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.