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Request for Committee Action

A briefing memo explaining the purpose, background, and impact of the requested action.
Update on the City’s Minimum Wage Economic Impact Report (RCA-2019-00967)

City Coordinator's Office
To Committee(s)
# Committee Name Meeting Date
1 Enterprise Committee Sep 19, 2019
Lead Staff:
Jeff Schneider
Presented By:
Jeff Schneider with representatives from the Minneapolis Federal Reserve Bank
Action Item(s)
# File Type Subcategory Item Description
1 Receive & File Report

Receiving and filing a status report on the Minimum Wage Economic Impact Study by the Federal Reserve Bank.

Ward / Neighborhood / Address
# Ward Neighborhood Address
1. All Wards Room 301M 350 South Fifth Street
Background Analysis

The City’s 2017 minimum wage ordinance directed the City Coordinator’s Office to report back on the economic impacts of the ordinance annually, beginning in 2019. Following an RFP process, the Coordinator’s Office contracted with the Minneapolis Federal Reserve Bank to undertake this study for the first three years of the ordinance’s phase in period (2018 – 2020) plus a “baseline” report that was presented to the Council in September, 2018. The original schedule for first four reports was as follows:

      Baseline Report [2014-2017] September, 2018

      Year 1 [2018] impact report October, 2019 March 31, 2020

      Year 2 [2019] impact report October, 2020

      Year 3 [2020] impact report October, 2021

      The impact analysis covering the remaining 4 years of the ordinance’s phase-in period will be contracted for separately, either by extending the existing contract              with the Bank, or via a new RFP.

The Bank’s study proposal assumed access to certain state administrative data, which is typical of other minimum wage studies throughout the country. The research team’s access to this data has been delayed somewhat due to the complexities of negotiating appropriate data sharing agreements, which required passage of special legislation this past session to enable the MN Department of Revenue to share certain data with the Bank subject to conditions. As a result, the Bank has requested and the City has agreed to a six month extension of the Year 1 [2018] impact report to March 31, 2020. Future years’ reports will remain on the original schedule. In an unrelated development, the City of St Paul has requested that the Bank undertake a parallel study of their minimum wage ordinance, which does not begin its phase in until 2020.  The purpose of today’s informal status report by the Bank’s research team is to update the Council about the status of the project and to review the Study goals, design and topics that will be reported on next spring.  

  • No fiscal impact anticipated