Legislature Should Raise Minimum Wage (Editorial)

Lawmakers and supporters of a proposed amendment to raise the minimum wage in Arkansas have reached an agreement that would put a measure to raise it to $6.25 from the current $5.15 before the General Assembly when a special session is called by Gov. Mike Huckabee.

Actually, it would be best if Congress raised the minimum wage so that it would be uniform throughout the country, but Arkansas probably won’t be harmed by stepping out and raising the bar itself. Other states also are looking at raising their minimum wage rates because of the inaction of Congress.

The Rev. Stephen Copley, director of Give Arkansas a Rai$e Now, said his group will continue to collect signatures to put the amendment on the November general election ballot until legislators pass the bill and it is signed by the governor.

Both gubernatorial candidates, Democrat Mike Beebe and Republican Asa Hutchinson, say they approve of the plan by the legislators. Even the Arkansas State Chamber of Commerce, although it will take no position, will not oppose the measure since it will be a state law rather than a constitutional amendment.

GARN’s proposed constitutional amendment would raise the minimum wage by $1 (rather than the $1.10) an hour, but it also comes with annual automatic increases based on the inflation rate as measured by the Consumer Price Index. It doesn’t take much to realize that could quickly put the state out of sync with surrounding states.

Wage minimums affect hiring decisions, and those that will be most affected are those the proposal is supposed to help — lower-skilled workers who get priced out of the labor market. A study by Cornell University economists showed a 10 percent minimum wage hike reduces employment for those without a high school degree by about 8 percent. And, sadly, high school dropouts are more common than they should be in Arkansas.

GARN, a coalition of more than two dozen faith, community and nonprofit groups, needs 80,570 signatures by July 2 to get its proposed constitutional amendment on the November ballot.

Copley, a United Methodist pastor in North Little Rock, said, “Raising the minimum wage in Arkansas is just the right thing to do, both from a moral perspective and the perspective of economic justice. No Arkansas family should work hard, play by the rules and still live in poverty.”

We agree.

The compromise agreement will only stand up until April 15. If a special session isn’t called by then, the deal must be renegotiated.