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Seattle aims to lead nation to $15 minimum wage

By WTOP Staff

MANUEL VALDES
Associated Press

SEATTLE (AP) — They’ve crowded into stuffy rallies at a Seattle union hall, protested in front of fast food restaurants, marched down city streets and implored city leaders to demand an immediate $15 an hour minimum wage hike for all employees.

“We’re not patient!” a man shouted at a union hall rally, and the crowd cheered.

While the Seattle mayor is proposing to raise the wage to $15 in the coming years to the highest level in the nation, some activists say that’s too slow and are threatening to take the issue to voters with a ballot measure that would force a raise sooner.

Accounting for inflation, “even in 10 years’ time, workers still won’t be at 15,” said Kshama Sawant, the socialist City Council member and a leader of the group 15 Now.

As the plan is being debated by the council, businesses are sounding the alarm that raising the wage too quickly could hurt their revenue and force them to hire fewer workers or let go of some employees.

Popular restaurateurs have emphatically argued for counting tips in total compensation.

Minority chambers of commerce have banded together to argue that a quick hike to $15 would kill their family-run businesses. Their argument: Who is going to hire immigrants learning English for $15 an hour?

OneSeattle, a group made up of small and medium-size employers with the backing of large business organizations like the Washington Restaurant Association, says it supports a wage hike, but with some key caveats.

The group wants a phase-in and a temporary training wage. It also wants health care, commissions, tips and bonuses to be counted in total wages.

Mayor Ed Murray presented his plan, forged from an agreement among labor, business and nonprofit representatives. The group crafted a plan that 21 of the 24 members agreed on. It created a unified front for Murray to present to the city.

Murray’s proposal gives businesses with more than 500 employees nationally at least three years to phase in the increase.

Those providing health insurance will have four years to complete the move. Smaller organizations will be given seven years, including a consideration for tips and health care costs over the first five years of the phase-in.

“If you leave the negotiating table with both sides being a little unhappy, you’ve got a pretty good deal because it’s sustainable,” David Freiboth of the King County Labor Council told City Council members, invoking an old labor saying.

Once the $15 wage is reached, future annual increases will be tied to the consumer price index.

“It’s the least offensive of the imperfect solutions,” said Bob Donegan, CEO of Ivar’s, a popular seafood restaurant in Seattle. Donegan opposed the successful $15 a ballot measure in neighboring city of SeaTac.

Cities and states nationwide have proposed raising minimum wages.

Last month, Minnesota raised the state’s guaranteed wage by more than $3, to $9.50, by 2016. California, Connecticut and Maryland have passed laws increasing their respective wages to $10 or more in coming years.

The current minimum wage in Washington state is $9.32 an hour.

Sawant’s group will attempt to plead its case to City Council members while gathering the 30,000 signatures needed to put the charter amendment on the ballot.

The group’s proposal would create an immediate wage hike for large businesses and a three-year phase-in for organizations with fewer than 250 full-time employees.

If 15 Now and Sawant go ahead with a ballot measure, business groups will likely file their own, said businessman Howard S. Wright III, who is the CEO of Seattle Hospitality Worldwide, an events management conglomerate

Seattle voters would then be faced with competing ballots.

Murray warned the two efforts would lead to a “mini version of class warfare.”

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Manuel Valdes can be reached at http://twitter.com/ByManuelValdes

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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