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<DIV>For those that are not registered with the NY Times, here is the article
that Mark referenced:</DIV>
<DIV> </DIV>
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<DIV class=timestamp>January 11, 2007</DIV>
<DIV class=kicker></DIV>
<H1><NYT_HEADLINE type=" " version="1.0">For $7.93 an Hour, It’s Worth a Trip
Across a State Line </NYT_HEADLINE></H1><NYT_BYLINE type=" "
version="1.0"></NYT_BYLINE>
<DIV class=byline>By <A title="More Articles by Timothy Egan"
href="http://topics.nytimes.com/top/reference/timestopics/people/e/timothy_egan/index.html?inline=nyt-per">TIMOTHY
EGAN</A></DIV><NYT_TEXT></NYT_TEXT>
<DIV id=articleBody>
<P>LIBERTY LAKE, Wash., Jan. 9 — Just eight miles separate this town on the
Washington side of the state border from Post Falls on the <A
title="More news and information about Idaho."
href="http://topics.nytimes.com/top/news/national/usstatesterritoriesandpossessions/idaho/index.html?inline=nyt-geo">Idaho</A>
side. But the towns are nearly $3 an hour apart in the required minimum wage.
Washington pays the highest in the nation, just under $8 an hour, and Idaho has
among the lowest, matching 21 states that have not raised the hourly wage beyond
the federal minimum of $5.15.</P>
<P>Nearly a decade ago, when voters in Washington approved a measure that would
give the state’s lowest-paid workers a raise nearly every year, many business
leaders predicted that small towns on this side of the state line would
suffer.</P>
<P>But instead of shriveling up, small-business owners in Washington say they
have prospered far beyond their expectations. In fact, as a significant increase
in the national minimum wage heads toward law, businesses here at the dividing
line between two economies — a real-life laboratory for the debate — have found
that raising prices to compensate for higher wages does not necessarily lead to
losses in jobs and profits. </P>
<P>Idaho teenagers cross the state line to work in fast-food restaurants in
Washington, where the minimum wage is 54 percent higher. That has forced
businesses in Idaho to raise their wages to compete. </P>
<P>Business owners say they have had to increase prices somewhat to keep up. But
both states are among the nation’s leaders in the growth of jobs and personal
income, suggesting that an increase in the minimum wage has not hurt the overall
economy. </P>
<P>“We’re paying the highest wage we’ve ever had to pay, and our business is
still up more than 11 percent over last year,” said Tom Singleton, who manages a
Papa Murphy’s takeout pizza store here, with 13 employees. </P>
<P>His store is flooded with job applicants from Idaho, Mr. Singleton said. Like
other business managers in Washington, he said he had less turnover because the
jobs paid more.</P>
<P>By contrast, an Idaho restaurant owner, Rob Elder, said he paid more than the
minimum wage because he could not find anyone to work for the Idaho minimum at
his Post Falls restaurant, the Hot Rod Cafe. </P>
<P>“At $5.15 an hour, I get zero applicants — or maybe a guy with one leg who
wouldn’t pass a drug test and wouldn’t show up on Saturday night because he
wants to get drunk with his buddies,” Mr. Elder said. </P>
<P>For years, economists have debated the effect that raising the minimum wage
would have on business. While the federal minimum wage has not gone up for 10
years, 29 states have raised their wage beyond the federal minimum.</P>
<P>These increases, according to critics like Brendan Flanagan of the National
Restaurant Association, are a burden on the small, mostly family-run businesses
in fast food and agriculture that employ workers at the lowest end of the pay
scale. </P>
<P>“We see the political momentum for this,” said Mr. Flanagan, a vice president
at the association, “but we cannot ignore what our members are telling us, which
is that it will lead to job losses.”</P>
<P>But the state’s major business lobby, the Association of Washington Business,
is no longer fighting the minimum-wage law, which is adjusted every year in line
with the consumer price index. </P>
<P>“You don’t see us screaming out loud about this,” said Don Brunell, president
of the trade group, which represents 6,300 members.</P>
<P>“It’s almost a no-brainer,” Mr. Brunell said, that the federal minimum should
go higher. Association officials say they would like to see some flexibility for
rural and small-town businesses, however.</P>
<P>Washington’s robust economy, which added nearly 90,000 jobs last year, is
proof that even with the country’s highest minimum wage, “this is a great place
to do business,” Mr. Brunell said. </P>
<P>During a recession five years ago, the same group had argued that
Washington’s high minimum wage law would send businesses fleeing to Idaho. The
group sent out a news release with a criticism of the law from John Fazzari, who
owns a family-run pizza business in Clarkston, Wash., just minutes from the
Idaho town of Lewiston. </P>
<P>But now Mr. Fazzari says business has never been better, and he has no desire
to move to Idaho. </P>
<P>“To tell you the truth, my business is fantastic,” he said in an interview.
