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.

    Named a "30 Under 30," Caleb is a frequent guest on the Fox News Channel and host of the award nominated YouTube series, The Caleb Bonham Show. Caleb's work has been featured in Time Magazine, The New York Times, The Washington Post, Associated Press, MSNBC and TheBlaze.

    More By Caleb Bonham

    LATEST TWEETS

    debra steinman
    @debraraes - 25 min ago

    Military group to sue university over prayer at 9/11 memorial service http://t.co/XeZVRpfQn0 via @campusreform #ccot

    Libusters
    @bob4gov_now - 28 min ago

    Hispanic student group protests sorority house for 'culturally insensitive costumes' http://t.co/pKotb9ghHf via @campusreform #Libusters

    caitlin streit
    @caitlinstreit1 - 29 min ago

    Military group to sue university over prayer at 9/11 memorial service http://t.co/6y6fkijJAT via @campusreform

    joe bendix
    @joebendix - 30 min ago

    Professor screens anti-Koch Brothers film, says success is about race #KochBrothers #Equality http://t.co/vBckMNe3Fn via @campusreform

    ConservativeArticles
    @ArticlesConserv - 2 hours ago

    Liberals organize 'Sh*t-In,' 'Gender Inclusive Bathroom Challenge' #yeswedid #tcot #ccot http://t.co/gBXeII4WEe via @campusreform

    I'm ur huckleberry
    @jeanniemcbride - 2 hours ago

    Students organize 'Sh*t-In,' 'Gender Inclusive Bathroom Challenge' http://t.co/hl2lsXyOuX via @campusreform

    David Kimsey
    @Ranger9Ga - 2 hours ago

    @MaggieLitCRO @campusreform Was there a complaint or notification. From Article 'Don't have a Prayer to Stand On' Student Led!

    drvicki_dc
    @drvicki_dc - 2 hours ago

    @CalebBonham @campusreform they forget that this country was founded on Christian beliefs, don't have 2 like it but they need to accept it.

    drvicki_dc
    @drvicki_dc - 2 hours ago

    @CalebBonham @campusreform yes, for people that don't believe they sure spend an inordinate amount of time demanding that no one else should

    Latest 30 Articles