Tag Archives: Minimum Wage

Montgomery County Council approves minimum wage increase to $15 per hour

by on January 17, 2017 in Press Releases

Approval of Bill 12-16 makes Montgomery one of the

first jurisdictions in the nation with $15 minimum wage

 

ROCKVILLE, Md., January 17, 2017—The Montgomery County Council today approved Bill 12-16 that will gradually increase the County minimum wage to $15 per hour by 2020. Five amendments to the original bill were approved before the Council voted 5-4 to approve the amended bill, making Montgomery one of the first jurisdictions in the nation to approve a $15 per hour minimum wage.

Councilmember Marc Elrich was the lead sponsor of Bill 12-16 to increase the County minimum wage incrementally beyond the $11.50 per hour minimum, effective July 1, 2017, that is provided for under current law. Councilmembers Tom Hucker, George Leventhal, Nancy Navarro and Hans Riemer were co-sponsors. Those five voted to approve the amended bill. Councilmembers Roger Berliner, Nancy Floreen, Sidney Katz and Craig Rice voted against the amended bill.

The bill now goes to County Executive Ike Leggett for his signature.

More information about Bill 12-16 and its amendments can be found at:

http://tinyurl.com/zk7no4n .

Prior to the vote on the amended bill, the Council considered a proposal to conduct a study of the impact of increasing the minimum wage and delay voting on a Bill 12-16 until after the study was completed. The proposal to conduct the study was defeated by a 5-4 vote with Councilmembers Elrich, Hucker, Leventhal, Navarro and Riemer voting against conducting the study. Councilmembers Berliner, Floreen, Katz and Rice supported conducting a study.

As enacted, Bill 12-16 will:

  • Extend the incremental increases set in County law to go up to $15 per hour effective July 1, 2020 for employers with 26 or more employees. Under the bill’s transition provisions, the County minimum wage for these employers would increase to $12.50 in 2018, $13.75 in 2019 and $15.00 in 2020.
  • Require, beginning in 20212023, annual adjustments to the minimum wage by the annual average increase, if any, in the Consumer Price Index for urban wage earners and clerical workers for the previous calendar year.

Among the amendments approved was one proposed by Councilmembers Elrich and Leventhal that changes the minimum wage schedule for businesses employers with 25 or fewer employees so that they reach $15 per hour two years later than larger employers. The phase in schedule for those the smaller businesses employers will be $12 per hour effective July 1, 2018; $12.75 per hour on July 1, 2019; $13.50 per hour on July 1, 2020; $14.25 per hour on July 1, 2021; and $15 per hour on July 1, 2022.

Another amendment proposed by Councilmembers Elrich and Leventhal and approved would give the County Executive the ability to stop pause implementation of a scheduled increase if economic conditions worsen. The conditions that could trigger a pause are: if total private employment for Montgomery County decreases decreased by 1.5 percent over the period from April 1 to June 30 of the previous year; total private employment for Montgomery County decreased by 2.0 percent over the period from Jan. 1 to June 30 of the previous year; the Gross Domestic Product of the United States experiences negative growth for the preceding two quarters: or the National Bureau of Economic Research determines that the United States economy is in recession.

An amendment proposed by Councilmember Riemer and approved will require the County’s Office of Legislative Oversight to monitor the impact of increases in the County minimum wage and provide annual reports to the Council on the impacts.

“I can’t look at this issue any other way than from the bottom up,” said Councilmember Elrich. “With this increase, we make it clear that we believe that an honest day’s work should result in an honest day’s pay and not leave a working person mired in poverty. Helping people lift themselves out of poverty benefits all of us.

“Raising the minimum wage means that the tens of thousands of families that will be affected. They will now be more likely to meet their basic needs, and enjoy greater stability. And local businesses will benefit when more of our residents have more money to spend in the local economy. I understand the concerns of some business owners, and we have extended the phase in period for small businesses until 2022, and we have provided provisions for a pause in the increases when economic conditions warrant it. But I do not think that those concerns should trump what is a fundamental social justice issue: people who work should be able to make a living, put a roof over their heads and feed and clothes their families.

