Santa Fe discussion centers on proposed living-wage increase to $17.50 with one-year delay

The Santa Fe governing body discussed a proposal to raise the city's living wage from $15 to $17.50 an hour and to delay implementation for one year so employers and the local economy can adjust.

The proposal, presented at a special study session by Rod Gould, senior adviser for public engagement, would also change the annual escalator for the living wage so future increases are based 50% on the Western regional consumer price index and 50% on HUD's fair market rent for a two-bedroom unit in Santa Fe, with a 5% annual cap and a 0% floor.

Why it matters: City staff and councilors said housing costs are a principal factor in who can live and work in Santa Fe; the proposal ties wage growth explicitly to a housing measure in an effort to keep long-term residents from being displaced.

Details of the proposal and background

Rod Gould said the draft would raise the living wage to $17.50 an hour and then hold that increase in abeyance for one year while the city assesses national and local economic conditions. Gould described the escalator change as a direct link between wages and rents: "by linking any increase to the fair market rent for a 2 bedroom rental, we are acknowledging the significance of rents in achieving our policy goal." He told the council the draft would retain existing carve-outs, such as current handling of tipped wages and exemptions for nonprofits highly dependent on Medicaid reimbursement.

The presentation included housing data from the Santa Fe Forward assessment: the city will…