University to decrease jobs after state increases minimum wage

Caleb Bonham
Editor-in-chief

Total Shares
This is the CRO SBAR

  • Michigan's new minimum wage will cost Saginaw Valley State University $760,000 annually by 2018.
  • Central Michigan University is prepping for roughly $691,000 in increased wages for student hires.
  • The Workforce Opportunity Wage Act will expand the state's minimum wage to $9.25 an hour.
  • Saginaw Valley State University (SVSU) is anticipating major cuts in student employment opportunities after budgeting for state mandated increases in Michigan’s minimum wage.

    In an interview with The Valley Vanguard, Jim Muladore, SVSU executive vice president of administration and business affairs, estimated that Michigan’s minimum wage increase will cost the university approximately $760,000 annually by 2018.

    "[D]epartments will likely be pressed to hire less students or decrease the amount of hours student employees are able to work."   

    The problem is that the university, which is facing depressed fall enrollment numbers and diminishing housing and dining revenue, cannot fund these additional costs within departments.

    “In order to maintain their budgets, departments will likely be pressed to hire less students or decrease the amount of hours student employees are able to work,” the Vanguard reports.

    However, Saginaw Valley State University is not the only Michigan university amending their budget.

    Central Michigan University (CMU), the fifth largest university in the state, is preparing departments for a $691,000 wage increase for the anticipated 5,400 student hires.

    The Workforce Opportunity Wage Act, signed into law by Governor Rick Snyder (R), ties minimum wage to inflation, mandating an increase from $8.15 on September 1, 2014, to $9.25 per hour come January 1, 2018.

    Saginaw Valley State University, which reportedly hires 800 on-campus student employees during the fall and winter semesters, did not respond to requests for comment in time for publication.

    Follow the author of this article on Twitter @CalebBonham

    Caleb Bonham

    Caleb Bonham

    Editor-in-chief

    Caleb Bonham is the editor-in-chief of Campus Reform.

    A graduate of Colorado State University, Caleb is a frequent guest on the Fox News Channel and host of the award nominated YouTube series The Caleb Bonham Show.

    More By Caleb Bonham

    LATEST TWEETS

    Taylor
    @BridgerCO - 6 hours ago

    College professor uses English class to push global warming, attack Koch brothers http://t.co/LbrdUoTu0u via @campusreform

    David J. Hacker
    @davidjhacker - 6 hours ago

    ADF has had record year in protecting religious freedom nationwide http://t.co/xXDWup3bNG via @campusreform

    Room 101
    @suscitate - 8 hours ago

    Exclusive: Ohio State core class teaches Christians are dumber than atheists http://t.co/h67T85Fikz via @campusreform No bias here! #tcot

    Polar Dude
    @IamPolarDude - 8 hours ago

    That's funny because the United Negro College Fund Scholarships are also MERIT based. Are they racists too? @nutjob @campusreform

    cupcake4120
    @cupcake4120 - 8 hours ago

    @nutjob @campusreform . I hope that means self defense, with and without weapons.

    Freddy Boisseau
    @fboisseau - 9 hours ago

    Dept. of Education investigating Florida scholarship program over concerns of racist requirements http://t.co/I6GZninQt4 via @campusreform

    Lauren Cooley
    @laurenacooley - 9 hours ago

    My latest: Dept of Education investigating #Florida Bright Futures scholarship over concerns of racism http://t.co/D2n81svnXp @campusreform

    Latest 30 Articles