“When FDR put forward the original minimum wage, it was explicitly to insure a wage that meets basic needs. Sadly, that link between the minimum wage and meeting basic needs has been shattered and it is time to recouple wages to the original purpose of the minimum wage.  I thank my colleagues and all the many people who worked for and supported this bill.”

Councilmember Leventhal said: “I am proud to vote for Bill 12-16 this morning. Today’s vote sends the message that I stand with hard working families struggling to get by on poverty wages.”

Councilmember Navarro said: “I was proud to co-sponsor and cast my vote to increase the minimum wage to $15 an hour. As we celebrated the life of Dr. Martin Luther King, Jr., yesterday, I was reminded of his quote: ‘The arc of the moral universe is long, but it bends toward justice.’ While increasing the minimum wage will not solve the vexing issue of poverty, it is an important step forward in alleviating income inequality of our County.”

Council Vice President Riemer said: “I was very proud to cosponsor and cast my vote for a $15 minimum wage in Montgomery County. This is one of the most expensive places to live in the U.S. A higher minimum wage will help the poorest among us make ends meet, and when workers have more money in their pockets the local economy has stronger consumers—which is good for everyone. I am also grateful to my colleagues for supporting my amendment calling for the Council to receive an annual report on the local economy so that we can carefully track the impact of our minimum wage. No policy is without tradeoffs, but there are also great costs if we fail to act, including children living in poverty, economic insecurity and growing inequality. These are the problems that I am most compelled to address.”

Councilmember Floreen said: “I certainly support increasing the minimum wage to $15 nationally or even regionally. However, for Montgomery County to raise our minimum wage when surrounding jurisdictions do not raise theirs risks putting us at a competitive disadvantage for job creation. What people want most is a job, and we need to make sure we have an environment that supports job growth.”

Councilmember Katz said: “My vote against this bill was a reflection of my concern that we do not have enough information to pass the best legislation possible. I sincerely believe that the best path forward for this complex discussion would have been to get more information based on Montgomery County’s unique situation. I am very concerned that we do not know the full scope of the impact on the County budget and I am worried that there will be some businesses that will close and others will be forced to decrease the hours of some employees. I think the best way to have avoided this would have been to base our decision on more information—this would not have delayed implementation at all.”

In 2013, the Council enacted Bill 27-13 that established a County minimum wage for County employees and private sector employees working in the County, unless the state or federal minimum wage is higher. Bill 24-15 modified the method for calculating the “tip credit” allowed to employers of tipped employees.

The County minimum wage established under Bill 27-13 is being phased in over several years. The rate was set at $8.40 per hour effective Oct. 1, 2014, and increased to $9.55 per hour on Oct.1, 2015. It increased to $10.75 on July 1, 2016, and will go to $11.50 per hour on July 1, 2017.

The County minimum wage does not apply to a worker who is exempt from the state or federal minimum wage, is under the age of 19 years and is employed no more than 20 hours per week or subject to an “opportunity wage” under the state or federal law. Employers of tipped employees may include in the computation of their wage amount a “tip credit” not exceeding the County minimum wage less $4.00 per hour.

The District of Columbia enacted a law in June 2016 increasing the minimum wage to $15 by 2020. California and New York have enacted statewide laws that will increase the minimum wage for at least some workers to $15 per hour over a period of years. In the November 2016 election, voters in Maine, Arizona and Colorado all voted to increase the minimum wage to $12 an hour by 2020, and Washington State voters approved a raise to $13.50 an hour by that year. In Arizona, voters in the City of Flagstaff approved an additional minimum wage initiative to increase the minimum wage in Flagstaff to $15 an hour in 2021.

