A proposal requiring Howard County contractors to pay workers a sufficient minimum wage may cost the county more money in contracts.
But the potential increases are “reasonable” for the county to “do the right thing,” said the bill?s sponsor, Council Chairman Calvin Ball, D-District 2.
“If you look at the numerous studies that have come out [on living wage requirements], you will see the costs have been negligible,” he said.
Ball introduced a bill, co-sponsored by Councilwoman Jen Terrasa, D-District 3, that would require contractors to pay employees at least 125 percent of the federal poverty line, or $12.41 an hour.
Higher contract costs from rising wages could mean an expense increase from $101,000 for fiscal 2008 to $132,000 in five years, according to a review prepared by the council auditor.
A 1999 Johns Hopkins University study of 26 contracts in Baltimore City, which has had living wage requirements for several years, showed contract costs increased by 1.2 percent, according to the review.
Oversight of contractor compliance could cost $30,000 to $50,000 a year, the review states.
Ball said Howard County could even save money as companies spend less on recruitment efforts and experience higher productivity.
However, the potential increases were among the reasons the Howard County Chamber of Commerce opposed the bill. The measure will inflate wages of contracts, which should not be set by the government, the chamber stated in a position paper.
“The chamber really does believe the marketplace should set the wages,” Chamber President Pam Klahr said.
