The city of Portland is considering a proposal that would gradually raise the minimum wage to $20 an hour.
Portland's current minimum wage is $15.50 an hour. Proponents of the increase stressed that wages will go up over the course of three years, not all at once.
At a public hearing Tuesday night, some business owners said they'll consider relocating to another nearby town if the increase is approved. Several business owners said they would raise their prices to offset increasing labor costs.
"There's a limit to how much somebody will pay for a bowl of chowder and a beer," said Steve DiMillo of DiMillo's on the Water. "If we do less business, it correlates to [fewer] hours and [fewer] payroll dollars for the affected staff."
But others, including Portland resident Sophia Thomas, said increasing the minimum wage would mean that workers like her have more disposable income to spend at local businesses, rather than using an entire paycheck on groceries and rent.
"I am really curious if the local businesses that have spoken so far tonight are planning to get all of their customers from cruise ships and people visiting from out of state, because that's how things are going to end up if the city does not continue to raise our wages," Thomas said.
Portland's housing and economic development committee considered a similar minimum wage increase last summer.
The proposal faces additional votes within the committee, which could recommend that the full city council send the measure to an upcoming ballot for approval by the voters, or adopt it outright.
City Councilor Kate Sykes said the measure is intended to ensure that workers can live within Portland "with dignity."
"This issue comes down to a very simple question: Can people who work full time in Portland afford to live in Portland?" she said. "Right now for far too many, the answer is no."
Close to half of renters in Portland spent anywhere from 30% to 50% of their income on rent in 2022, according to Census data compiled by the consultant HR&A, which has conducted housing needs assessments for both the state of Maine and the city of Portland.