# # # #

 

Bill to Raise Montgomery County Minimum Wage to $15 by 2020

by on April 13, 2016 in Media

A Productive Year as Council President

by on December 3, 2013 in Press Releases

This morning marked the end of my one-year term as Council President. This year, the Council accomplished a great deal. We maintained our fiscal responsibility by passing a balanced budget, invested in our future by fully funding our IMG_3108schools, and helped our most vulnerable residents by raising the minimum wage. We strengthened support services for our seniors, passed legislation protecting our environment, and made government more accessible for our residents. We also strengthened our relationship with our delegation in Annapolis by advocating for the successful transportation funding bill that will provide the resources for Montgomery County’s transit priorities.

Thank you to my colleagues for giving me this opportunity to serve. I look forward to working with newly elected Council President Craig Rice and Vice President George Leventhal. As I look back at the past year, I can’t help but marvel at all the things the Council has accomplished together.

 

Accomplishments of the Montgomery County Council
December 2012—December 2013

Maintaining Fiscal Responsibility: As the economy continued to recover from the Great Recession, the Council made smart fiscal decisions to keep our economy moving in the right direction. The three major credit rating agencies acknowledged these decisions by reaffirming Montgomery County’s AAA bond rating. In the Fiscal Year 2014 budget, the Council kept its promise to lower the fuel / energy tax by an additional 10 percent, bringing the two-year total reduction to 20 percent. The Council also provided raises for the County’s dedicated workforce for the first

Investing in our Future: The Council fully funded the Board of Education’s FY14 budget request for Montgomery County Public Schools (MCPS). It approved an additional $280 million in funds outside the MCPS budget to serve students and their families. These additional services include debt service on school construction bonds, pre-funded retiree health benefits, and support services, such as school health nurses, crossing guards, technology modernization, and after school programming. The Council also released a report by the Office of Legislative Oversight on the academic achievement gap, strengthened the Kennedy Cluster Project and expanded funding for Excel Beyond the Bell. In addition, the Council supported increased funding for Linkages to Learning, school-based Wellness Centers, and the popular Teen Escape Club program.time in several years.

Strengthening the Social Safety Net: Helping our most vulnerable residents was a key priority for the Council this year. The Council increased the County Executive’s recommendation for the Department of Health and Human Services by $5 million, including a 3 percent cost-of-living adjustment for nonprofit service providers. It passed resolutions calling for the state to increase the minimum wage and reaffirming the Council’s commitment to anti-poverty and safety net programs.

The Council increased funding for the Student/Teen Employment Program, increased staffing for the anti-gang Street Outreach Network program, and added additional resources for the Department of Recreation to support at-risk youth. It provided additional funding to reduce the waiting list for the Montgomery Coalition for Adult English Literacy (MCAEL), increased resources for the Working Parents Assistance Child Care Subsidies Program, and expanded food recovery efforts. In the FY14 budget, the Council funded the Working Families Income Supplement at the highest level since the Great Recession. Most significantly, the Council made history by becoming the first county in the nation to raise its minimum wage. By 2017, the minimum wage in Montgomery County will be $11.50, among the highest in the nation.

Supporting our Seniors: The Council significantly increased funding for a variety of senior programs in the FY14 budget. For the first time, the Council established a Senior Mobility Manager position in County Government and provided additional funds to the Public Information Office to promote senior transportation options. The Council also increased funding for mental health services for seniors and continued its support for senior recreation activities.

Protecting our Environment: The Council passed important legislation to protect our environment this year. It passed legislation preserving trees in the County right-of-way and requiring the replacement of trees destroyed through development. The Council also updated the Water Quality Protection Fee to now include commercial properties, but reduce the rate for most residential properties. The Council also approved funding to bring bike-sharing to Montgomery County.

