Seattle Forward

Job Growth and the Minimum Wage

The increase in small business employment is highest in Washington State and San Francisco, two areas with the highest minimum wage in the country, according to Paychex, one of the country’s leading providers of payroll services.

The Paychex/IHS Small Business Jobs Index reports on employment nationwide among companies with fewer than 50 employees. You can read their full report here.

Here are two key highlights from the 12-month trend report through April:

• Washington State has the highest increase among states, up 2.22%, and leads all states in job growth.
• Seattle has the highest increase in the index among cities, up 2.66%, and is second only to San Francisco in job growth. (San Francisco has the highest city minimum wage in the country for major cities.)

The full report is packed with interesting infographics and stats. Check it out.

I co-sponsored legislation from Mayor Murray to raise the minimum wage in Seattle and explained why in a previous blog post. The Council is meeting this morning to discuss and possibly vote on this bill in committee. You can tune in on Seattle Channel 21 or at www.seattle.gov/councillive.

Why I’m Sponsoring the Minimum Wage Legislation

I am cosponsoring Mayor Murray’s minimum wage legislation because it’s time for cities to demonstrate bold and necessary leadership to address the stagnation of wages that has plagued our country for decades.

Why does this matter?

An economy where the wealthiest grow exceedingly richer while the poor and middle class experience a real decline in earning power rips apart our social fabric. The growing income and wealth inequality in our country is a dangerous trend.

As someone who started and grew a business for 20 years, I want to see individuals and businesses achieve success, provide meaningful work to their employees and produce goods and services that benefit their communities. I cringe at some of the rhetoric that demeans and disparages those who have achieved such success. But I also believe everyone should have a shot at that success and, today, for many reasons, a lot of people are being left out.

Studying Up on the Minimum Wage

The Council will soon receive a recommendation from Mayor Murray to raise the minimum wage in Seattle. There is a growing consensus in our city and in civic discourse across the country that income and wealth inequality is one of the most pressing issues facing American society. (For quick visualizations of the issue, go to The New Yorker, The Economist, or this fascinating Youtube video.) Inequality and the resulting crisis of affordability are felt particularly strongly in urban areas.

A higher minimum wage is one tool that may help those at the bottom of the income scale and — in the absence of any action at the federal level — cities, counties and states across the country are considering raising their own minimum wage.

If you have been following the coverage about this, you may know that most of the debate has been about the details: What is the number? Is it phased-in over a certain period of time? Do we count just a basic wage or other forms of compensation too? How would the City enforce this?

The Council has been studying up on the issue and hearing from many different stakeholders in the community. If you have ten minutes, I encourage you to read this excellent review of current minimum wage laws and the policy questions facing the City in this debate prepared by Council staff.

To stay engaged with the Council as we move forward, you can sign up to receive emailed notifications of upcoming meetings of the Council’s Select Committee on Minimum Wage and Income Inequality.

West Seattle Alley Vacation Decision

The City Council has heard from many residents, businesses, labor groups and advocates in favor and opposed to a proposed development at 4755 Fauntleroy Way SW in West Seattle. At the intersection of SW Alaska Street and Fauntleroy Way SW, this corner is considered by many to be the gateway to West Seattle as drivers arriving into the area from the West Seattle Bridge will see the building on this block directly in front of them.

The Council’s Transportation Committee voted 5-3 this morning to grant conceptual approval to the vacation of a city-owned alley as long as specific conditions are met. The full Council will vote on Monday, April 21. I voted in support of approving the alley vacation and would like to explain why.

Income Inequality Symposium

This Thursday there will be a 1-day conference about income inequality in Seattle at Seattle University. The all-day event is free, but registration is required. More information and a list of speakers are available here.

From the Mayor's press release:

The Symposium is a critical component of the Mayor’s efforts to address a cornerstone priority of his opportunity agenda: a meaningful increase in the compensation for Seattle workers.  There are three primary goals for the Symposium:

• Help inform ourselves of the rising income gap in our community and the complexities in addressing this issue,
• Establish Seattle as a national leader in developing strategies to address income inequality, and
• Serve as a model to catalyze a broader national movement to address the rising wealth gap in our country.

Returning to Kindergarten

Recently I returned to Stevens Elementary - where I attended kindergarten - to talk with the Seattle Channel's Josephine Cheng about preschool, the search for a new police chief, the minimum wage and more. Here's the latest installment of "Council Conversations": 

Local Tax Burden Comparisons from DC Report

Every year the District of Columbia government issues a report comparing tax rates and tax burdens in the most populous city of every state. These reports provide a good opportunity to see how Seattle ranks with other major cities across the country. As we continue to look at issues related to affordability in Seattle, we must keep in mind an individual’s or a family’s tax burden—even if the tax structure is set at the state level.

The latest report looks at 2012 data. Overall, the report placed Seattle 45^th out of the 51 cities reviewed (meaning the tax burden here is relatively low compared to the other cities).

A look at the detailed analysis reconfirms what we already know: Washington State’s regressive tax structure hurts those who have the least. Relative to income, the tax burden is nearly double for a family of three making $25,000 (13%) compared to a similar family making $150,000 (6.6%).

Income Inequality in American Cities

The Brookings Institution's Metropolitan Policy Program—the same team that has raised awareness about the suburbanization of poverty—released another interesting research paper today exploring income inequality in the top 50 most populous U.S. cities. The paper examines the ratio between the income level of the 20^th percentile (i.e. those who earn more than 20% of households) and the 95^th percentile (those who earn more than 95% of households).

The paper’s author, Alan Berube, has traveled to this area multiple times and knows it well. Here is what he has to say about Seattle:

“Seattle, where the inequality debate has fueled calls for a $15/hour minimum wage, turns out to have a relatively low inequality ratio (31st out of 50 cities). This fact is largely attributable to the relatively high incomes earned by its 20th-percentile households—$26,000, third-highest among the 50 cities. Like San Francisco, Seattle may have less poverty not only because people there earn more, but also because the region’s poor increasingly live in suburbia. For its part, the Emerald City experienced no measurable increase in inequality from 2007 to 2012, indicating that either its low-income households held their own during the recession, or that there were just fewer places for them to live in the city by 2012. If the latter is true, it seems as though residents of south King County may need a minimum wage boost at least as much as their central-city neighbors.”

Workforce Housing Forum

This afternoon I will join several of my Council colleagues at a Workforce Housing Forum here in City Hall. Affordable housing will continue to be one of the City's major challenges in the coming years and this forum gives us an opportunity to learn how other cities are aggressively tackling this challenge.

Based on the RSVP count, we are expecting quite a crowd. If you aren't able to make it downtown, the Seattle Channel will be there recording some of the presentations.

Here is a more detailed agenda. Below are links to the presentation materials for the day.

A New Year at City Hall

Today was a big day at City Hall. Hundreds packed the building for the swearing-in of new Mayor Ed Murray, new Councilmember Kshama Sawant, the three reelected Councilmembers and our reelected City Attorney.

Working together, those of us in the City have a fresh opportunity to build the public’s trust and confidence in local government.

The Council also held our first Full Council meeting of the year, where we finalized City Council committee and regional committee assignments. I will chair the Education and Governance Committee, which will focus on realizing the goal of voluntary, high-quality, affordable preschool available to all Seattle’s children. The Committee also oversees intergovernmental relations, the City’s personnel policies, and any legislative matters relating to ethics and elections.

In addition, my colleagues selected me to serve as the President of the City Council for 2014-2015. This means that I chair the City Council meetings and ensure all members of the legislative department can perform their work efficiently and effectively. Below are the remarks I made in acceptance of this position: