EditorFollowing New York Governor Andrew Cuomo’s foray into unilaterally raising the minimum wage on the fast-food industry to $15, the liberal Democrat has gone “all in” to raise New York’s minimum wage across all industries.
Now comes this:
A survey of New York school districts has found that Gov. Andrew Cuomo’s proposal to raise the minimum wage to $15 will increase labor costs for public schools by millions of dollars.
The New York State Association of School Business Officials released the findings on Friday. The group projects that more than 30,000 employees would see their wages go up if the state goes to a $15 minimum, costing districts at least $276 million.
Although it may cost New York taxpayers more money, not to worry. Cuomo’s response to the survey is to gradually phase in the higher wage and offset it business tax subsidies.
That, alone, may not be enough to help small business owners.
Lloyd Monaco at Our Town Car Wash said he knows his price point.
“People will pay $7 for a car wash,” he said, as a steady stream of cars snaked its way through suds and blowers. “If I raise my prices, they won’t be back.”
Even the lone “business” representative on Cuomo’s self-appointed wage board—who helped push through the minimum wage hike on the fast-food industry—had already abandoned New York’s higher wage rates for Kentucky.
While these anecdotal stories are fodder for commentators, they pale in comparison to what will happen to businesses when wage compression kicks in as the minimum wage increases.
Although New Yorkers elected Andrew Cuomo and are now stuck with him, for the rest of the country, Cuomo’s follies with his state’s economy remains fun to watch—from afar.
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