NORWICH – The Chenango County Board of Supervisors is saying “No” to the proposition of raising the minimum wage in New York State.
On Monday, members of the County Board passed an official resolution opposing a minimum wage increase, alleging that the benefits of a wage increase are “greatly offset by the negative consequences of same, especially in rural Upstate New York.”
The state minimum wage, currently at $9 per hour, is proposed to go up to $15 per hour for fast-food chains in New York by 2021; but Governor Andrew Cuomo aims to raise wages to $15 an hour for all workers in New York City by 2018, and for the rest of the state by 2021.
Despite good intentions of providing workers with livable wages and lifting New Yorkers out of poverty, the county board says that raising the minimum wage will have adverse affects that will push employers out of the region – and put people out of a job.
“It’s a job killer all the way,” said Smyrna Supervisor Michael Khoury.
Khoury said businesses are already struggling under the weight of regulations such as workers compensation, health insurance mandates, overhead, and high taxes. Increasing wages may be the straw that breaks the camel’s back, he said.
“There’s a law of unintended consequences ... You’re going to end up pushing companies that are really on the brink right now.”
According to studies cited in the County Board’s resolution, the labor market in New York would decrease by an estimated 200,000 to 432,000 jobs, with proportionately larger employment decreases in the upstate regions. But a bigger concern, said Smithville Supervisor Fred Heisler, is the closing of the wage gap between new, entry level workers and seasoned workers with more experience.
Heisler reasoned that wage increases for minimum wage employees would spark demand for wage increases across the board. “I’ve never heard anyone push this discussion,” he said. “That to me is the unintended consequence ... I just don’t see how this doesn’t affect the whole system.”
Some county officials also pointed to the effect wage increases may have on local taxpayers who fund public employees.
“This is going to impact county government, school districts, and local governments. I know in many cases, we’re going have employees in the county that don’t make that much money,” said Guilford Supervisor George Seneck.
Seneck also noted that rural, low-enrollment school districts like Gilbertsville-Mount Upton (the school district from which he’s retired) will have estimated increased staff expenses of nearly $160,000 per year should the minimum wage be raised.
“What’s going to be the cascading affect is that we’re going to have to raise taxes,” Seneck said.
But Columbus Supervisor Tom Grace had a different argument. Raising minimum wage means more money flowing into the local economy, said Grace. What’s more, it means less people becoming dependent on government services.
“The essential premise of this resolution, and of this study, is that if we raise the minimum wage, there are going to be fewer jobs,” said Grace. He also said other studies exist that support the concept of a wage increase, and that the proposal is actually favored by hundreds of Congressional leaders and business owners.
“I’m not here to argue that I’m an expert on minimum wage,” added Grace, “but I think you’re getting only one side of the issue here. I don’t think you have considered the overall impact of raising the minimum wage; so I ask you not to support this resolution.”
Ultimately, the resolution opposing an increase in the New York State minimum wage to $15 per hour was passed by a majority of the County Board, with only Grace voting it down.
A copy of the resolution will be forwarded to the offices of Gov. Cuomo, as well as senators James Seward and Fred Akshar, and assemblymen Gary Finch and Clifford Crouch. Copies will also be sent to other New York counties and the New York Association of Counties.