| 122nd MAINE LEGISLATURE | |||||||||
| LD 721 | LR 0233(01) | ||||||||
| An Act To Make the Minimum Wage a Livable Wage | |||||||||
| Fiscal Note for Original Bill | |||||||||
| Sponsor: Rep. Eder of Portland | |||||||||
| Committee: Labor | |||||||||
| Fiscal Note Required: Yes | |||||||||
| Fiscal Note | |||||||||
| Undetermined current biennium cost increase - General Fund | |||||||||
| Undetermined future biennium cost increase - General Fund | |||||||||
| Fiscal Detail and Notes | |||||||||
| Making the minimum wage a livable wage will have a significant financial impact on the General Fund and the Bureau of General Services within the Department of Administrative and Financial Services. The Department of Administrative and Financial Services estimates that they will require three professional staff positions including one position with international econometric experience to implement this new proposed system. The projected annual costs for these positions including benefits plus the associated general operating expenses is estimated to be approximately $331,000 annually. In addition, the department's electronic bid and response system will require an approximate $100,000 upgrade to accomodate the comparison of minimum wage to average weekly salary. It is expected that this legislation will result in a significant increase in the cost of goods and services purchased statewide. The projected cost could be as high as $500,000 or more annually. | |||||||||
| It is unclear how the provision in the bill that allows only those employers who pay its employees the required minimum hourly wage to receive a taxpayer incentive will be enforced. If the intent is to have a State Agency such as the Department of Economic and Community Development monitor those employers that receive tax incentives to ensure compliance with the compensation requirement, additional General Fund appropriations may be required. | |||||||||