Council committee approves moving ahead with minimum wage study

The City Council’s Committee of the Whole has approved issuing a request for proposals (RFP) to study the impacts of increasing the minimum wage in Minneapolis and regionally including Hennepin and Ramsey counties. 

The committee also signed off on spending $150,000 for the study. The full Council will vote on the proposal Sept. 25.

The study’s scope would include evaluating the impact of a $12 minimum wage phased in over five years and a $15 minimum wage phased in over five years. It would analyze the economic impact of a Minneapolis minimum wage increase and the impact on the Twin Cities economy if the wage hike included Hennepin and Ramsey counties. The study is expected to be done by March 31, 2016. 

In a presentation before the committee, David Frank, the city’s director of economic policy and development, noted that although Minneapolis has the single greatest number of jobs in the Twin Cities, overall it represents less than 17 percent of all jobs in the seven-county metro area.

He also noted that Minneapolis has the lowest percentage of workers employed inside its city limits among major cities considering minimum wage ordinances. Of all workers that live in Minneapolis, only 24 percent also work in the city. Of low-wage workers that also reside in Minneapolis, 33 percent work in the city.

Large cities that have recently implemented minimum wage increases include Seattle, Los Angeles, San Francisco, Chicago and New York City.

(Below: The Wage Picture in Minneapolis, analysis by Andrew Dahl.)