Promoting Open Government and Access for All: Last year, the Council launched an initiative to better communicate with our constituents. Since then, it has procured a new constituent management database, hired bilingual public information officers, and improved its technology infrastructure. The Council launched the first Council E-Newsletter and will modernize its website in the coming year. The Office of Legislative Oversight developed the first “Interactive Fiscal Model” so residents can review and weigh the budget decisions the Council makes each year. For the first time, residents were able to testify at public hearings in a language other than English, with real-time closed caption translation. The Council also held an unprecedented four nights of public hearings on the Zoning Code Rewrite, where it heard from hundreds of residents about a range of issues. Finally, the Council passed the Right to Vote resolution, creating a Right to Vote Task Force—a citizen group that will recommend ways to increase participation and promote greater access to the democratic process for our residents.

Focusing on Economic Development: The Council had one of the most ambitious master and sector plan schedules in recent memory. One of the most significant accomplishments of the term was passing the Countywide Transit Corridors Functional Master Plan, calling for Bus Rapid Transit (BRT) with dedicated lanes along many of Montgomery County’s most congested roadways. This plan sets the stage for a high-quality transit network that will accommodate the expected regional growth over the next few decades. The Council also approved several plans in anticipation of the Purple Line, such as the Chevy Chase Lake Sector Plan and the Long Branch Sector Plan. The Glenmont Sector Plan and Burtonsville Crossroads Neighborhood Plan, which were also approved this year, are two examples of the Council working with our state delegation to designate “Enterprise Zones” in areas to complement land-use decisions.

Working with Annapolis: The Council’s partnership with the Montgomery County Delegation in Annapolis was strengthened this year. The Council was outspoken in its advocacy for the ultimately successful Transportation Infrastructure Investment Act, which will raise more than $650 million for Montgomery County to build the Purple Line, Corridor Cities Transitway and other County transportation priorities. This landmark transportation bill is expected to raise more than $4.4 billion statewide over the next six years. The Council also passed a resolution calling for stronger gun control in the wake of the Sandy Hook school shooting, and the Governor and General Assembly responded by passing the most sweeping gun control legislation in the nation.

Remarks by Council President Navarro
December 3, 2013 

“The theme of my speech when I was elected president last year was ‘One Montgomery.’ I talked about the need for us to confront the social and economic challenges our County was facing head on. I said that now—more than ever before—we must be in this together. That we all share the same need for a government that encourages economic growth, protects our families, educates our children and provides a safety net for those who fall on hard times. . . .

“‘One Montgomery’ means investing in our economic infrastructure so we can continue to strengthen our social infrastructure. It means providing equal opportunity to all of our 1 million plus residents—throughout our 500 square miles . . .

“One of the initiatives I felt most passionately about this year is increasing access to the government for our constituents. Too many of our residents either don’t know how to access government or find it difficult to navigate the system. Last year, we set aside funds for the first time with the goal of increasing communications with our residents. This year, we continued that effort by establishing a new constituent management system, hired full-time bilingual public information support and significantly upgraded our technology infrastructure. We also, for the first time, allowed non-English speakers to testify at public hearings with real-time closed-caption translation. Finally, we held an unprecedented four nights of public hearings, where we heard from hundreds of residents, about the ongoing Zoning Code Rewrite. . . .

“One of my top goals this year was to strengthen our relationship with our delegation in Annapolis. It is powerful when the Montgomery County Government and our State Delegation speak with one voice. This was evident in our advocacy for the successful passage of a transportation financing bill that will provide more than $650 million to Montgomery County to build the Purple Line, the Corridor Cities Transitway and other top transportation priorities. . . .

“The question we ask ourselves each year is this: are we better off today than we were one year ago? Did we accomplish what we sought to? Did we serve the interests of our constituents? Did we make progress for our community? My view is that we will look back on this year as one of transformation. This year, we served our neediest residents, we set the stage to fundamentally reshape our transit infrastructure and we made the investments in our future that will pay dividends for years to come. Montgomery County is stronger today than it was a year ago and I have every bit of confidence that we will continue to make progress and move forward as One Montgomery.”