Governor repeals automatic wage increases

WASILLA -- Gov. Frank Murkowski signed House Bill 199 earlier this month, repealing an automatic CPI, or Consumer Price Index, an automatic adjustment to the state's minimum wage. While the minimum wage will continue at $7.15 an hour, the highest minimum wage in the country, the automatic increase formula which would up the wage as the CPI increased is no longer in existence.

"We are concerned with the long-term effects an automatic adjustment could have on smaller employers, such as those in fisheries, tourism, food service and retail sectors," said Murkowski in a recent press release. "The result would likely be fewer entry-level jobs in these areas, and less ability for small, local companies to expand and create new economic and employment opportunities."

The Mat-Su Small Business Development Center serves as a resource for small business owners in the Valley. The center is available to help businesses make any adjustments because of the new law.

"We are available to assist new and current business owners as they adjust budgets, strategic plans and handle daily business to meet any changes in business or tax laws as mandated by any government body," said Anya Peterson-Frey, who works at the center.

Murkowski said that instead of an automatic increase, Alaska's minimum wage increases should be mandated by a public process, and that the Legislature should be able to debate those increases. He said he believes some small businesses would not be able to afford automatic increases.