N.Y. (PIX11) — The plan for raising New York’s minimum wage that is already higher than the federal rate is outlined in Governor Kathy Hochul’s budget proposal.
On Wednesday, she laid out her proposals for the upcoming fiscal year 2024, one of which is raising the minimum wage to keep up with rising costs.
As Hochul mentioned in her State of the State address in January, low-income residents have seen their monthly costs for goods and energy rise by more than 13% over the past two years.
Read more: Injured Boy’s Basketball Superstar Pettiford Verbally Commits to His Future
That’s the last straw for low-income families. Consequently, she proposed a plan to index the minimum wage to inflation in her State of the State address, citing concerns over fairness and social justice.
If prices rise, wages will too. By following the lead of other states that have adopted a similar policy, we will establish limits on future increases to give businesses some stability while leaving room for manoeuvre in the event of a downturn.
According to Hochul’s proposed budget, the minimum wage will increase annually in tandem with regional CPI. In order to prevent the price hikes from having a negative impact on businesses’ ability to hire new workers, they would be capped and temporarily halted if necessary.
Read more: Hearing on the Atlantic City casino Smoking Ban Bill Is Scheduled for February 13.
An additional $38 million in state funding is included in the governor’s proposed budget to cover the cost of the hikes. She estimated that 900,000 people in the workforce would be affected.
Women, many of whom are single mothers, and people of colour make up a disproportionate share of those workers, Hochul said in her State of the State address.
“More money in their pockets is good for them and our economy as a whole because it circulates through the local economy.”