With a $15 minimum wage ballot initiative likely in November, state senator proposes partial measure
Posted May 07, 2024 in Press Releases
Today, Ohio Senator Bill Blessing gave sponsor testimony on Senate Bill 256, a measure that would raise the minimum wage to $15 per hour for most Ohio workers and create a refundable Ohio Earned Income Tax Credit (EITC). A citizens’ ballot measure now gathering signatures for inclusion on Ohio’s ballot would also raise the wage to $15, while making that increase more secure and more valuable to more workers.
Policy Matters supports all efforts to raise Ohioans’ wages. “It’s encouraging that some legislators are catching up with what Ohio voters have known for a long time: that Ohio needs a livable minimum wage of at least $15 per hour, so working people have a shot at making ends meet,” said Policy Matters Ohio economist Michael Shields. “We also agree that Ohioans have good reason to distrust the sincerity of this statehouse, where attempts to subvert citizens’ initiatives and voter prerogatives have become familiar ploys.”
A citizen’s ballot initiative to raise the wage will appear before voters this November if it gathers the 413,487 valid signatures needed for inclusion on the ballot by July 3. Policy Matters has found that that measure would benefit nearly 1 million Ohioans. SB 256 would have widespread benefits too, but the ballot measure is better for working people in three key ways:
- The ballot measure would give the $15 minimum wage the protection of Ohio’s Constitution, whereas SB 256 could easily be undone by the legislature. “Ohio’s minimum wage deserves constitutional protection, said Shields. “Without it, the same state legislators who tried to move the bar on passing a citizens’ initiative last summer would have the power to block or slow the phase-in to $15 or take other measures to favor the business lobby over protecting working Ohioans. Legislators in Michigan did just that.”
- The ballot measure would take full effect in 2026; the legislation would take until 2028. “Half a million Ohioans work for less than $15 per hour, with another half million making slightly above. These workers need a raise now,” said Shields. “Not only would SB 256 take an extra two years to reach workers; it would be worth about 60 cents less under target inflation rates of 2% or a full dollar less if current inflation rates persist — and it would never catch up.”
- The ballot measure covers Ohioans left out under Ohio’s current minimum wage. “The ballot measure would cover some of the lowest paid workers left out under current law,” said Shields. “These include workers who receive tips; workers with a disability; and youth workers. The so-called ‘tip credit’ opens the door to wage theft and is one reason waiters and waitresses — who made a median wage of $13.92 an hour in 2023 — are among the lowest-paid workers in the state.”
Senator Blessing’s legislation would also enhance Ohio’s Earned Income Tax Credit: a positive measure that would supplement wages with targeted refundable tax credits for working people. Policy Matters has long supported a substantial refundable EITC.
“A refundable EITC would put a little more money in the pockets of low paid Ohioans. The legislation acknowledges how refundable credits and modernized worker protections could create greater economic security across the state,” said Shields. “It’s the kind of legislation that should be championed, but because of the legislature’s track record, there’s no way to ensure full implementation once the threat of the citizens’ vote has passed.”
The takeaway:
“After earlier decades, when state legislators let inflation cut down the value of Ohio’s minimum wage until voters tied it to inflation, legislators may at last step in to pass a livable minimum wage — now that Ohio voters demand it,” said Shields. “Even if they do, voters should make it to the polls this November to pass a livable wage that has the protection of the state’s constitution, takes effect sooner to retain more value, and covers everyone.”
###