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<br /> <br />The Effects of a $15 Minimum Wage by 2019 in Santa Clara County and San Jose 14 <br /> <br />2. THE MINIMUM WAGE INCREASE SCHEDULES <br />Both of the scenarios considered in this report would phase in minimum wage increases over <br />three years, starting with $12 an hour in 2017 and reaching $15 an hour in 2019. In Scenario A, <br />this minimum wage schedule is adopted in San Jose. In Scenario B, this minimum wage schedule <br />is adopte throughout Santa Clara County, including San Jose. Tables 1 and 2 compare these two <br />minimum wage scenarios to the “baseline” schedules currently in effect (as of March 1, 2016). <br />In the impact analyses that follow, our logic will be to estimate the effects of Scenario A and B, <br />relative to their respective baseline schedules. (Our analysis does not take into account the <br />recent state minimum wage increase signed into law in April 2016). <br />Table 1. San Jose Minimum Wage Schedule: Scenario A <br /> 2017 2018 2019 <br />Baseline schedule* $10.53 $10.76 $11.00 <br />Scenario schedule $12.00 $13.50 $15.00 <br />* Based on San Jose’s minimum wage schedule as of March 1, 2016. It does not take into account the state minimum wage <br />increase enacted on April 4, 2016. San Jose’s minimum wage was indexed to the U.S. All Cities CPI-W. We estimate each year’s <br />minimum wage using the average annual increase in the CPI-W over the past 10 years. <br /> <br />Table 2. Santa Clara County Minimum Wage Schedule: Scenario B <br /> 2015 workforce 2017 2018 2019 <br />Baseline schedules <br />San Jose & Sunnyvale 431,000 $10.53* $10.76* $11.00* <br />Palo Alto & Santa Clara <br />City 211,000 $11.25* $11.50* $11.75* <br />Mountain View 84,000 $13.00 $15.00 $15.37* <br />Rest of Santa Clara <br />County (state schedule) 180,000 $10.00 $10.00 $10.00 <br />Scenario schedule <br />Santa Clara County <br />(except Mountain View) 906,000 $12.00 $13.50 $15.00 <br />Note: The baselines for these schedules were in effect as of March 1, 2016. Proposals being considered by individual cities were <br />not used. We do not take into account the state minimum wage increase enacted on April 4, 2016. <br />* Where minimum wages are scheduled to increase according to CPI, we estimate the increase using the average annual CPI <br />increase over the past 10 years. Mountain View’s minimum wage is indexed to the San Francisco CMSA CPI-W. All other cities <br />are indexed to the U.S. All Cities CPI-W. <br />8.A. - Page 28