Feb 10, 2021 4 min read

During a virtual news conference Tuesday, Gov. Tom Wolf reiterated his reasons for including an increased minimum wage in his budget proposal.

Wolf proposed raising the minimum wage from $7.25 an hour to $12 an hour by July 1, with 50-cent increases each year until it reaches $15 by July 2027.

“Too many essential workers are earning poverty wages while putting themselves at risk to keep our society running,” Wolf said during the news conference. “They keep food on shelves, move crucial supplies, take care of our children, and support people with disabilities. And thousands of them earn poverty wages. These hardworking people deserve better. They deserve a living wage.”

When asked what the increase could mean for small business owners who have already struggled through the pandemic, Wolf said an increased minimum wage would “increase productivity” and reduce turnover.

“This isn’t about pitting workers against business owners because businesses also stand to benefit from a higher minimum wage,” Wolf said. “Increasing the minimum wage puts more money into the pockets of workers which gives local businesses, and businesses all across Pennsylvania, more customers.”

Wolf also argued raising the minimum wage could potentially decrease the amount of taxpayer dollars needed to fund government programs like food stamps and Medicaid.

“Raising the minimum wage allows Pennsylvanians to work their way out of poverty,” he said.

The state’s minimum wage is currently as low as allowed by the federal government at $7.25 an hour. It has not been raised federally or statewide since 2009. Wolf said while he’s glad President Joe Biden’s administration plans to address the federal minimum wage, he doesn’t believe Pennsylvanians have time to wait.

“No one who works hard should be living in poverty,” Wolf said Tuesday. “We have a responsibility to Pennsylvania workers, and we must act now to raise the minimum wage and make the tax system more fair.”

Joining Wolf Tuesday were Rep. Patty Kim, D-Harrisburg, and Sen. Christine Tartaglione, the minority chairwoman of the Senate Labor & Industry Committee. Tartaglione, who’s been advocating for a higher minimum wage for years, called Wolf’s proposal “prudent and urgent.”

“Raising minimum wage is more than an economic issue, it is a moral issue,” she said. “Raising the minimum wage improves equity for women and minorities, it reduces the burden of taxpayer-funded social services, and it stimulates the economy through increased consumer spending.”

Kim said the wage increase was especially important for essential workers at grocery stores, gas stations and daycare facilities.

“They came home fearful every day of spreading the virus to their families,” she said. “This is not going to make them rich or solve all their problems, but it will give them a little bit more slack in life.”

Jeff Kotula, president of the Washington County Chamber of Commerce, said in an email he has concerns with Wolf’s plan. He said an increase won’t just effect employees of the big box stores or corporations “who can ‘afford’ to pay additional wages.”

“We need to consider that nearly half of minimum wage earners are employed by small businesses, and any mandatory wage increase could have negative effects, especially in our current economy challenged by COVID,” Kotula said in an emailed statement.

He’s also concerned an increase in minimum wage could prevent local businesses from hiring more employees or expanding their businesses.

“We have to account for the reality that the monetary resources of any business are limited and business owners will make decisions on where to direct those dollars,” Kotula said in the statement. “And while it is true that employees will have more money to spend in the economy, that point has to be balanced with the fact that those dollars came from somewhere and will restrict further growth from the originating business.”

A.J. Williams, president of the Greater Canonsburg Chamber of Commerce, said he suspects many local businesses are already paying employees more than minimum wage. He said many are likely paying between $9 and $10.50 an hour.

“I don’t think it will be as grand a change as people might think at first,” he said.

Williams said while raising the minimum wage can be a “double-edged sword” when it comes to the business community, he believes a raise is “appropriate,” since it’s been more than 10 years since it’s been addressed.

“Since we’ve waited so long to address it, you’re looking at a big increase, and that’s scary to people,” he said. “If you think about $7.25, somebody can’t really survive off that. I know what it takes to run my household. You’re looking at a basic human right to be able to provide a living.”