Gov. Kathy Hochul and state lawmakers are nearing a deal to increase the state’s hourly minimum wage to $17 and tie future increases to inflation, though progressives say it doesn’t go far enough and are launching a last-ditch effort to push it higher.
Speaking to reporters Tuesday in Albany for the first time in 11 days, Hochul said she’s on board with the broad parameters of the plan, while warning the finer points are still being negotiated. But some Democratic lawmakers are still holding out hope for a larger initial increase, perhaps to as high as $21.25.
The measure, which is expected to be included in a final state budget, goes beyond what Hochul initially proposed, which would have simply tied the wage to inflation without a more immediate increase. It is expected to affect at least 500,000 of workers in New York City alone, and comes as the city remains one of the most expensive places to live in the nation.
“I put out the talking points, I put out what I'm looking for, and then we come to a consensus," Hochul said at the Capitol. "I support raising the minimum wage along the lines that we're talking about.”
Under a plan presented to Democratic state senators Monday, New York would increase the $15 minimum wage in New York City, Long Island and Westchester County by a dollar on Jan. 1, 2024. From there, the wage would jump by 50 cents a year until it hits $17 in 2026.
In other areas of the state, the current $14.20 minimum wage would increase to $15 in 2024 and then 50 cents a year until hitting $17.
From there, future increases would be automatically tied to inflation, though Hochul and legislative leaders are still negotiating potential “off ramps” that could prevent an automatic increase from taking effect in the event of a significant economic downturn.
The emerging minimum-wage plan was first reported by Spectrum News.
Progressive Democrats and advocates, as well as dozens of labor unions, are signaling their displeasure, noting the plan would leave New York City with a lower minimum wage than cities like Seattle, Los Angeles and Denver.
“This puts New York behind Flagstaff, Arizona,” tweeted state Sen. Jessica Ramos, a Queens Democrat pushing for a $21.25 minimum wage. “No disrespect to Flagstaff, Arizona.”
The Raise Up NY Coalition, a group of organizations and lawmakers pushing for a higher wage, also said the tentative compromise is inadequate.
“The state budget is an opportunity to effectively address New York's most critical issues, and $17 just doesn't cut it,” Tal Frieden, the campaign’s coordinator, said in a statement. “We are urging Albany lawmakers to fight for $21.25 in the final budget and give three million workers the raise they deserve — not a weak compromise.”
Hochul’s comments Tuesday came as the budget remains nearly four weeks late, well beyond the April 1 of the state’s fiscal year. The governor and lawmakers have approved five short-term extensions to ensure the state continues paying its bills, with the latest set to expire Friday.
The governor told reporters she’s hopeful a budget deal — which, when finalized, will exceed $225 billion — could be wrapped up “perhaps as early as the end of the week.”
She’s spent weeks negotiating with legislative leaders over a number of policy issues tucked into the budget, including a measure that will make clear when judges have discretion to set bail. But the logjam was broken late last week when Hochul dropped her proposed housing plan from budget talks, despite her previously saying it would be a major priority for her.
Hochul said she intends to continue to discuss housing policy with lawmakers after the budget is completed. The Democrat-led Legislature resisted Hochul’s plan in large part because it would have required cities, towns and villages to meet annual housing-growth targets — with the state stepping in to approve projects if the communities miss the mark.
“I took on a big challenge,” Hochul said. “I knew it. I said it from the outset. This is not going to be easy, but it's important to me. It was important to me as the governor of a state of New York to say, ‘Listen, we have to make changes here.’”
Senate Democrats, meanwhile, discussed the minimum wage plan in a private conference Monday, while Assembly Democrats are expected to do so later Tuesday.
Home care aides, who last year fought to win an industry-specific wage increase that saw their minimum hourly rate rise to $17 last year, are anticipating an additional raise as part of the minimum-wage plan, according to Helen Schaub, policy director for 1199SEIU United Healthcare Workers East.
Schaub said lawmakers have been briefed on a plan that would see the home care aide wage increase to $18.55 beginning Jan. 1, with future increases to $19.10 and $19.65 in the following years. From there, it would be tied to inflation, she said.
Under the plan approved last year, the home care aide wage was scheduled to rise to $18 in October.
“We actually think in aggregate that, what we believe the agreement is, is a good step forward for home care workers,” Schaub said.
Hochul said the overall minimum wage proposal is “very close,” but she declined to say it’s finalized.
“I’m never going to stand here and say it's completely done until we stand here and do the proverbial handshake,” she said.