“I’ve never done as much business in my life.”</P>
<P>Mr. Fazzari employs 42 people at his pizza parlor. New workers make the
Washington minimum, $7.93 an hour, but veteran employees make more. To
compensate for the required annual increase in the minimum wage, Mr. Fazzari
said he raises prices slightly. But he said most customers barely notice. </P>
<P>He sells more pizza, he said, because he has a better product, and because
his customers are loyal. </P>
<P>“If you look 10 years down the road, we will probably have no minimum wage
jobs on this side of the border, and lots of higher-income jobs,” Mr. Fazzari
said.</P>
<P>Job figures from both states tend to support his point. While Idaho leads the
nation in new job growth, it has a far higher percentage of minimum-wage jobs
than Washington. Minimum-wage positions make up just 2.4 percent of the jobs in
Washington, while about 13 percent of the jobs in Idaho pay at or less than the
proposed federal minimum wage, according to a study done for the state last
year.</P>
<P>Part of the difference could be accounted for by a lower cost of living in
Idaho and the higher percentage of technology, manufacturing and government jobs
in Washington, economists say. Still, it is hard to find a teenager in Idaho who
lives anywhere near Washington who is willing to work for $5.15 an hour. </P>
<P>“Are you kidding? There are so many jobs nearby that pay way more than
minimum wage,” said Jennifer Stadtfeldt, who is 17 and lives in Coeur d’Alene,
which is just a few minutes from Washington. She pointed out that Taco Bell,
McDonald’s and other fast-food outlets in her town were posting signs trying to
entice entry-level workers with a starting pay of $7 an hour.</P>
<P>The House today passed a bill increasing the minimum wage, and about 13
million workers would see a pay raise if the Senate and President Bush approve
it. Mr. Bush has said he would approve the wage increase so long as concerns of
small-business owners were taken into account; the Senate has not yet taken up
the bill. </P>
<P>Several studies have concluded that modest changes in the minimum wage have
little effect on employment. A study two months ago by an economist at <A
title="More articles about Washington State University"
href="http://topics.nytimes.com/top/reference/timestopics/organizations/w/washington_state_university/index.html?inline=nyt-org">Washington
State University</A> seemed to back the experience of Clarkston and other border
towns in Washington. The economist, David Holland, said job loss was minimal
when higher wages were forced on all businesses. About 97 percent of all
minimum-wage workers were better off when wages went up, he wrote.</P>
<P>But other business groups argue that an increase would hurt consumers and
workers at the low end. </P>
<P>In a survey released on the eve of the November elections — in which voters
in six states considered raising their minimum wages — the National Restaurant
Association said restaurants expected to raise their prices and eliminate some
jobs if the voters approved the measures. The initiatives all passed. </P>
<P>Here on this border, business owners have found small ways to raise their
prices, and customers say they have barely noticed. </P>
<P>“We used to have a coupon, $3 off on any family-size pizza, and we changed
that to $2 off,” said Mr. Singleton, of Papa Murphy’s. “I haven’t heard a single
complaint.”</P></DIV></DIV>
<DIV style="FONT: 10pt arial">----- Original Message -----
<DIV style="BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A
title=msolomon@moscow.com href="mailto:msolomon@moscow.com">Mark Solomon</A>
</DIV>
<DIV><B>To:</B> <A title=thansen@moscow.com href="mailto:thansen@moscow.com">Tom
Hansen</A> ; <A title=vision2020@moscow.com
href="mailto:vision2020@moscow.com">Vision 2020</A> </DIV>
<DIV><B>Sent:</B> Thursday, January 11, 2007 7:27 AM</DIV>
<DIV><B>Subject:</B> Re: [Vision2020] In D.C., Bill Sali Quick to Take
Lead</DIV></DIV>
<DIV><BR></DIV>
<DIV>Too bad Sali probably doesn't read the NY Times which features an excellent
article today on the effect of minimum wage laws on border towns in WA and ID.
