will give hard working New Yorkers the assurance that their incomes will, at the very least, keep pace with rising costs and allow them to maintain the purchasing power of their paycheck,” said Assemblymember Cahill. “Acting on this legislation now will build on our efforts to shift the attention back to working New Yorkers. We have pushed through targeted tax cuts, funded unemployment benefits and revived our foreclosure prevention programs; raising the minimum wage is the next step.”

The 2012-13 State Budget continues new tax brackets first established last December in which rates were cut for 4.4 million people. The following measures were included to provide additional relief for individuals and families still struggling to recover from the economic downturn:

• elimination of the state sales tax on clothing and footwear under $110;
• eliminate the MTA payroll tax for schools, both public and private, qualifying small businesses and self proprietors earning less than $50,000;
• $6.5 billion for unemployment insurance benefits;
• $16 million to increase public-assistance grants by ten percent; and
• $25 million for the Foreclosure Prevention Program.

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