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LivingWagas � Communities: Smarter Economic Development,LowerThan ExpectedCosts
<br />See Maxk D. Brenner & Stephanie Luce, The Effect of Living Wage Laws in New England (Univ. of Mass.,
<br />Political Economy Research Inst, Research Report, forti�comin� 2003) (£�ndin� that contract costs
<br />decreased in :�i terms in Boston and New Haven, but increasedin Hartford where only two contracts were
<br />covered, both of which were bid on an hourly basis and involvedlarge concentrations oflow-wageworkers).
<br />8 See David Neumark, How Living Wage ;.: a�� .•I,r,,-: Low-Wage Workers and Low-Income �'amaldes (Public
<br />Policy Institute of California, Mar. 2002).
<br />See Mark D. Sxenner, Jeannette Wicks-Lim t� Robert Pollin, Nleasuran� the Impact� Living Wage Luwr. A
<br />CriticalA�praisal ofDavid Neumark's How Living Wage Laws Aff'ect Low-Wage Workers and Low Income
<br />Families (Univ. of Mass, Political Economy Research Ins�., Working Paper No. 43, 2002).
<br />10 5an Jose, CA, in 2001 reported that the impact of the city's living wage law largely occurred in one city
<br />contract for janitorial services. While that contract had not 6een previously let, [�e city arrived at an esti-
<br />mated increased cost by comparin� the living wage requirement with the pievailir�� wages of janitorial
<br />services in the region.
<br />ll In Ypsilanti Township, only one contract was affected by the living wage requirement, resulting in a small
<br />wage increase for one temporary contract employee and a negligible total increase in the cost of the can
<br />tract. Telephone Interview with Karen I.ovejoy Roe, Supervisor, Ypsilanti Township, MI (Jan. 23, 2003)
<br />(on file with author).
<br />12 This range represents all cities for which we could obtain accurate budget information and which reported
<br />an actual cost increase (Alexandria, VA; Cambridge, MA, Hartford, CT; Hayward, CA; New Haven, CO;
<br />Pasadena, CA; Madison, WI and Ypsilanti, MI). In addition to reporting their overall operating budgets,
<br />Madison and Alexandria were able to share daYa on their municipal purchasing budgets. The reparted living
<br />wage contracc cost increases represented 0.07% and 0.33% of these cities' purchasing budgets, respectively.
<br />13 Administrators in Cambridge, Dane County, Hartford, Hayward, Madison, New Haven, Oakland,
<br />Pasadena, San Francisco, Ypsilanti, and Ypsilanti Township all described the contract price increases in
<br />their cities as "not significant."
<br />14 Telephone It�[erview with Daniel Bohrod, Comptroller, Madison, V� (Nov. 14, 2001) (on filewith author).
<br />15 Repost 6y City Mana�er Saundra Kee Borges to the Mayor and Council Members of Hartford, CT, p. 1
<br />(Mar. 2, 2001) (on file with author). In an unpublished estimate of the cost of its living wage law in 2002,
<br />the city found that while one contract increased by $7,391 or 22.4% over the prior year, none of the four
<br />other impacted contracts increased substantially, accounting for the changes in the scope of services.
<br />16 Telephone Interview with Jack Piczer, Director of Purchasing Department, Alexandria, VA (5epc. 17,
<br />2002) (on Fi[e with author)
<br />17 Telephone Interview with Ronald Guzi, PurchasingAgent, Warren, MI (Nov_ 16,2001) (on file with author).
<br />18 Telephone Interview with Public Works Department, Berkeley, CA (Feb. 28, 2003) (on file with author).
<br />19 Figure reflects the budget for human services in Dane County for fiscal years 2001 and 2002
<br />20 Figure reflects the average of the annual cost increases for Dane County human services contracts for fiscal
<br />years 2001 and 2002.
<br />21 Figure reflects the budget for contracts awarded to non-profit agencies in San Francisco in 2001
<br />22 Figure reflects the increased cost for San Franciscds human services contracts in 2001
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