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After L.A. Council and L.A. Supes Adopt Escalating Annual Minimum Wage (Applauded By Organized Labor), Four LB Council Incumbents -- Lowenthal, Gonzalez, Andrews, Richardson -- Seek LAEDC Report On "Feasibility" Of Potential Benefit/Risks Of A LB Min Wage -- With Possible "Incentives" Or "Fee Reductions" For Non-Profits And Businesses


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(Aug. 3, 2015) -- Four Council incumbents -- three elected in 2014 with the support of organized labor (Lowenthal, Gonzalez, Richardson) and a fourth (Andrews) who had no opposition in 2012 and is attempting a third-term write-in under LB's term-limit bypass procedure -- have agendized an item for the Aug. 11 City Council meeting that would [agendizing memo text] "direct the City Manager to request a report from the Los Angeles County Economic Development Corporation (LAEDC) regarding 1) the feasibility of and potential benefits and risks of implementing a citywide minimum wage in Long Beach; and 2) proposals for incentives, tax breaks, fee reductions and/or process improvements to assist businesses and non-profit organizations in complying with a higher minimum wage; and to work with the City's Economic Development Commission to take public input and review the study’s findings and make recommendations to the City Council."

To view the full agendizing memo, click here.

The agendizers' memo says the LAEDC report "should include data and survey work about the minimum wage and possible incentives for businesses. If a minimum wage increase is to be considered, incentives for businesses and or non-profits in the city should also be considered and discussed."

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Unmentioned in the Councilmembers' press release announcing their Council item: they propose spending up to $65,000 for the LAEDC study using one-time funds "from a source to be identified by the City Manager."

The LAEDC did a similar report for the LA County Bd of Supervisors when it was considering an annually escalating minimum wage. The report's executive summary displeased Supervisor Shiela Kuehl (who supported increasing the minimum wage in unincorporated County areas) while Supervisor Don Knabe (who opposed the minimum wage increase said he considered the LAEDA report fair. The LAEDC study concluded that annually increasing the minimum wage isn't likely to reduce County poverty; many prices will increase along with the minimum wage (including items commonly used by lower-income households); wages will rise for those whose jobs remain but opportunities others without those skills will be reduced...and it forecasts that 19% of businesses are likely to cut back on employment by reducing hours or jobs or hiring fewer workers. (Supervisor Kuehl noted that it could be said a minimum wage increase wouldn't mean cut backs at 81% of businesses.)

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In June 2015, the L.A. City Council voted 14-1 (Englander dissenting) and the L.A. County Bd of Supes followed by voting 3-2 (Knabe and Antonovich dissenting) a few weels later to adopt an annually esclating minimum wage reaching $15/hour by 2020 or 2021 (depending on business size.)

Shortly after Vice Mayor Lowenthal issued her release, LB Mayor Robert Garcia (who has no vote but has a veto that six Councilmembers can override) issued a statement that he supports a "collaborative and inclusive conversation about raising the minimum wage that includes workers, small businesses, and our non-profits. We need to ensure that we collect data, study national and local workforce trends, and most importantly ensure that the process is open and balanced. While I appreciate the conversation and work that has happened in Los Angeles and other jurisdictions, Long Beach will look towards creating a policy that reflects the needs and interests of our residents and business community." The statement said Mayor Garcia has already begun meeting with business leaders and nonprofits [but didn't name names] and said he "will ensure that there are numerous opportunities for public input over the coming months."

The agendizers press release quotes the four as follows:

  • Vice Mayor Lowenthal: "Considering so many of our neighboring cities and jurisdictions have approved minimum wage increases, it is important for Long Beach to at least look at whether a minimum wage is appropriate here, and what incentives for businesses might be appropriate as well."

  • Councilman Andrews: "It' important that we simply get all the facts and this report will help us do that. We want to support our business community and our workforce, as well as, the families that are in dire need of a living wage."

  • Councilwoman Gonzalez" "I am confident that we can have a constructive and informed conversation about the issue and find the best way to proceed for our City. I am looking forward to the discussion about what is best for our entire economy."

  • Councilman Richardson: "Long Beach families deserve a seat at the table in the national conversation on poverty and wages. This study will give us an opportunity to begin a true discussion on the benefits and impacts that raising the wage would have on Long Beach."

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Minutes after Vice Mayor Lowenthal and the agendizers and Mayor Garcia issued their statements, the politically active L.A. County Federation of Labor issued a statement via its Exec. Dir. Rusty Hicks: "The Raise the Wage coalition supports the decision by Long Beach Mayor Robert Garcia and the Long Beach City Council to initiate the process for a wage increase for Long Beach workers. We look forward to working with the City of Long Beach to replicate the model set in Los Angeles of a wage increase with strong enforcement and paid sick days. Almost 40 percent of Long Beach workers earn less than $15/hour. A higher minimum wage in Long Beach will complement other cities’ efforts and make a huge impact on working families in the Southern California region, by lifting them out of poverty."

Until today, elected officials in L.A. County's second largest city have been mainly mum on a minimum wage...with a citywide election cycle approaching in Council districts 2, 4, 6 and 8 in April 2016 (and June for possible runoffs.) Whether the minimum wage issue becomes a hot button wedge issue or a shrug and a political dud locally remains to be seen.

Vice Mayor/2d dist. Councilmember Lowenthal has indicated she won't seek another term but hasn't said if she'll seek some oher elective office; two candidates (both Dems but one with especially strong labor ties) have surfaced thus far.

Co-agendizer/6th dist. Council incumbent Dee Andrews, who faced no ballot opposition four years ago, is attempting a third term via a write-in campaign under LB's term-limit bypass procedure; no challengers against him have surfaced thus far.

8th dist. Councilman Al Austin, who has strong organizer labor ties, has filed paperwork to seek a second term; no opponents visible thus far.

4th dist. Councilman Daryl Supernaw, elected in April 2015 to fill the final year of former Councilman (now Assemblyman) O'Donnell's term, is expected to seek reelection in April 2016. Supernaw's main ballot opponent in 2015, Herlinda Chico, finished second despite strong labor and incumbent backing; she hasn't announced her intentions but has been visible at public meetings in recent weeks, and testified at Council against seeking a report on the "feasibility" of allowing a federal customs facility (int'l flights) at LB Airport, an action which Councilman Superlaw likewise voted to oppose joined Councilmembers Austin and Uranga.)

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