Price tag for public workers exceeds $65 million
“Unfortunately, the findings are of little surprise to restaurant operators and other business owners who are already warning city leaders and residents what a hike of this magnitude would mean for their ability to keep people on the payroll and doors open,” CRA President + CEO Jot Condie said. “The results would be devastating.”
If San Diego increases its minimum wage to $13.09, Macpherson estimates approximately 5,500 jobs would be lost — with roughly half of those jobs being held by women. The cost to taxpayers would also be significant: There are approximately 13,000 state and local employees whose wages would be affected by the $13.09 increase in San Diego, for a combined cost to taxpayers of $65 million annually (assuming that the wage applies to those public employees.)
To reach his findings, Dr. Macpherson used two years of data from the Census Bureau's Current Population Survey to identify the workers in California and San Diego who would be affected by the wage increases. He closely follows the methodology outlined by the Congressional Budget Office earlier this year to determine the ramifications on employment. The same data set is then used to determine the number of state and local employees who would be affected by the wage hike.
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About the California Restaurant Association: The California Restaurant Association, with more than 22,000 member restaurants, is the definitive voice of the California restaurant and hospitality industry and has served to protect and promote its success since 1906. The restaurant industry is one of the largest private employers in California, representing more than 1.4 million jobs. Restaurants produce more than $58 billion in sales annually and generate more than $4.5 billion in sales tax for the state.