127th MAINE LEGISLATURE
LD 674 LR 1301(02)
An Act To Support Maine's Working Families
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Labor, Commerce, Research and Economic Development
Fiscal Note Required: Yes
             
Fiscal Note
FY 2015-16 FY 2016-17 Projections  FY 2017-18 Projections  FY 2018-19
Net Cost (Savings)
General Fund $0 $16,500 $16,500 $16,500
Appropriations/Allocations
General Fund $0 $16,500 $16,500 $16,500
Fiscal Detail and Notes
This bill includes ongoing General Fund appropriations of $16,500 per year to the Bureau of Labor Standards within the Maine Department of Labor beginning in fiscal year 2016-17 and continuing until the minimum wage reaches $10.00 per hour in January of 2020.  Of this annual amount, $3,500 per year is for updating the minimum wage poster and other related publications, $5,000 is for postage costs to distribute the updated poster and publications and $8,000 is for travel costs associated with compliance, education and outreach. 
The 4-step increase in the minimum wage may not increase salary costs to the State until the $10.00 per hour rate begins on January 1, 2020. The future State Government impact of the changes to the minimum wage will depend on the salary schedules in place at the time the increases occur and cannot be estimated at this time. 
The increased wages required by this initiative would create costs to municipalites which would vary by individual municipality. As with State Government, the municipal impact would depend on the existing rates of pay for the lowest paid employees in each municipality at the time a higher wage would be imposed and cannot be estimated at this time.