Schwarzenegger Proposes Dollar Hike In Minimum Wage

Sacramento, CA -- Governor Schwarzenegger is expected to propose a one dollar increase in the state's minimum wage, after vetoing similar legislature this year.

The move is a further indication that the governor is cultivating a more moderate image as he begins his re-election year.

An aide to the governor says the proposal will be included in Schwarzenegger's State of the State speech on Thursday.

Under the plan, the hourly wage would rise from the current rate of $6.75 to $7.25 in September. It would go up again in July 2007 to $7.75 cents.

In September, the governor vetoed a bill with those same wage increases that would have also required automatic annual hikes to keep pace with inflation.

The governor's proposal does not include an automatic yearly increase. California's minimum wage was last increased in 2002, when it rose by 50 cents an hour. The federal minimum wage is $5.15 per hour.

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