New Law Could Require Arizona Cities to Reimburse State for Costs from Minimum Wage Increases
A state law that takes effect Tuesday could make Arizona municipalities and counties reimburse the state for new costs resulting from a local minimum wage above the statewide rate.
The Arizona Republic reports that provisions in a budget law enacted last spring requires the heads of state agencies and programs to calculate higher costs for services in communities with a higher minimum wage.
The measure approved by the Legislature and signed into law by Governor Doug Ducey also allows the state to then assess reimbursement amounts owed by local governments.
Supporters says it's only fair to protect taxpayers statewide from added costs resulting from decisions by local communities. But, critics argue it's a pressure tactic intended to discourage cities from raising minimum wages.