Frequently Asked Questions About the Asheville Buncombe Living Wage Campaign What is a Living Wage? Unlike the Minimum Wage ($6.15 an hour in NC), a Living Wage is based on information about what it actually costs to afford basic necessities in a particular area. What is the basis for Asheville’s Living Wage? The Asheville Buncombe Living Wage Campaign chose to base Asheville’s Living Wage on the cost of housing. It is generally understood that when individuals and families spend more than 30% of their income on housing, it becomes difficult to remain economically self-sufficient. What is the Asheville Living Wage? Asheville’s Living Wage is $10.86 without employer provided health insurance and $9.50 with employer provided health insurance. $10.86 is based on the Fair Market Rent (a figure from the Department of Housing and Urban Development) which assesses the rental cost for “modest non-luxury” apartments in a given area. Using the Fair Market Rent, $10.86/hour would allow an individual to afford a one bedroom apartment in Asheville. Obviously, families with dependents would require a significantly higher income. After a survey of actual listings, we found that $10.86/hour would allow an individual to rent approximately 15% of one bedroom apartments in Asheville. Why should we have a 2nd number that factors in health care benefits? The $9.50 wage level simply acknowledges the high cost for employers choosing to provide health care benefits for employees. This is a valuable and increasingly unavailable benefit for workers. Who would be affected by an Asheville Living Wage ordinance? Of the over 140 Living Wage Ordinances around the country, most apply to local government employees and businesses that contract with local government. However, our proposal will only affect permanent city employees. At present, we are pleased to report that all Asheville City employees are already getting paid a Living Wage. Therefore, this will NOT change Asheville’s present budget. We are asking that the City of Asheville to adjust the Living Wage on an annual basis using the Consumer Price Index. While our proposed ordinance will not require contracting businesses to pay the Living Wage, we are asking that this information be included in the City’s contract bidding process. Will the Living Wage Ordinance hurt small businesses? No. A Living Wage Ordinance will NOT require local businesses to increase their wages. Participation will be completely voluntary. That said, research on Living Wage ordinances suggest that paying a Living Wage increases worker productivity, lowers employee turnover and puts more money into the local economy. In addition to creating a community in which employees can live in the communities they serve without relying on government subsidies, it’s good business. The campaign is also looking for ways to acknowledge and encourage Living Wage Businesses. We know that employers who pay a living wage are taking on additional expenses. The Campaign’s Living Wage Business Certification Program will publicly acknowledge these employers and invite consumers to support them. This, in turn, will lead to increased revenue. Revised 5/2/07