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Michigan’s Snyder signs bill raising minimum wage

By WTOP Staff

EMMA FIDEL
Associated Press

LANSING, Mich. (AP) — Michigan Gov. Rick Snyder signed legislation Tuesday to raise the state’s minimum wage by 25 percent gradually over the next four years to $9.25 an hour, as Republicans controlling the state government moved to head off a November ballot measure that could have raised pay even more.

The House and Senate passed the bill Tuesday, one day before a group of labor and community organizers planned to submit hundreds of thousands of petition signatures calling for a Michigan ballot initiative to raise the minimum wage to $10.10 an hour.

The current hourly minimum wage is $7.40.

The higher rate is supported by President Barack Obama and national Democrats, who have made the minimum wage a signature issue this election year. Snyder is up for re-election this year, as are many Michigan state legislators.

Michigan is the first state with a Republican-led legislature to raise its minimum wage this year, according to the National Conference of State Legislatures. Connecticut, Delaware, Hawaii, Maryland, Minnesota and West Virginia have raised their minimum wages, as well as the District of Columbia. Vermont’s legislature has passed an increase but it has yet to be signed by the governor.

“This was a great exercise in bipartisanship and both chambers working together in close partnership, coming up with an agreement and executing on that,” Snyder said. “It’s good for the hard-working people of Michigan.”

The Michigan Restaurant Association, National Federation of Independent Business and other business groups have said a wage increase would cut into businesses’ profits, which could cause closures and layoffs. The Republican governor said the measure is “economically sound.”

Senate Majority Leader Randy Richardville, R-Monroe, said he introduced the bill to repeal and replace the law that the ballot initiative aims to amend. It is unclear if the new law could prevent the $10.10 measure from appearing on the November ballot.

“We’ll just have to see how that process flows,” Snyder said when asked by The Associated Press.

The Michigan House voted 76-34 and the Senate 24-12 for the bill. Roughly half the Republicans in the Legislature voted for it, along with most Democrats. Some Democrats said they voted no because the bill silences voters who signed the wage petition.

Richardville said “everybody gave a little and everybody got a little.” It was a difficult compromise for many in both parties to support, Rep. Jeff Farrington, R-Utica, said.

“I’m going to do this with a heavy heart because I don’t believe government has a place adjusting wage in our society,” Rep. Peter Pettalia, R-Presque Isle, said. “I step up and support this bill because the alternative is terrible. The proposals that are in front of us outside of Senate Bill 934 will lose many more jobs in northern Michigan.”

The legislation includes a provision requiring the minimum wage to grow annually with inflation by up to 3.5 percent starting in 2019. It also would increase the wage for workers who get tips to 38 percent of the minimum wage, from $2.65 currently, to $3.52.

Senate Minority Leader Gretchen Whitmer, D-East Lansing, and House Minority Leader Tim Greimel, D-Auburn Hills, said the ballot drive led to the legislative action.

“We know this is the only Republican conservative Legislature to consider an increase in the minimum wage, and that’s a direct result of our work on the campaign,” said Danielle Atkinson, a representative for Raise Michigan, which is leading the ballot drive.

Raise Michigan will still turn in signatures Wednesday because organizers feel an obligation to roughly 300,000 people who signed the petition, Atkinson said. The issue could end up in courts because Michigan is in “uncharted territory,” she said, contending she has never seen a legislature repeal a law about which citizens are petitioning the government.

Raising the minimum wage was set to be a hot topic in Snyder’s race against Democratic governor candidate Mark Schauer. The bill is very similar to Schauers’ proposal from November to raise the wage to $9.25 over three years and tie it to inflation.

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Associated Press correspondent David Eggert contributed to this report.

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Online:

Legislation: http://1.usa.gov/1kI45nx

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Follow Emma Fidel on Twitter at http://twitter.com/emmafidel

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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