BERLIN — An effort to raise the minimum wage in Maryland appeared to be gaining momentum this week as the 2014 General Assembly session opened on Wednesday, but again, the measure appears to have little support among the local delegation in Annapolis.
A potential minimum wage increase is looming as one of the major issues in the General Assembly session that began on Wednesday as state lawmakers have already begun posturing on the issue. Last year, a bill introduced would have raised the minimum wage in Maryland from the current $7.25 per hour to $10 per hour by 2015. Under that proposed legislation, the minimum wage would have been increased to $8.25 last year, $9 per hour in 2014 and $10 per hour in 2015.
Starting in 2016, the minimum wage would have been indexed, or adjusted annually to keep up with inflation and the rising cost of living. In the first of what will likely be a bevy of minimum wage bills introduced during the current session, House Bill would raise the state’s minimum wage to a flat $12.50 per hour in one fell swoop. However, others will likely favor a gradual increase.
On the session’s opening day on Wednesday, Governor Martin O’Malley said raising the minimum wage was one of his top legislative priorities for 2014. However, the governor appears to favor an indexed increase each year to adjust to inflation. O’Malley said this week 21 states already have a higher minimum wage than the federally mandated $7.25 per hour and none of them have a higher median income than Maryland.
Maryland Attorney General and gubernatorial hopeful Doug Gansler also weighed in on the issue on Wednesday, calling for a substantial increase in wages for thousands in the state’s workforce.
“Fifty years after President Lyndon Johnson declared a war on poverty, our state has the highest median household income in the nation, yet one in 10 Maryland residents live in abject poverty,” he said. “That’s 546,000 Marylanders. Just as tragic, hundreds of thousands lack basic health insurance.”
Gansler said thousands of Marylanders in entry level jobs continue to struggle at the current minimum wage level in the state.
“If you’re working 40 hours a week, you shouldn’t have to struggle to put food on the table or worry about whether you can afford health insurance,” he said. “As the General Assembly returns today, we must work together to increase the minimum wage for hardworking Marylanders and to demand answers about why thousands of people who desperately need health insurance remain unable to buy it on the state’s broken exchange.”
Some counties in Maryland, including the populous jurisdictions in the center of the state including Prince George’s and Montgomery, for example are undertaking efforts to raise their minimum wage on the county level. Any legislation adopted by the General Assembly would apply across the entire state including the Worcester and the Lower Shore, where there has been little political support for the wage hike.
Locally, there appears to be little support for a minimum wage increase in an area with a glut of entry level, seasonal positions. Senator Jim Mathias did not support the legislation last year and said last week he hasn’t changed his position since. Mathias explained despite some indications the economy is recovering, most small businesses are still hurting and a mandated minimum wage increase could have a detrimental effect. He also pointed out the uncertainties of the Affordable Care Act on small business.
“I voted against it in committee last year and I’m inclined to vote against it again this year,” he said. “I appreciate the need for a decent living wage for all workers, but I think we need to entrust that decision to the business owners. These are very uncertain times with the healthcare issues and the unknown costs associated with that, so to add a mandated minimum wage increase right now could be onerous on small business.”
Delegate Mike McDermott (R-38B) is also opposed to a mandated minimum wage increase and expects the issue to become one of the centerpieces of the current session. While he agrees it is difficult for many to get by at the current $7.25, he believes a substantial increase will have an could put a damper on creating new jobs or even sustaining existing positions.
“The minimum wage issue is going to be a very big deal,” he said. “There’s going to be a big debate about that. It’s ridiculous to think people can make a living at the minimum wage at $7.25 per hour, but raising it substantially will have the adverse effect of eliminating jobs. Raising it won’t create jobs, it’s a jobs killer.”
Like Mathias, McDermott believes setting wages should be the decision of the business owners.
“Let the market set these things,” he said. “If you can’t get people to wash dishes for $7 an hour, you’re going to have to raise the pay until you find somebody willing to do that job. If you raise the minimum wage to $10 or $12, then experienced, tenured employees further up the chain will have to see their wages increased as well, putting a further strain on the bottom line for employers.”