Proposition Summary

MINIMUM WAGE INCREASE. INITIATIVE STATUTE. Increases the state minimum wage for all industries to $5.00 per hour on March 1, 1997, and then to $5.75 per hour on March 1, 1998. Requires the California Industrial Welfare Commission to adopt minimum wage orders consistent with this section, which orders shall be final and conclusive for all purposes. Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: The fiscal effect of this measure would depend on whether the federal minimum wage increase passed by Congress in August is signed into law. Because California's minimum wage must be at least as high as the federal rate, an increase in the federal rate would reduce the incremental fiscal effects of this measure. Unknown net impact on state and local government revenues, primarily depending on the measure's effect on the level of employment, income, and taxable sales in California. Annual state and local government wage-related costs of approximately $300 million (about $120 million if the federal minimum wage increase is enacted). Net annual savings in state health and welfare programs, potentially in the low tens of millions of dollars ($10 million to $15 million if the federal minimum wage is enacted).

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Popular Vote Results

Y: 5937569; A: 61.5; N: 3724598; B: 38.5

Election Type

General Election

Proposition Type


For Author

Rev. Kathryn Cooper-Ledesma, President, California Council of Churches; Dr. Regene Mitchell, President, Consumer Federation of California; Howard Owens, Legislative Director, Congress of California Seniors

Against Author

Sheldon Grossman, Owner, Bixby Knolls Car Wash, Long Beach; Connie Trimble, Owner, Barron's Family Restaurant, Burbank; William H. Merwin, Owner, Hunn & Merwin & Merwin Farm, Yolo County

Rebuttal Author

Professor Milton Friedman, Nobel Laureate in Economics; Professor William R. Allen, Former President, Western Economic Association; Professor Michael Darby, Former Undersecretary for Economic Affairs, United States Department of Commerce

Rebuttal Against Author

Kenneth Arrow, Nobel Prize Laureate in Economics, Stanford University; Cliff Waldeck, President, California Small Business Owners Alliance; Hon. Hilda Solis, Chair, California State Legislature Women's Caucus