The Prince George’s County Council is considering tying minimum wage to the rate of inflation, leading to automatic increases in the years to come.
The bill was drafted by District 1 Council member Tom Dernoga, and has the backing of a majority of the council already. It passed a committee vote earlier this week even as some warnings and concerns were expressed about the potential impact it could have on an already tight county budget.
“We’ve got tens of thousands of people in the county making substandard wages who are falling further and further behind,” said Dernoga.
The effort mirrors an already existing law in neighboring Montgomery County, and Dernoga admitted he was doing it in part to put pressure on lawmakers in Annapolis to tie minimum wage to inflation statewide.
At the current rate of inflation, Dernoga said it would mean the minimum wage would increase from $15 per hour to $15.45 per hour next year. But some who testified on behalf of business interests said they’re still adjusting to an increase that took effect at the start of this year.
“It went from $13.25 to $15 per hour, which is a 13.2% increase, well above inflation,” said Brendan Mahoney, who is with the Restaurant Association of Maryland.
“This would be about a 16% increase that businesses have needed to shoulder in the past year and a half,” Mahoney added, arguing for the council to change the date it would take effect from July 1 to Jan. 1.
Amy Rohrer, with the Maryland Hotel Lodging Association, said it would also harm tourism in the county.
“If we raise rates to accommodate the increased expense, we risk losing business in a highly competitive industry,” she said. “Prince George’s County as a destination is competing with surrounding counties in Maryland and surrounding states that have a lower minimum wage. Our guests are extremely sensitive to price and rates can only go so high before guests will choose to go elsewhere.”
Progressive advocates lobbied outside the county council building before the committee hearing Monday, and some also testified in favor of the bill.
“There will be $20 million more in wages for workers that will be taxed, the taxes will be paid into here, so that money will offset some of the costs that will come up with this bill,” said Rion Dennis with Progressive Maryland.
While the bill passed a committee vote unanimously, some on the council did express hesitation and concern about what it might do to county finances.
An analyst estimated an impact of more than $1 million on a county budget that sees a majority of spending go toward education and public safety, two areas that expect significant increases in the years ahead. And it was noted that the last time the minimum wage was increased by the county, there were some surprise impacts members of the council weren’t ready for.
“From my heart, intentionality, I want to support but at the same token I think we need some more time to dot some I’s and cross some T’s,” said Council Vice Chair Sydney Harrison, who still voted to pass the bill out of committee.
“We don’t know right now how difficult it would be,” said Council Chair Jolene Ivey. “Every little bit extra, I worry about.”
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