Correction: The state’s minimum wage would be increased under a proposed initiated act backed by the Arkansas Interfaith Alliance and Give Arkansas a Raise Now. This article was unclear at one point about the type of ballot measure it is.
With a week left to gather additional signatures, supporters of a ballot initiative to increase the Arkansas minimum wage have received just shy of half a million dollars to fund their campaign.
Two groups pushing the measure, which would increase the state's minimum wage in three intervals from the current $6.25 an hour to $8.50 an hour in 2017, had received a little more than $460,000 in contributions as of July 1. Nearly half of that money came from labor unions or employee associations, and nearly all of the money spent has gone to pay canvassers and consultants, according to those reports.
"I was very pleased at the level of contributions given especially because of the importance so many people hold to this issue and trying to get this passed," said Stephen Copley, the head of both groups supporting the minimum wage amendment -- the Arkansas Interfaith Alliance and Give Arkansas a Raise Now.
Supporters registered the two groups as ballot initiative committees with The Arkansas Ethics Commission earlier this year.
Copley, the Alliance's executive director, said the group supports social issues that reflect its members' spiritual values. He said the alliance is registered as a 501(c)(4) tax-exempt group, which makes it easier for some unions or trade groups to contribute to the campaign because of their internal rules on political giving.
The secretary of state's office said late last month that the groups had submitted enough valid signatures to clear the first hurdle, but needed more to qualify for the ballot. They were given 30 days -- until 5 p.m. Aug. 18 -- to submit an additional 15,107 valid signatures to reach the 62,507 signatures required by law.
As of Friday, no opposition group had registered with the Arkansas Ethics Commission to fight the proposal. But representatives of the state's business community said an organized "vote no" campaign could be launched if the measure makes the ballot.
Randy Zook, president and chief executive officer of the Arkansas State Chamber of Commerce, said chamber members have been mostly quiet on the issue.
"The reality is it applies to such a small segment of our economy that we really haven't had much pressure from businesses to oppose it," he said. "I'm hard-pressed to figure out where an organized opposition would come from. That's not a signal that nobody cares about it, but I think the focus is what the feds are going to do rather than the state."
Arkansas is one of a handful of states with minimum wages lower than the federal rate of $7.25 an hour. President Barack Obama has been talking since his State of The Union address about raising that federal wage to $10.10 an hour, which has garnered stronger opposition than the state proposal.
Officials at the Arkansas Hospitality Association said some of its members, including rural, family-owned businesses, would face hardship if the increase passes. But Executive Director Montine McNulty said she also hasn't heard requests from her membership that the association come out in opposition.
"We don't have a lot of members that we know of that fall under the Arkansas minimum wage [law]," she said, explaining that they fall under the federal law. "We are waiting to see whether it will be on the ballot. I think like a lot of businesses are waiting to see."
If organized opposition to the measure does form, the group will be close to $500,000 behind in funding.
The Arkansas Interfaith Alliance had received $449,815 in 49 separate contributions as of the last finance report filed July 14, which covered contributions and expenses through June 30. The largest portion of the contributions came from labor unions, which gave $195,500 to the campaign.
"This is an issue that folks in labor would support," Copley said. "I wasn't surprised [to receive those contributions]. In other states that have tried to raise the minimum wage, the unions have been very active."
Political Action Committees and groups such as the National Education Association gave about $135,000. Little Rock lobbying and political consulting groups contributed about $7,000 along with a $20,000 donation from the Democratic Party of Arkansas.
Several Arkansas-based manufacturing or other small businesses also contributed to the campaign, including a hefty $20,000 contribution from Cabot-based manufacturer Pinnacle Structures Inc. and a $15,000 contribution from Little Rock development group 1 Pershing Circle, LLC. In all, a little less than $90,000 came from in-state contributions.
The alliance reported spending $446,925, all at the Markham Group consulting firm, which hired and paid canvassers to collect signatures.
The second group, Give Arkansas a Raise Now, received four contributions totaling $10,251.84. The group reported spending $7,818 on consulting fees, website design and advertising.
Metro on 08/11/2014