Hillsborough County commissioners will vote Wednesday on whether to pay county employees and contractors a so-called "living wage," an amount higher than the federal hourly minimum wage of $5.15. The idea is a good one, but the county should couple a symbolic raise with a larger strategy for creating new opportunities for low-income workers. The goal should be to move people out of poverty, not merely to throw more money at them.
More than 100 local governments in 31 states have adopted some form of a living wage. These counties and cities recognize that the $5.15 federal hourly minimum is not enough for working families to afford decent housing, health care and other basics. The movement is as practical as it humanitarian. Local governments deal firsthand with the fallout from low wages, whether through crime rates, unreimbursable hospital care or expensive and chronically overloaded affordable-housing programs.
Reports prepared for the commission give the board several options, the most reasonable one being to establish the wage at $7.33 per hour, which amounts to 100 percent of the 2003 federal poverty guideline for a family of three. The raise would be expected to benefit up to 746 workers, and cost between $800,000 and $900,000 annually. Consultants and a county task force also considered a higher wage, and adding $2 to the hourly rate to induce employers to provide health coverage. But the focus should be on helping those at the very bottom. Rather than subsidize private medical insurance, Hillsborough might find it cheaper to expand eligibility for low-income workers through its indigent health care plan.
The county task force recommended against adopting a living wage, echoing the view of business representatives on the panel that the costs would outweigh the benefits. But the biggest cost of a modest increase is in reimbursing employers for health care. Take that out, and the cost - even if the full amount is passed through to taxpayers - is barely a blip. The wage would apply only to contracts of $50,000 or more, meaning that many small employers might not be affected. The county would not dampen the business climate. There is only one county government in Hillsborough. Billions of dollars in work still needs to be done, and bidders would compete on a level playing field.
The task force is right to urge the board to adopt a broader strategy against poverty. The commission should accept the panel's call for the county to promote federal low-income tax credits and search for ways to give workers new opportunities, by providing more child care, transportation, education and training options to those in or near poverty. A modest increase alone will not raise every boat, but it will show the county is there to help self-starters succeed.
