By Jimmy Dominguez, Executive Editor
There’s a lot of ways to describe life in California, but good money says the word “expensive” would be near the top of the list for a lot of residents. The cost of living in the Golden State is among the highest in the U.S., driven by the increasing price of housing, food, gas, and utilities – oh, and taxes, too.
Making ends meet is a frequent challenge for millions of Californians, which is why so many are paying close attention to Proposition 32. Should residents vote on Nov. 5 to approve Prop 32, the state would raise the minimum wage from $16 to $18 by 2026.
There are more than 5.6 million low-wage workers in California who already make less than $20 per hour, according to the UC-Berkeley Labor Center. For reference, the current cost-of-living in California is $2918, which is 1.32 times more expensive than the average in the United States.
For those like fourth-year psychology studies student Diana Rodriguez, the bump in pay would help to cover bills and the cost of their education.
“That would help us out a lot more with purchasing these parking passes”, Rodriguez said.
”Then when classes begin, you have a bit extra [for] purchasing textbooks … financial aid itself has changed so drastically that barely anyone is getting any sort of refund.”
Fast-food workers in the state saw an increase in wages this past April following a campaign by the California Fast Food Workers Union. According to the office of California Governor Gavin Newsom, the state created 7,400 fast food jobs since the law went into effect. In July, California set a state record for the most fast food jobs.
Workers now receive a minimum wage of $20 per hour, and while that has been a boon for hundreds of thousands of people, the passage of Prop 32 could also have a huge impact on some small business owners in the state.
“Minimum wage is a real significant factor mainly for small places and small shops,” said economics professor Jose N. Martinez, the co-director of the CSUDH South Bay Economic Institute. “The percentage of the labor costs represents a higher percentage of the total costs of doing business. It’d be prohibitive.”
Prop 32 would also impose the same higher minimum wage on both small businesses and larger corporations, meaning some family-owned businesses could see a decline in profits and become vulnerable to higher labor costs.
With Election Day less than two weeks away, some low-wage workers are likely waiting with baited breath for the outcome of the Prop 32 vote. Whether the measure passes or not, it could be the turning point for their financial future.
“I think $18 would be helpful as well to anyone else working in a retail store or as a student worker in a university,” said Rodriguez. “I think it could help.”
