Kentucky Governor Raises Minimum Wage With Executive Order

[frigidmagi]

NYTimes

Gov. Steven L. Beshear of Kentucky signed an executive order on Monday raising the hourly minimum wage for certain state employees to $10.10. The change, which angered state Republicans and drew praise from the governor’s fellow Democrats, affects almost 800 employees, including those making the current hourly minimum of $7.25.

In a telephone interview on Monday, Mr. Beshear called on his fellow governors nationwide — particularly those with unsympathetic state legislatures — to follow suit with similar executive orders. “There are a number of states where the chief executive favors raising the minimum wage but has issues with their legislature in terms of getting a statewide minimum wage increase passed. I would certainly encourage them to take a step like this,” Mr. Beshear said.

In January, Pat Quinn, the departing Democratic governor of Illinois, signed an executive order raising the minimum wage for employees of state contractors, but it was rescinded by the new Republican governor, Bruce Rauner.

Mr. Beshear’s action drew criticism here and in Kentucky from right-leaning groups who argued that the increase could strain the state’s budget and hurt its economy as it continues to recover from recession. Others praised the move, suggesting it would move the state forward even as lawmakers continue to fight over the issue.

The executive order comes as efforts in the Kentucky legislature to raise the minimum wage for all employees statewide to $10.10 an hour have stalled. Legislation passed the Democratic-controlled House of Representatives in February, but was a nonstarter in the Republican-led Senate.

The Senate president, Robert Stivers, a Republican, while not directly critical of Mr. Beshear’s action, warned that the costs associated with the increase — estimated at $1.6 million annually by the governor’s office — would add a sizable burden to the state’s already-stretched budget. “This decision came as a function of the executive branch; hopefully it doesn’t cause any future-year fiscal problems,” Mr. Stivers said in a written statement. “Make no doubt we have several budgetary challenges, in Medicaid expansion and teacher pensions, to name a few.”

Michael R. Strain, the deputy director of economic policy studies at the conservative American Enterprise Institute, said that $10.10 was simply too high in a state like Kentucky and would discourage hiring there. He added that the minimum wage issue should be addressed at the federal level

The increase, which takes effect in July, will affect almost 800 employees of Kentucky’s executive branch who currently fall below the $10.10 wage threshold, as well as employees of private companies working on government contracts. State employees working in veterans nursing homes, behavioral health facilities, and state parks are likely to see the biggest increase, according to a statement from the governor’s office. Kentucky has 32,827 employees.

Mr. Beshear, whose second term ends in December, framed Monday’s action as a positive step he could take unilaterally before leaving office. As an executive order, though, the fate of the increase will probably be determined by his successor. Jack Conway, the state attorney general and this year’s Democratic nominee for governor, is generally supportive of minimum wage increases, while Matt Bevin, the Republican candidate, is opposed.

Kentucky joins several large municipalities, including Seattle and most recently Los Angeles, in approving minimum wage increases in recent months amid federal inaction on the subject.

[LadyTevar]

Wow.... Once again, a Broken Clock worked.