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What Prop 32 Means for Richmond

$18 Minimum Wage Initiative

Over a decade ago, progressive leaders on the Richmond City Council led the effort to pass the Minimum Wage Increase Ordinance. Since then, major economic and social changes have taken place which have affected the quality of life for all working people. From the COVID-19 pandemic to hyperinflation in consumer goods, today’s households are holding on by a thread.

According to data from the U.S. Census Bureau and Zillow, an average Bay Area adult currently needs to earn over $100,000 ($50 hourly) to afford a one-bedroom apartment.

City

Median observed rent (Feb. 2024)

Salary needed for single adult

Hourly wage needed for a single adult

San Jose, CA

$3,107.32

$124,292.91

$59.76

San Francisco, CA

$3,276.27

$131,050.81

$63.01

Oakland, CA

$2,483.37

$99,334.88

$47.76

Fremont, CA

$2,933.49

$117,339.70

$56.41

Source: U.S. Census Bureau and Zillow. "Housing Costs in the Bay Area: Median Rents and Salaries Needed." April 24, 2024. https://www.consumeraffairs.com/movers/income-needed-to-move-to-major-cities.

 

How Proposition 32 Works 

Prop 32 offers a long overdue living wage increase for the most at-risk families and individuals in Richmond. Employers with 26 or more employees would increase their minimum wage to $18 by January 1, 2025. Those with 25 or fewer employees would have an additional year to do so.

The Yes on California Living Wage Act is the primary supporter of Prop 32. Between 1996 to 2022, a vast majority of U.S. voters (92.86%) have approved minimum wage increases. We encourage you to read about the measure and plan on voting "yes" this November.

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What does it cost for Richmond families to survive?

The city’s current minimum wage ($17.20 per hour as of January 2024), can be found here. However, the concept of what a “living wage” is varies widely.

“Three people in the country have as much wealth as the entire bottom half of the population, and we all know it's the bottom half that gets out there every day to do the work. And those workers deserve compensation, not living from meager paycheck to meager paycheck with no assurance of enough food, medical care, housing, transportation, and technological connectivity; not worrying about a toothache requiring a dentist they can't afford. This capitalism run amok needs reigning in. A correction is long overdue.” — Kathleen Wimer, Richmond Resident

The consumer price index (CPI) for food and beverage has increased by over 5% per year since 2020 (the start of the COVID-19 pandemic), for example.

202404_Consumer_Price_Index_for_Food_and_Beverages_BLS.png

Bureau of Labor Statistics. "Consumer Price Index for Food and Beverages." April 2024. https://www.bls.gov/cpi/.

What’s a true living wage?

Based on a 2024 study by Dr. Amy K. Glasmeier and the Massachusetts Institute of Technology, a single adult in Contra Costa County with no children would need a pre-tax income of $60,621 for basic necessities. These include food, medical, housing, transportation, and internet service. 

A dual-income household with two children would need $156,747 in pre-tax income to maintain a similar quality of life. According to the same study, a “living wage” for a single adult without children is $29.14 per hour. A living wage for two adults raising two children rises to $37.68 per hour.

Estimated Annual Expenses for Adults in Contra Costa County

Type

0 Children

1 Child

Food

$5,013

$7,390

Child Care

$0

$17,741

Medical

$2,837

$9,402

Housing

$22,042

$31,282

Transportation

$11,618

$13,446

Civic

$3,032

$5,335

Internet & Mobile

$1,901

$1,901

Other

$4,739

$8,459

Required annual income after taxes

$51,182

$94,955

Annual taxes

$9,439

$16,905

Required annual income before taxes

$60,621

$111,860

Source: Dr. Amy K. Glasmeier and Massachusetts Institute of Technology. "Living Wage Calculator for Contra Costa County, CA." 2024. https://livingwage.mit.edu/.

Typical Salaries for Common Occupations in Contra Costa County

Occupational Area

Typical Annual Salary

Management

$155,120

Business & Financial Operations

$94,210

Computer & Mathematical

$143,670

Architecture & Engineering

$116,250

Life, Physical, & Social Science

$97,210

Community & Social Service

$65,450

Legal

$153,910

Education, Training, & Library

$75,880

Arts, Design, Entertainment, Sports, & Media

$107,330

Healthcare Practitioners & Technical

$119,400

Healthcare Support

$37,760

Protective Service

$64,790

Food Preparation & Serving Related

$37,220

Building & Grounds Cleaning & Maintenance

$41,940

Personal Care & Service

$42,080

Sales & Related

$58,040

Office & Administrative Support

$52,170

Farming, Fishing, & Forestry

$36,710

Construction & Extraction

$69,630

Installation, Maintenance, & Repair

$63,170

Production

$48,670

Transportation & Material Moving

$46,880

Source: Dr. Amy K. Glasmeier and Massachusetts Institute of Technology. "Living Wage Calculator for Contra Costa County, CA." 2024. https://livingwage.mit.edu/.

Why Vote Yes on CA Prop 32?

Voting “yes” on a $18 minimum wage is a necessary start to ensure that all Californians can live a fulfilling and dignified life. Please plan on supporting this critical measure this November.

 

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