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Grand Canyon Institute analysis of Glendale's Prop. 499 finds costs will go up for consumers

Afternoon view of the downtown public City Hall and Civic Center of Glendale, Arizona
Getty Images
A view of the downtown public City Hall and Civic Center of Glendale, Arizona.

The research director of a local nonpartisan think tank says it did a free economic analysis of a ballot proposal to raise the minimum wage for certain hospitality workers in Glendale.

The review by the Grand Canyon Institute comes as the city’s mayor reminds voters that Proposition 499 wasn’t his idea or the City Council’s.

Prop. 499 would add pay-and-benefit protections for hotel and event-center staff to Glendale’s city code.

If voters approve the measure, costs will go up a little for consumers and hotels, which could also lead to a small dip in room occupancy, according to Dave Wells, research director at GCI.

“What that boils down to is effectively that their gross profits will diminish by 1.9%,” Wells said.

Glendale officials at first declared the measure unconstitutional, but were forced by the courts to put it on the ballot.

In a statement, Mayor Jerry Weiers said Prop. 499 gives the city no way to pay for a labor department that voters may establish.

Wells said if the measure is approved, hotel and event center workers in Glendale will see an average pay increase of 22%.

“Income inequality has been a serious problem. And it’s something that this kind of measure and other ones are designed to try to address,” Wells said

He also said up to 5.5% of hotel and event center workers in Glendale could lose their jobs or see their hours cut, if Prop 499 passes.

Matthew Casey has won Edward R. Murrow awards for hard news and sports reporting since he joined KJZZ as a senior field correspondent in 2015.