Minimum wage increase bumps up city budget

by Richard Byrd
| December 1, 2016 2:00 AM

MOSES LAKE — Election night brought about several different changes nationwide. From the election of a new president, to new representatives and senators and ballot measures, the voters had their say. Amidst ongoing budget talks and discussions by Moses Lake officials, one of the measures approved by Washington voters changed the city’s budget overnight by around $50,000.

Initiative 1433, which concerns a minimum wage increase, received the go-ahead from Washington voters in a decisive fashion on Nov. 8, as 1,848,583 Washingtonians voted in favor of the measure, a 57.42 percent total, and 1,370,907 people voted against it, a 42.58 percent total. Voters in Grant County, and all of eastern Washington for that matter, were not so accommodating. A total of 17,251 voters shot down the measure in Grant County, a 62.04 percent total. The state as a whole was split down the middle on the issue, with zero eastern Washington counties voting in favor.

The measure lays out a tiered approach to increasing minimum wage. Initiative 1433 increases the state hourly wage for workers 18 and older to $11 in 2017, $11.50 in 2018, $12 in 2019, and $13.50 in 2020. Raise Up Washington reports that by increasing the minimum wage for more than 730,000 Washingtonians, $2.5 billion will be added into local economies. On the local front however, Initiative 1433 has caused Moses Lake to make adjustments to its 2017 budget.

“Just in the first year implementation with running the pool (Surf ‘n Slide Water Park) and other part-time operations we run through Parks and Recreation, that (Initiative 1433) increased our budget overnight by over $50,000 for next year,” stated City Manager John Williams at a recent council meeting. “And there is a phasing of that so it will continue to affect our budget until 2020.”

In addition to the minimum wage increase, under 1433 employers are required to provide paid sick leave starting Jan. 1, 2018. Employees will be able to obtain one-hour of paid sick leave for every 40 hours worked. Employees will be able use paid sick leave for mental or physical illnesses, injury, or other health conditions, and to accommodate their need for a medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition. The paid sick leave also covers instances when employees are providing care for family members. The paid sick leave does not have an impact on Moses Lake however, Williams said, as the city already offers its employees paid sick leave.

On Sept. 30, 2020, and each following Sept. 30, the Department of Labor and Industries will be calculating an adjusted minimum wage rate to “maintain employee purchasing power,” by increasing the minimum wage rate via the rate of inflation. The adjusted minimum wage will be calculated using the consumer price index, according to the text of Initiative 1433.

“We have made some significant concessions and withdrawals from the (2017) budget and are still trying to maintain both those priorities that the council has said, as well as core services that we need to provide for our citizens,” Williams said.

Richard Byrd can be reached via email at city@columbiabasinherald.com.