Councilor attacks wage-law study

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By Bob Quick The New Mexican |
December 14, 2005



City Councilor David Pfeffer said Tuesday that a preliminary report on Santa Fe’s minimumwage law is “seriously flawed” because it relies on countywide data to measure impact on the city’s economy.

Pfeffer today will try to convince fellow councilors to delay a scheduled Jan. 1 increase in the municipal minimum wage until summer while the Bureau of Business and Economic Research completes a more detailed analysis.

“They’ve used Santa Fe County data from the New Mexico Department of Labor,” Pfeffer said of the researchers. “I understood they were going to get their own data.”

Lee Reynis, director of the bureau at The University of New Mexico, said countywide data on jobs and social-welfare programs were the only numbers available. “That’s what you can get,” she said. “To the extent I had it, I used it.”

And when it comes to jobs data, Reynis said, “the city is pretty dominant among employers. We’ve established that in two other studies. What happens in the city has a major impact on what the county numbers look like.”

The data is mixed concerning how the wage ordinance has affected Santa Fe’s economy, Reynis said. But she said there’s no evidence the ordinance has caused any job losses or had other harmful effects.

City councilors are scheduled to meet at 3 p.m. today at Sweeney Convention Center to discuss the preliminary findings by researchers commissioned to conduct the study. Pfeffer’s proposal to delay the Jan. 1 increase in the hourly minimum wage to $9.50 from the current $8.50 is on the agenda for a 7 p.m. council session.

The final version of the study is not due until May. However, the initial analysis released Monday said job growth has continued strong since the law took effect in 2004, average wages have increased, and there has been less reliance by county residents on publicassistance programs.

Pfeffer called the preliminary analysis “biased,” saying it contained anti-business comments in several places and is too much in favor of the minimum-wage law.

The councilor, who wants the ordinance amended to require a council vote on any future increases in the local minimum wage, said the report provides encouragement to the Santa Fe Living Wage Network, a nonprofit group that favors the higher wage.

“They can argue that we don’t need council approval for this wage increase or any other increase,” Pfeffer said.

The report said the only negative impact of the ordinance so far might be on the construction industry, which has lost jobs and experienced a reduction in the amount of gross-receipts taxes paid.

Bill Chapman of Chapman Homes said the slowdown in the construction industry might be due in part to a decline in the building of mediumpriced homes, which are built faster than more expensive custom homes and require more workers.

“There are almost no medium-end lots left that a small builder can buy,” he said. “That would lead to lower hires.”

Surveys of business owners in Santa Fe showed that many employers have cut overtime while others reduced parttime workers.

In addition, many business raised prices, and a small number indicated they have moved or would be moving out of the city and into the county, where the minimum wage would not apply.

The survey also indicated that business owners were particularly worried about the $9.50 wage, which might result in some of them closing their doors.

Pfeffer also said he is concerned about the nonprofits that provide vocational services to people with disabilities , including Challenge New Mexico, which is cutting some programs, and Heritage Healthcare, which is threatening to pull of Santa Fe because it can’t afford to pay workers the $9.50 wage.

The study doesn’t put enough emphasis on those kind of impacts of the wage, Pfeffer said. “If I were a professor in economics at a university where this study was prepared,” he said, “I would give it a C minus.”

Reynis said she “tried hard not to be biased in the way I presented the data. Hopefully, I succeeded. Whatever we say is going to offend some people.”

Regarding the jobs data and other information in the preliminary report, she said: “That evidence is reasonably straightforward, but there are a lot of areas that require further analysis. There are a lot of businesses saying they made some substantial changes in their employee policies and the structure of jobs. It will take awhile to get a handle on that.”

Some businesses involved in the study “have dug in their heels” to resist the ordinance, Reynis said. “Some of them don’t like the law and never will, and they have tried to get around it by keeping their employees in the dark.”

Reynis said she hopes to obtain more precise information about the impact of the ordinance on specific businesses by the time the final study is completed in May 2006.

Businesses and business organizations have filed court challenges against the ordinance, which calls for the minimum to rise to $10.50 an hour by 2008. But the state Court of Appeals has ruled the city didn’t exceed its authority in adopting the law.

The state Legislature next month is expected to consider raising the statewide minimum wage to $7.50 an hour from $5.15. Business groups are expected to lobby for a provision that would preempt local governments from imposing higher minimum-wage requirements.

Contact Bob Quick at 986-3011 or bobquick@sfnewmexican.com.

What: Santa Fe City Council discussion of minimum-wage law

When: Today, 3 p.m. study session; 7 p.m. public hearing

Where: Sweeney Convention Center

Comments

 

By Judy Yelsky (Submitted: 12/14/2005 3:11 pm)

the only JC ladies man I know is John Coventry, may he rest in peace.

 

By Donado "Cove" Coviello (Submitted: 12/14/2005 2:53 pm)

J.C., for someone who admits to doing "as little as possible" you got a lot to say.

Pfeffer is wise enough to realize the responsible part of "Responsible Anarchist."

Neither Governent or I owe you anything J.C.

Pfeffer knows more about the economic of Santa Fe than any quack PhD. living belly up to the public trough in some State institution.

Anyway "J.C. 'The ladies man' Warfield I'll see you in about ten minutes at Sweeney for "Study" time with the commie Councilors.

