Designing Oregon’s Regional Minimum Wage
(2015-2016 Project)
OREGON'S LANDMARK REGIONAL WAGE POLICY
Our 2015 focus was wealth inequality in Oregon, and the growing share of low wage workers who could not earn enough to support themselves without a strong public safety net. We provided the data, policy analysis, and community conversation needed to develop policy that responds the the realities of Oregon's economy – including costs of living, median income, and regional labor markets.
DATA-DRIVEN POLICY: MOVING MORE OREGONIANS TO SELF SUFFICIENCY
No one who works full time should live in poverty. Self Sufficiency – the ability to pay for the basics without public or private help – should be our goal for every working Oregonian. But in Oregon today, 28% of Oregon households with two income earners cannot meet this basic goal. This bill responds to the rising costs of living.
INCLUDING ALL: BALANCING RURAL & URBAN CONCERNS
While every hardworking Oregonian should be able to live on what they earn, that means different things in different parts of Oregon. Housing alone is 30% more expensive in the greater Portland area than in eight rural counties. According to a 2014 PSU report, “77% of all Oregonians that are below [Self Sufficiency] are located in urban areas, versus 23% in rural counties.” At the same time Oregon’s rural businesses are recovering from the great recession at a much slower pace than their urban counterparts.
Oregon is in a unique position in the national movement to increase the minimum wage. A single city is not permitted to raise wages in Oregon, as Seattle, San Francisco, Los Angeles and Chicago have done. This has required lawmakers to evaluate the impact and benefits of an increased wage on the entire state – not just one city or urban area. This is good for Oregon. The state’s diverse regional economies require an innovative minimum wage solution to address the complexities of an interdependent but uneven state economy.
INCLUDING ALL: OREGON’S COMMUNITIES OF COLOR
Too often, a compromise solution leaves out Oregon’s most vulnerable communities. According to US Census data, more than half of all Oregonians of color live in the region where the wage will increase most quickly and to the highest level.
THE FIRST STEP: OREGON NEEDS A COMPREHENSIVE SOLUTION
With this policy more Oregon workers will be able to afford the basics. This is a critical piece of the puzzle for addressing poverty and income inequality in Oregon. But it does not fix the fact that day care in Oregon is the most expensive in the nation, or that housing costs will continue to rise. A complete solution – that includes funding for earned income tax credits, smart housing policies, and investment in rural workforce development – is still needed. But this is a necessary first step.
2015 RURAL LISTENING SESSIONS
GATHERING LOCAL PERSPECTIVES ON A REGIONAL WAGE
Northwest Health Foundation and North Star Civic Foundation joined together in 2015 to listen to business and community leaders in six Oregon communities and gather concrete ideas and community-informed solutions around a proposed increase in the minimum wage in 2016 or 2017.
Nearly 1 in 6 Oregonians lives in poverty, and 2 in 5 can’t afford to pay for basics such as housing, transportation and food without public assistance. Both of our foundations support an increase in the minimum wage as one component of a statewide effort to reduce poverty and help all communities flourish. We engaged in this listening process to inform our own positions on current proposals to increase the minimum wage.
North Star Civic Foundation and Northwest Health Foundation found that Oregon must increase the minimum wage as part of a larger effort to address increasing levels of poverty among working Oregonians. We also believe that Oregon’s diverse regional economies require an innovative minimum wage solution. This solution should address the complexities of an interdependent but uneven state economy.
Please read our full report, which includes both economic data concerning cost of living and economic factors for rural areas, as well as a chronicle of perspectives from employers in Benton, Clatsop, Deschutes, Lane, Jackson and Umatilla Counties.