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Legislative Action

Christie vetoes minimum wage bill, Democrats vow to put measure on ballot

By Jenna Portnoy/The Star-Ledger The Star-Ledger 
 

TRENTON — Gov. Chris Christie rejected a bill today to raise the minimum wage and countered with a proposal of his own, virtually ensuring Democrats will ask voters in November whether they favor a $1-an-hour increase.

Christie said the Democrats’ bill, which would have raised the minimum wage from $7.25 to $8.50 and tied future increases to the rate of inflation, would have hurt the state’s economy.

"The sudden, significant minimum-wage increase in this bill, coupled with automatic raises each year tied to the Unites States Consumer Price Index, will jeopardize the economic recovery we all seek," Christie said in his conditional veto message to the Democrat-controlled Legislature.

On the deadline to act today, the Republican governor vetoed the bill (A2162) and countered with a scaled-back proposal to phase in, over three years, an increase of $1. In addition, the governor’s plan would eliminate the automatic hikes. New Jersey’s $7.25 rate mirrors the minimum set by the federal government in July 2009.

Christie tried to sweeten the pot with a promise to increase the earned income tax credit if Democrats went along with his plan.

Senate President Stephen Sweeney (D-Gloucester) and Assembly Speaker Sheila Oliver (D-Essex) denounced Christie’s counteroffer and vowed to ask voters to change the constitution to raise the minimum wage to $8.25 and tie future hikes to inflation.

Such a move, which requires a second vote in the Legislature, would bypass Christie because the governor has no role in the process of changing the Constitution.

"His action shows that he believes politics and politicians need to remain part of the process on minimum wage," Sweeney said. "I think they need to be removed from it entirely."

Oliver called Christie’s conditional veto "callous" action that leaves lawmakers no choice but to take it directly to voters.

"The optimal approach would have been for Gov. Christie to show some heart and approve this pro-worker measure as proposed," she said.

Republican lawmakers and the business community — from the Chamber of Commerce to the New Jersey Business and Industry Association — applauded what they called Christie’s measured approach.

But there was one notable exception.

The New Jersey chapter of the National Federation of Independent Business "expressed regret" over Christie’s plan to enact a minimum wage increase of any size in the current economic climate.

"This was a difficult decision for the governor and we appreciate his effort to soften the blow," said NFIB state director Laurie Ehlbeck. "But the bottom line is that it’s still a blow to small businesses and that’s going to harm the economy."

Ehlbeck called the Democrats’ proposal to tie future increases to inflation a "political giveaway."

Unions and advocacy groups said Christie’s offer wasn’t enough to help low-income residents.

AFL-CIO President Charles Wowkanech said his membership will lobby for approval of the referendum. New Jersey Working Families Alliance called the governor’s counterproposal "too little too late."

"Today Governor Christie proved once again that his only real constituency is the state’s wealthiest," Executive Director Bill Holland said. "And once again he holds the livelihoods of the working poor hostage by making an end to his tax hike on low-income workers conditional on the Legislature’s acceptance of a bad deal."

Christie used the earned income tax credit, which he slashed in his first year in office, as a bargaining chip last year after Democrats refused to enact his tax cut plan.

Christie was traveling out of state Sunday and today, but spokesman Kevin Roberts said the governor signed the conditional veto before he left New Jersey.

 Assembly Bills being tracked 2013 - 2014

A-720     Requires direct deposit for all State employee compensation on and after July 1, 2014; allows county, county college, municipality, and local school district to opt for mandatory direct deposit for all employee compensation on or after July 1, 2014.

A-1134   Established bill of rights for authorized family members of persons with developmental disabilities.

A-1196   "Thomas P. Canzanella Twenty First Century First Responders Protection Act"; concerns workers' compensation for public safety workers.

A-1273   Requires SHBP to provide certain information to participating public employers

A-2626   Requires public institutions of higher education to waive or reimburse application fee and transcipt fees for veterans and members of the military

A-2893    "Innovative Services for Persons with Developmental Disabilities Act"

A-3434    Caps at 35 percent share of State public employee pension and annuity funds portfolio that may be investes in combination of hedge funds, private equity, commodities, and real estate.

 

 

 

 

 

 

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