Date: February 5, 2025
To: Rep. David Casteel, Chair, and members of the Commerce Committee
From: Lucas Caldwell-McMillan, Chief of Policy Staff, Empower Missouri
Re: Our opposition to HB 758 and 958
Empower Missouri has spent more than 120 years fighting poverty in Missouri. Today, we come to present testimony on bills which specifically targets our neighbors with the lowest incomes. On behalf of our staff, board, and coalition members we are asking you to oppose HB 758 & 958.
Increasing the minimum wage lifts families out of poverty and helps all Missourians afford a stable place to live and put healthy food on their tables. Twelve percent of Missourians live below the federal poverty line. In real numbers, that’s over 720,000 of our neighbors who are deeply struggling to make ends meet every single day. Over 120,000 Missourians are currently unable to secure affordable housing in our state and one in five Missouri children face hunger. A 2016 study by The Century Foundation found that increasing the minimum wage significantly improves food security. It also found that an increase in the minimum wage enables households to worry less about meeting their food needs, to maintain a supply of food, to reduce their reliance on low-cost food, and to afford more balanced meals. Families struggling with food insecurity often end up eating cheaper, lower quality, more processed foods. This type of diet can lead to serious medical conditions such as diabetes and cardiovascular disease. Therefore, increasing the minimum wage not only reduces hunger across the state, but will reduce state-funded medical costs as well.
In November 2024, just 3 months ago, Missouri voters decidedly voted in favor of Proposition A to increase the minimum wage, index the minimum wage to inflation, and provide sick leave. To make these significant changes to voter approved language so close to the election is undemocratic and undermines the will of the people.
HB 758 removes the provision that ties future minimum wage increases to the Consumer Price Index. Automatic adjustments for inflation ensures the impact of the policy in the long term. Missouri voters last passed a minimum wage increase in 2018. Since then, the Federal Poverty Limit for a household of four has gone from $25,100 in 2018 to $31,200 in 2024, a twenty-four percent increase. It is critical that we raise and index minimum wage to keep pace with inflation over time.
We respectfully ask this committee to vote against passing HB 758 & 958.
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