 

By Patricia Lovato (Submitted: 12/14/2005 2:47 pm)

Watch out with that comment Cris! I've mentioned that before, and all your gonna get is crap from all the moms on this forum! But I agree with your comment!

 

By Gilbert Whilikers (Submitted: 12/14/2005 2:26 pm)

Well said Cris lopez.

 

By J.C. Warfield (Submitted: 12/14/2005 1:45 pm)

Coviello writes about Pfeffer, "at least he lives in Santa Fe and works in the private sector." So, by this, it qualifies Pfeffer to give a C minus to those PhDs.

Give it a break. And you deem yourself as a "Responsible Anarchist", huh? Your greed exceeds you!

 

By Cris Lopez (Submitted: 12/14/2005 1:37 pm)

Don't most 18 yr olds still live at home? Minimum wage is not intended for heads of households. We hope that by the time you decide to breed you have trade skills or an education. This is what mature, responsible adults do.

 

By Greg Miller (Submitted: 12/14/2005 1:34 pm)

You don`t have to live in Santa fe. You have a problem with Santa Fe? Adios Amigo!! Go make your money somewhere else.

 

By Alf Abeyta (Submitted: 12/14/2005 12:59 pm)

The average across the country was that $15.78 an hour was needed to rent that apartment.

One third of
America rents. How can any "living wage law" in the City have any effect on big economic?

If both partners are earning minimum wage of $8.50/hr. then they can afford the average apartment.

 

By Donado "Cove" Coviello (Submitted: 12/14/2005 12:42 pm)

To hell all you commies. Pfeffer and I disagree on almost everything except this issue. [] At least he lives in Santa Fe and works in the private sector.

This study is a sham. And anybody who works for government or lives outside the City limits really has nothing to say about this fake report.

In todays print edition of the New Mexican there is a chart of the whole U.S. with a breakdown of the estimated hourly wage needed to rent a two bedroom apartment at 40 hours a week using 30% of your income for rent. The average across the country was that $15.78 an hour was needed to rent that apartment.

One third of America rents. How can any "living wage law" in the City have any effect on big economic?

 

By J.C. Warfield (Submitted: 12/14/2005 12:37 pm)

Pfeffer states, “If I were a professor in economics at a university where this study was prepared, I would give it a C minus.” So, does this mean that he, Pfeffer, has a PhD in Economics? Other then what he has stood for the last four years regarding City politics, I don’t know much about Mr. Pfeffer. However, I don’t think he is qualified to be grading other PhDs in the field of Economics.

From what I do know of Mr. Pfeffer though, I would give a D minus for his work as a City Counselor for Santa Fe- not taking into consideration of his view on the living wage. Otherwise he would get an F! Get elected and then immediately change party affiliation- not very professional. And he want to go to Washington D.C.?

 

By Gloria Mendoza (Submitted: 12/14/2005 11:08 am)

David Pfeffer knows reality? PLLLLLEASE! Pfeffer is probably the most disconnected councilor ever to serve in Santa Fe. Boy, did he ever do us a favor by deciding to leave. Of course, I think he knew he didn't stand a chance to be elected again. Good-bye David Pfeffer! Yippee!

 

By ms roybal (Submitted: 12/14/2005 10:53 am)

the only way this would be fair is if the State Gov, Non-Profits, and businesses with 20 or less employees had to participate. Until these establishments are obligated to pay, no one should. After all, we are talking fariness.

 

By michael segura (Submitted: 12/14/2005 10:45 am)

I agree that we need higher wages but we must be very careful not to push to hard otherwise it will effect all of us with higher prices therefore nullifying the increases in pay. It is a good idea to have all the facts in place before going further. I know David and he is a wise man who knows that reality is better than pie in the sky thinking.

 

By Anthony Aragon (Submitted: 12/14/2005 10:03 am)

It seems that ever since he became a Republican, he is trying to prove that he is a diehard republican. Well, I'm a republican and I find myself disagreeing with most of his positions, including this one.

 

By g apodaca (Submitted: 12/14/2005 9:39 am)

Mr. Miller this raise is only for unskilled labor, as your right handed buddis say. But all is not lost you still have barber college.

 

By Greg Miller (Submitted: 12/14/2005 9:17 am)

I want a raise too. I also need money. Come on! step up now. Who wants to kick into giving me a raise. Come on! don`t be shy or cheap. I want Mo Munny too!!! Have you no compassion!!!!

 

By Stephen Cooney (Submitted: 12/14/2005 8:43 am)

Well Hunter, the Santa Fe chapter of the Reality Fan Club has been rather short-handed for some time now...

 

By Hunter Christie (Submitted: 12/14/2005 8:16 am)

Most businesses were above the $8.50 level (mine included) so there wasn't much impact. Moving to the $9.50 level is a different story. I have some folks that are abouve that, but some that aren't. When it gets to the $10.50 level, there is going to be a much biger impact. . . primarily in higher prices. Pfeffer isn't a piece of #$%$, just a breath of reality.

 

By John Sanchez (Submitted: 12/14/2005 8:09 am)

Come on David Pfeffer, stop trying to make a name for yourself at our expense!

 

By g apodaca (Submitted: 12/14/2005 7:35 am)

If Pfeffer and his backers would spend the money they have used to attack this great legislation on improving thier businesses, the wage increase would be a non issue. From what Ive gathered most businesses have been above the 9.50 for some time.

On a personal level I think Mr.Pfeffer is a piece of #$%$.

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