No, Moscow doesn't get a mention, but Post Falls and Clarkston do.</DIV>
<DIV><BR></DIV>
<DIV><FONT color=#000000 size=+1><A
href="http://www.nytimes.com/2007/01/11/us/11minimum.html?hp&ex=1168578000&en=bf304392cdc5baf4&ei=5094&partner=homepage">http://www.nytimes.com/2007/01/11/us/11minimum.html?hp&ex=116857<SPAN></SPAN>8000&en=bf304392cdc5baf4&ei=5094&partner=homepage</A></FONT></DIV>
<DIV><BR></DIV>
<DIV>Mark</DIV>
<DIV><BR></DIV>
<DIV><BR></DIV>
<DIV>At 6:06 AM -0800 1/11/07, Tom Hansen wrote:</DIV>
<BLOCKQUOTE cite="" type="cite">>From today's (January 11, 2007) Spokesman
Review -<BR><BR>What Rep. Sali voted against:<BR>HR 1 - Homeland security
measures<BR>HR 2 - Increase of minimum wage<BR><BR>What Rep. Sali is
sponsoring:<BR>HR 26 - Commends Boise State University for their victory in
the Fiesta Bowl<BR>(other bills establishing English as the official US
language and a<BR>balnced-budget
amendment)<BR><BR>---------------------------------------------------------------<BR><BR>In
D.C., Bill Sali quick to take lead<BR>Sense of humor key to his
approach<BR>Parker Howell<BR>Staff writer<BR>January 11, 2007<BR><BR>New Idaho
Congressman Bill Sali proposed a bill Wednesday to combat obesity<BR>by
reducing the Earth's gravity, saying that's no more unreasonable than
the<BR>Democrats' legislation to increase the federal minimum
wage.<BR><BR>Both defy "natural laws," he said.<BR><BR>"The well-intentioned
desire to help the poor apparently will not be<BR>restrained by the rules and
principles of the free market that otherwise do<BR>restrain American
businesses and workers," Sali told the House of<BR>Representatives.
"Apparently, Congress can change the rules that would<BR>otherwise affect the
affairs of mankind."<BR><BR> <BR>The Democratic-controlled House voted
315-116 to raise the federal minimum<BR>wage to $7.25 an hour, with more than
80 Republicans joining Democrats to<BR>pass it. But Sali stuck to his stance
that the market, not government,<BR>should determine how much workers are
worth to employers.<BR><BR>"Obviously, it was a facetious notion to suspend
the laws of gravity," he<BR>told The Spokesman-Review by phone from
Washington, D.C., about his "Obesity<BR>Reduction and Health Promotion Act,"
which proposed helping Americans shed<BR>pounds by cutting gravity by 10
percent. "The same is true of the act we<BR>took today."<BR><BR>In his first
few days on the job, Sali, 52, has been elected leader of the<BR>small
freshman class of Republicans, was invited to a meeting with President<BR>Bush
and voted against several bills sponsored by Democrats.<BR><BR>Although Sali
spent 16 years as a state representative from Kuna, moving to<BR>Washington,
D.C., has taken some getting used to, he said.<BR><BR>"Things are so much
bigger in terms of scale and scope here," he said. "In<BR>the Idaho
Legislature, for example, I didn't have any staff. It was
just<BR>me."<BR><BR>He now has to deal with OSHA inspections of his office and
training his<BR>employees in ethics and anti-discrimination policies, he
said.<BR><BR>As president of his class, he is helping fellow freshmen learn
legislative<BR>processes and procedures, he said. On the advice of past class
presidents,<BR>he is coordinating social events with new Democrats - both for
building<BR>relationships and for the "practical benefit" of moving
legislation.<BR><BR>Sali and a small group of other legislators met with
President Bush at the<BR>White House last week to discuss the Iraq
war.<BR><BR>"It was really something to be in there," he said. "It was kind of
one of<BR>those 'pinch me' moments."<BR><BR>He said Bush has "spent a lot of
time listening" to military commanders and<BR>will act on their
advice.<BR><BR>"The notion that we're going to end sectarian violence over
there, I think,<BR>is not even on the table; the president expressed that
through a number of<BR>his people," he said, adding that making peace between
warring factions is<BR>"not achievable."<BR><BR>"I don't think that's our job.
