Keystone Today

Gov. Tom Wolf (D-PA) and Rep. Patty Kim (D-Dauphin County) were at Wesley Union A.M.E. Zion Church in Harrisburg where they called on the General Assembly to pass legislation that would send funds to residents to help them recover from the COVID-19 pandemic.

According to a May 13 release, the plan worth $500 million in America Rescue Plan Act funds would send checks of $2,000 to millions of Pennsylvania residents. In February, Wolf released a $1.7 billion proposal to use unspent federal ARPA funds and while Senate and House Democrats have introduced Senate Bill 1619 and House Bill 2531, there has been no progress made and Wolf is urging the Republican led General Assembly to take action.

“I first introduced this plan four months ago,” said Wolf. “A lot has changed since then, from inflation to price increases to a war in Ukraine. Pennsylvanians need our support even more today than they did in February. Under my plan, Pennsylvania households earning $80,000 or less will get up to $2,000, and they can use the money for whatever they need. This plan will help Pennsylvanians get back on their feet right now – but I also want to look ahead, to the long-term solutions that will help keep Pennsylvanians on the path to prosperity. That’s why I support raising the minimum wage for all Pennsylvanians.”

Wolf’s proposal is intended for helping families who continue to recover economically from the COVID-19 pandemic through helping pay for pandemic related costs and the increased cost of living impacting the nation currently.

If the funds are not used, then the money will be returned to the federal government by Dec. 31, 2024.

“During recent months, the cost of housing, utilities, energy, transportation and even groceries have all increased,” said Kim. “Almost all essential costs have risen across the board in Pennsylvania, except for the cost of labor.”

Wolf and Kim also called on the state to raise the minimum wage. Wolf has a plan that raises the state minimum to $12 per hour by July 1. Then, each subsequent year it would increase, getting to $15 per hour by 2028.

“In Pennsylvania, unlike all our neighboring states, the minimum wage has not budged since 2009,” Kim said. “This scenario all but guarantees severe and crippling economic hardships in Pennsylvania for people earning the lowest income. We are looking at a scenario where Pennsylvania’s working poor – those people working 40 or more hours a week – will still be struggling just to survive. PA needs to act.” 

Information from the Keystone Research Center shows that if the minimum wage had kept up with productivity growth since the 1960s, the minimum wage should be at $24 per hour. The MIT Living Wage calculator shows that a Pennsylvania adult, who works full time, needs to earn $16.93 and a single adult with a child needs $32.83 per hour. 

The Fair Labor Standards Act of 1938 established the hourly minimum wage rate at 25 cents for covered workers. It has been raised 22 times to keep up with costs rising, but the last rise was in July 2009. Due to inflation, the real value of minimum wage has decreased, according to the Congressional Research Service.

There are 30 states that have a higher minimum wage than $7.25 per hour.

By increasing the minimum wage to $15 per hour, those who directly benefit include 31.9% of Hispanic workers; 26.3% of Black workers; 15.7% of Asian workers; and 25.8% of workers of other races and ethnicities.

“So, I’m proud to join Governor Wolf in supporting the PA Opportunity Plan and a minimum wage increase, which not only supports a living wage in PA but also supports workers and households earning less than $80,000 a year – the people most affected by this changing economy and the lasting effects of the pandemic,” Kim said.