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Controller and working group urge funding to address nonprofit wage compression; labor and providers press for full allocation
Summary
Controller Ben Rosenfield summarized a working‑group report on the Minimum Compensation Ordinance (MCO), estimating direct city‑contract costs and larger wage‑compaction and equity pressures; labor and nonprofit speakers urged full funding (working‑group and sector figures cited in testimony ranged up to ~$27M) to offset turnover and recruitment shortfalls.
City Controller Ben Rosenfield told the Budget and Finance Committee that the Minimum Compensation Ordinance (MCO) increase for nonprofit contractors will raise the city‑contracted wage floor to $16.50 on July 1, contingent on budget appropriation, and thereafter index the floor by CPI.
Rosenfield reviewed earlier Controller Office sampling of 42 nonprofit organizations and described the working group (city staff, labor and nonprofit representatives) convened to study direct costs, wage compaction up the pay scale and equity pressures for workers funded by non‑city contracts. The working group reported a set of findings and recommended a centralized…
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