Proposed $15 Minimum Wage Would Have Costly Impact on County Budgets

MACo Policy Associate, Kevin Kinnally, submitted written testimony opposing the $15 minimum wage by 2023 (SB 962). Counties are concerned this legislation will have significant fiscal and operational impacts on local governments.

MACo’s testimony states,

Counties employ thousands of Maryland residents, including full-time, part-time, seasonal, and grant-funded employees. Full-time and grant-funded employees are generally paid on a salary basis. However, part-time and seasonal employees may be paid on an hourly basis. According to the bill’s fiscal note, raising the minimum wage in such a drastic fashion will cost local governments millions of dollars per year.

As a rule, MACo resists state policies that result in costly or burdensome local implementation. SB 962 would place a significant fiscal burden on county governments. Under state law, counties have no choice but to fund these costs – competing for limited local funds against education, public safety, roadway maintenance, and other essential public services.

Many part-time and seasonal employees work in community services, such as after-school activities, summer camps, and community services for vulnerable populations. Accommodating this legislation could result in significant cuts to those programs.

SB 962 was heard by the Senate Finance Committee on March 15, 2017. The cross-file, HB 1416, was heard by the House Economic Matters Committee on March 7, 2017. Click here for previous Conduit Street coverage.

Follow MACo’s advocacy efforts during the 2017 Legislative Session here.