I do think our job is to help make sure this<BR>fledgling Iraqi government is
going to stand on its own two feet," he said.<BR>"There's a bunch of pent-up
emotion over there and a lot of pent-up desire.<BR>We may end up with a civil
war before they get things straightened out. In</BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite">the affairs of mankind, sometimes that's what
you need."<BR><BR>Sali has also participated in several House votes, including
the<BR>$2.10-an-hour minimum wage increase, to take effect over two years.
The<BR>increase is arbitrary, not tied to how much an employee's work is
really<BR>worth, he said.<BR><BR>"It's just to give people a perceived pay
raise," he said. "The underlying<BR>problem is government
spending."<BR><BR>His obesity speech is characteristic of the congressman's
outspoken style,<BR>said former colleagues from the Idaho
Legislature.<BR><BR>"That's his sense of humor," said Rep. Frank Henderson,
R-Post Falls.<BR><BR>Rep. Phil Hart, R-Athol, agreed, recalling a time Sali
proposed licensing<BR>legislators when lawmakers discussed licensing
contractors. Even though he<BR>didn't plan to introduce it, he actually held
up a completed bill.<BR><BR>"He's a very principled man, and he's not afraid
to stand by himself if he<BR>has to," Hart said. "I think he's already showing
that. He hasn't changed<BR>since he's been in the Legislature."<BR><BR>But
Rep. George Sayler, D-Coeur d'Alene, said using the logic of Sali's<BR>obesity
proposal, legislators should revoke government regulations that<BR>benefit
businesses as well.<BR><BR>Congressional Democrats will likely succeed in
their "100 Hours" plan to<BR>pass several bills within the first 100 working
hours of the new Congress,<BR>Sali said. But he said Democrats are
circumventing the committee process and<BR>claiming to know what Americans
need, which is "elitist" and "arrogant."<BR><BR>"If they were trying to do
what's right, they would be spending the time to<BR>go through the committee
process," he said. "I've always been a real<BR>advocate of slowing down the
legislative process and giving everyone the<BR>opportunity to have their
say."<BR><BR>So far, Sali has voted against "pay-as-you-go" rules designed to
prevent<BR>legislators from adding to the national debt. He said it will lead
to "tax<BR>increases combined with cuts to programs like defense."<BR><BR>He
has also voted against legislation that would add another committee
with<BR>oversight power over intelligence. Adding one actually counters the
Sept. 11<BR>Commission's findings by adding another layer of bureaucracy, he
said.<BR><BR>Sali has signed up to co-sponsor amendments to balance the budget
and make<BR>English the official U.S. language, he said.<BR><BR>He and fellow
Idaho Republican Rep. Mike Simpson are co-sponsors of H.R. 26,<BR>which
commends the Boise State University football team on its recent win<BR>against
Oklahoma in the Fiesta Bowl, he said. He attended the game, calling<BR>it "an
indescribable experience."<BR><BR>The bill will "probably pass on a consent
calendar," he said. "It will be a<BR>nice piece of congressional
history."<BR><BR>---------------------------------------------------------------<BR><BR>Seeya
round town, Moscow.<BR><BR>Tom Hansen<BR>Moscow, Idaho<BR><BR>"Forty percent
of the mass of every tree in the forest is crude oil. Stop<BR>and think
about that. We call them fossil fuels because they used to be<BR>live
stuff . . . now in the ground is turned into crude oil."<BR><BR>- Bill Sali
(September 21, 2006)</BLOCKQUOTE>
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