Leading Question

Q. Has Florida's minimum-wage increase been bad for business?

The debate continues. In November 2004, Florida voters, over the objections of many small business owners and organizations, decided to amend the state constitution and raise the minimum wage from $5.15 to $6.15. Just last month, the hourly wage climbed another 25 cents because that same vote tied the minimum wage to the consumer price index. Currently, Florida's minimum wage is $6.40, exactly $1.25 more than the federal minimum wage.

So has it impacted local business? Tony Newton, Jobs ETC project manager in Sarasota/Manatee, sees employers and job applicants all day long. So far, the increase hasn't had any effect, he says.

"If you're an employer, you can't hire someone for $6.15 an hour. Even jobs at $8 to $15 an hour have a lack of people. It's simply not an issue. Housekeepers in hotels make $10 an hour, including benefits; UPS drivers make $8.50 an hour; and commercial truck drivers make $15 an hour," he says. "I had an employer today who had advertised jobs at $8.50 and up and no one was interested."

For the restaurant industry, however, the answer is "ouch!" according to Lea Crusberg of the Florida Restaurant Association. "Payroll has gone up," she says.

Ed Chiles, the CEO of The Chiles Group, which owns the Sandbar Restaurant, the BeachHouse and Mar Vista restaurants, says the increase in minimum wage has had a big effect on his business. "The first six months it cost us $68,000," he says. "Double that for a year. That's quite a big effect on our profitability."

Bob Kirscher, president of The Broken Egg on Siesta Key and the local chapter president and board member of the Florida Restaurant Association, says his payroll probably increased another $35,000 to $40,000 in the first six months since the hike went into effect, and he's raised prices between 3 to 4 percent to compensate. Most customers don't notice, he admits. Still, the automatic annual wage hike makes him cranky. "Every time we raise the minimum wage there's inflationary pressure."

The bigger picture is more complicated, says University of Florida economist David Denslow. "The Florida economy has been growing so strongly it's hard to imagine the effect of the minimum wage would be anything other than minor," he says. Still, as the minimum wage continues to be adjusted for inflation, it may have an effect in the future.

"In general," he says, "the minimum wage is poor social policy." It may draw women with children into the workplace, displacing young high school dropouts who then become disaffected. (Think France, which has a high minimum wage, and the riots last fall, Denslow says.) "Better social policy might be to require employers to offer health insurance," according to Denslow. "There, the state does have an interest because uninsured workers are likely to wind up adding to hospital costs for the rest of us because they cannot pay their bills." -Susan Burns

Now Hear This

From Charleston South Carolina Mayor Joseph P. Riley Jr.'s keynote speech at The Downtown Partnerhip's 2005 Annual Dinner:

"Rule No. 1: You bow to the street, you honor the street."

"There's never any excuse-in any circumstance-to build something in our cities that isn't beautiful."

"Great cities save the waterfront for the public."

"The public zone is the place where we come to reaffirm our citizenship-and everyone owns it equally."

BUSINESS CALENDAR

FEBRUARY 2
Greater Sarasota Chamber partners meeting 8 to 9 a.m. at the chamber boardroom, 1945 Fruitville Road, Sarasota. Call 955-2508 ext. 234.

FEBRUARY 3
Greater Sarasota Chamber's Annual Kick-Off Breakfast, unveiling new programs, services and benefits. 7:30 a.m. at Michael's On East, 1212 East Ave. S., Sarasota. $25 for members, $40 for non-members. Call 955-2508 ext. 239.

FEBRUARY 6
Economic Development Corporation of Sarasota County investor update breakfast 7:45 a.m. at the Boca Royale Golf & Country Club in Englewood. Keynote speaker is Sarasota County Commissioner Shannon Staub. Industry speaker is Wendy Brandon, CEO of Englewood Community Hospital. $20 for EDC investors, $25 for guests. Call 309-1200 ext. #203.

FEBRUARY 8
Handling Difficult Customers: How To Turn Complaints into Compliments, part of Sarasota's Chamber U Executive Breakfast Series. 8 to 9:30 a.m. at Michael's On East, 1212 East Ave. S., Sarasota. $30 for members ($35 at the door), $35 for non-members ($40 at the door). Call 955-2508 ext. 231 or RSVP online at SarasotaChamber.org.

FEBRUARY 22
Natural Capitalism seminar on how to better satisfy customers' needs, increase profits and help solve environmental problems. 8:30 a.m. to 12:30 p.m. at Manatee Community College Center for Innovation and Technology in Lakewood Ranch. Conducted by the Rocky Mountain Institute and presented by the Economic Development Corporation of Sarasota County and the Florida West Coast Resource Conservation and Development Council. $65. Call 309-1200 ext. #203.