Santa Cruz, California welcomes the minimum wage increase.

Santa Cruz, California welcomes the minimum wage increase.

Living is Santa Cruz, California is easy and difficult. The lifestyle is easy, but the cost of living makes it difficult for the entry level worker. The California state law went into effect today  to raise the minimum wage from $7.50 per hour to $ 8.00. While this seems like a big increase, and nearly 1.5 million Californians will benefit from this, it is not enough to live on in most parts of California.

Wait people often get income above this due to good service whereby they receive tips, but still need this to make ends meet. Many other states have a tip credit programs that businesses use to offset this labor cost. Oftentimes the biggest expense of a business is labor cost. As you can imagine it is difficult for businesses to face this, as costs cut in to profitability, which is necessary to survive. Raising prices is not popular and many small businesses try to hold off as long as possible.

The City of Santa Cruz had adopted a “living wage” back in 2000 which was a welcomed step for city workers. The living wage seeks to provide a modicum of help in this resort and tourist community. With lots of service staff needed to support tourism, businesses do not welcome this in face of an uncertain economy.

Locally in Santa Cruz, California some businesses typically offer more than minimum wage, especially when there are few workers. The California Budget Project estimated that it takes and income of more than $13.00 per hour to cover basic expenses of living in California. The high cost of real estate in many areas necessitates high rents to make the investment pay. In a university town, there are plenty of college students who will welcome this increase. If you are thinking of low cost options for living in Santa Cruz, do a search of homes or investment properties that are now low priced. With interest rates going down, the time to act is at hand.

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