Legislature(2001 - 2002)
2001-01-19 House Journal
Full Journal pdf2001-01-19 House Journal Page 0127 HB 75 HOUSE BILL NO. 75 by the House Rules Committee by request of the Governor, entitled: "An Act relating to increasing the minimum hourly wage under the Alaska Wage and Hour Act; and providing for an effective date." was read the first time and referred to the Labor & Commerce and Finance Committees. The following fiscal note(s) apply: 1. Zero, Dept. of Administration/All Depts. 2. Fiscal, Health, Education & Social Services The Governor's transmittal letter dated January 17, 2001, appears below: "Dear Speaker Porter: At $5.65 an hour, Alaska's minimum wage is the lowest on the West Coast, some eighty-five cents under the next lowest minimum wage. A single parent working year-round at minimum wage earns only two- thirds of the poverty level for a family of three and cannot hope to rise out of poverty. These are disturbing facts that must change. 2001-01-19 House Journal Page 0128 This bill I transmit today is meant to offer Alaska's low wage workers a better quality of life by increasing the minimum wage to $6.40 on October 1, 2001, followed by a raise to $7.15 a year later. The wage would then adjust annually to match inflation, increasing by pennies per year, but protecting the minimal essential purchasing power of low-wage workers. Alaska's current minimum wage is tied to the federal law. So we are reliant on whether Congress decides a raise is in order, rather than being able to determine the wage needs specifically for Alaskans. This outdated relationship has caused our minimum wage to remain stagnant for as long as nine years, from 1981 to 1990. And it's currently been more than 3 years since the last increase. We know Alaska's economy rarely moves in exact synchronization with the rest of the country. To tie our workers' wages to what the rest of the country is doing is a disservice to Alaskans. That is why it is so important not only to raise Alaska's minimum wage, but to provide for its continued adjustment to our local economy. We have made great progress in the past four years in moving Alaskans from welfare to work. But in FY 2000, 22 percent of public assistance recipients entering the workforce earned less than $6.50 per hour. Increasing the wage of these Alaskans will reduce the temporary cash assistance needed to support their families. Working for a minimum wage in Alaska should not mean a minimum quality of life. In the interest of allowing Alaskans the opportunity to achieve financial independence, I urge your prompt and favorable action on this important measure. Sincerely, /s/ Tony Knowles Governor"