Why should we increase the minimum wage in San Francisco?
	It costs 184% more to live in San Francisco than the average city in the United States. The current minimum wage of $6.75/hr. - only $14,040 per year for full time work - simply doesn't cut it. San Francisco workers need a higher minimum wage in order to feed their families, pay for rent, tuition, and health care.

How many people will get a raise?
	Raising the minimum wage by 26% to $8.50 (or $17,680 per year) will affect more than 54,000 low-wage workers in San Francisco-about 12% of the City's private and non-profit sector jobs.

Who are the workers who will be affected by Prop L?
	• More than 65% are San Francisco residents • More than 40% are Asian American • 20% Chinese • 15% Filipino • More than 20% are Latino • 4,750 single parents of more than 7,100 children • Approximately 25% of all homeless people in San Francisco are employed, but do not make enough money to find decent, affordable housing. An increase in the minimum wage would help the working poor and homeless get off the streets into stable housing. • Nearly 17,000 workers under age 25 who are mostly students and youth of color.

Won't this cost too much and lead to increased unemployment?
	Raising San Francisco's minimum wage to $8.50/hr would affect about 15% of the City's private sector and non-profit jobs, yet the cost would be less than 1% of the total wages paid by those employers. And 95% of employers would see less than a 5% increase in operating costs. In fact, the jobs impacted by the ordinance take home only 3% of the total wages paid in San Francisco. Higher wages usually lead to better worker morale and lower turnover, thereby decreasing costs to business. Businesses may find themselves actually saving money through lower training and lost productivity costs simply because their workers are more likely to stay at their jobs and do their jobs well. Businesses have other ways to adjust to increased operating costs, particularly SF businesses who can renegotiate their leases since rents are down from historic highs. This could offset increased workers comp/health insurance costs. While it is true that workers comp and utility costs have gone up we support efforts at state level to reign in these costs. However workers shouldn't have to suffer lower wages because of other costs. Data doesn't show that raising the minimum wage increases unemployment. Even most conservative economists and ardent critics of minimum wages now concede that minimum wages have not adversely affected employment in urban areas. Could open up jobs as workers don't need several part time jobs, which effectively opens another space for another employee.

But we're in a recession and every penny counts?
	Which is all the more reason to raise the wages of our lowest paid workers. The majority of the thousands of additional dollars earned by low-wage workers will be directly spent at local businesses in their communities throughout San Francisco-stimulating the local economy in the process. And businesses with fewer than ten employees will have two years to phase-in the higher minimum wage. Additionally, higher wages mean greater self-sufficiency and less reliance on the City's social services. The working poor depend on public services for medical care, food stamps and other basic needs. An increase in the minimum wage would save San Francisco taxpayers money by decreasing dependence on public services.

How will this impact non-profits?
	Non-profits have a two year phase in period. By 2004, they will be at $7.50, by 2005, $8.50.

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Sources: 2000 US Census 1% Microdata; Reich and Laitinen, 2001; 2001 County Business Patterns, US Census