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Thursday, April 11, 2019

OC Expects $1M Budget Hit Eventually With Minimum Wage Hike

OCEAN CITY — The Town of Ocean City is now grappling with the minimum wage increase approved by the General Assembly as it moves through the budget process.

During the General Assembly session that ended this week, state lawmakers approved a bill gradually increasing the minimum wage in Maryland to $15 per hour by 2025. Gov. Larry Hogan last week vetoed the legislation, but the veto was overridden by the House and Senate.

The current minimum wage in Maryland is $10.10 per hour and that will increase to an even $11 per hour on July 1. Over the next four years, the minimum wage will be increased on a graduated scale until it reaches $15. The deadline to reach the $15 rate is stretched out until 2028 for businesses with fewer than 15 employees, a measure included in the bill to insulate small businesses somewhat from the rather onerous increase.

However, as the resort’s largest employer, the Town of Ocean City will likely bear the brunt of the minimum wage increase the most at least locally. During budget work sessions this week, Budget Manager Jennie Knapp said the fiscal year 2020 spending plan anticipated the wage hike and included the next step in the lower end of the town’s pay scale, but there will be challenges as the minimum wage escalates in future years as outlined in the legislation.

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9 comments:

Unknown said...

They'll just jack up the parking rates again to compensate for the losses.

Anonymous said...

How did I know that gubmint raising the minimum wage was going to cost me more in taxes?

Anonymous said...

They will do what they do best raise taxes.

Anonymous said...

Businesses in OC rip enough money from everyone that goes there to afford to pay workers $15/hr. If a worker is lazy or worthless, hire a replacement worth the cost. The businesses are the ones that chose to try to make a years profit in 3 or 4 months

Anonymous said...

Business owners should take the hit.not employees or customers. Owners can afford it but no they (owners) never give up a dime.

Anonymous said...

If the Council didn’t give all the money to the unions there wouldn’t be a problem

Anonymous said...


They'll blame the minimum increase for their normal proliferate spending.

Anonymous said...

Your level of intelligence is beginning to show 6:14

Anonymous said...

How about the 1.8 million extra they wasted by changing the fire dept.schedule in overtime!