New law would make Arizona cities pay for raising the minimum wage

Corner of Aspen Ave. and San Francisco Street in historic downtown Flagstaff, Arizona. /Photo courtesy of Flagstaff 

By Andrew Oxford | Arizona Republic 

Arizona lawmakers could make cities pay for raising the minimum wage.

A new law that takes effect Aug. 27 requires the state to calculate the cost to Arizona’s government when cities and counties raise the minimum wage above the statewide rate. If the state has to pay more for services in those communities because of a higher minimum wage, legislators could force local governments to cover the additional costs.

Proponents of the measure argue it is only fair after Flagstaff voters elected in 2016 to raise the minimum wage above the state’s rate, in turn requiring government contractors to increase pay for some low-wage workers.

But others view it as an effort by the Republican-controlled Legislature to curtail the power of local governments. Critics argue this provision nestled in House Bill 2756 creates a financial cudgel with which the state can hit cities that raise the minimum wage and discourage other communities from doing the same.

“The message is: Other cities, you do this at your own peril,” says state Rep. Randall Friese, a Democrat from Tucson who opposed the measure when it was up for a vote in the House Appropriations Committee, describing it later as governing with a vindictive tone.

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