Minimum Wage Increase. Initiative Statute.

Increases California\u27s minimum wage to $7.40 per hour, effective January 1, 2006, and then to $7.90 per hour, effective January 1, 2007. Establishes annual automatic adjustment of minimum wage commencing January 1, 2008, calculated by multiplying the minimum wage in effect on December 31 by the percentage of inflation that occurred during the previous year, using the California Consumer Price Index for All Urban Consumers or its successor index. Directs Industrial Welfare Commission to adopt a minimum wage order consistent with this initiative. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Potential net reduction, but probably not significant, in annual state and local government revenues. Annual state and local governmental costs - primarily in health and child care programs - in the range of $100 million