Ballot Questions on Veterans Groups' Revenue and Minimum Wage

Questions about whether veterans' groups should be allowed to keep revenue from games of chance and whether the minimum wage should be raised are on Tuesday's general election ballot.

The first question, which has attracted the least amount of media and political attention, asks: "Do you approve amending the Constitution to allow veterans’ organizations to use money collected from existing games of chance to support their organizations?"

The interpretive statement on the ballot states: "This amendment to the Constitution would allow veterans’ organizations to use the money collected from existing games of chance (such as bingo, lotto or raffles) to support their organizations.

"At present, the Constitution allows this money to be used only for educational, charitable, patriotic, religious or public-spirited purposes. Currently, only senior citizen groups may use the money they collect from existing games of chance to support their groups." 

The League of Women Voters of NJ provides background on why this question is surfacing as a public referendum and what the most common arguments are both for and against.

Background from the League:

"Voters of the State of New Jersey must authorize specific kinds of gambling and the restrictions on each kind. Veterans’ groups; charitable, educational, religious or fraternal organizations; civic and service clubs; senior citizen associations or clubs; volunteer fire companies; and first-aid or rescue squads are currently authorized to conduct games of chance such as bingos, lottos, or raffles.

However, only senior citizens associations or clubs are allowed to apply the money raised from gambling activities directly to support their organizations. The remaining groups listed above, including veterans’ groups, are restricted to using any funds raised in games of chance for some socially beneficial purposes, such as to support educational, patriotic, or charitable activities.  

For example, a veterans' group could conduct a bingo event to help fund a clinic for disabled veterans, or a 50-50 raffle from which the proceeds would be used to upgrade the lighting in a local park. But they could not use any of the money gained to pay the cost of utilities or the rent in the building where they meet, or other purely organizational expenses.  

If approved, the amendment would allow veterans' groups to use the money raised from games of chance to support their organizational expenses, in addition to the educational, charitable, patriotic, religious or public-spirited purposes already permitted.  

Reasons to Vote Yes:
  • Veterans' groups perform a valuable service. This amendment provides them with an additional source of revenue to support their organizations. 
• Some veterans' groups might not be able to continue serving their members without this additional source of revenue to cover increasing expenses such as rent and utilities.  

Reasons to Vote No:  
• There are many worthwhile organizations other than veterans' and senior citizen groups. This amendment provides veterans' groups with an option not available to some other groups.
• There are serious downsides to gambling, including addiction. Veterans' organizations could find less socially-risky sources to procure additional funds."

Question about Raising Minimum Wage to $8.25 Per Hour

The second question asks: "Do you approve amending the State Constitution to set a state minimum wage rate of at least $8.25 per hour? The amendment also requires annual increases in that rate if there are annual increases in the cost of living."

The interpretative statement on the ballot says: "This amendment to the state Constitution sets the State minimum wage at the level in effect under current law, or $8.25 per hour, whichever is more.

Cost of living increases would be added each year. Also, if the federal minimum wage rate is raised above the state rate, the state rate would be raised to match the federal rate. Future cost of living increases then would be added to that raised rate."

The League's background information states: "The minimum wage for hourly workers in New Jersey is $7.25, where it has been since 2010, at which time it was raised 10 cents from the $7.15 it had been since 2007.

If this ballot question is approved, there will be an amendment to Article I of the New Jersey State Constitution, which will place the minimum hourly wage in the constitution and set it at $8.25 per hour on January 1, 2014 and tie future annual increases to the U. S. Consumer Price Index (CPI) every January 1.

There are conflicting views on the impact. The New Jersey Minimum Wage Advisory Commission in January 2012 recommended keeping the minimum wage at $7.25. They said raising it could put New Jersey at a competitive disadvantage to neighboring states that have not raised it and argued that 'higher wage costs would have to be passed on to consumers.' 

Others argue that increasing the minimum wage encourages consumer spending because minimum wage workers will spend their increased income locally and on necessities.

According to the Federal Reserve Bank of Chicago, a $1.75 hike in the hourly federal minimum wage could increase the level of real gross domestic product by up to 0.3 percentage points in the near term, but with virtually no effect in the long term.  

There are 129,000 New Jersey residents earning the minimum wage or less. According to the Bureau of Labor Statistics, three quarters of minimum wage earners are 20 or older.

Eighteen states and the District of Columbia have minimum wages that exceed the federal standard ($7.25 per hour). The state of New York recently passed legislation to increase minimum wage from $7.25 to $9.00 per hour over three years and Connecticut will raise the current minimum wage of $8.25 to $9.00 per hour by 2015. 

The proposed amendment does not cover employees who rely primarily on tips. Their minimum wage will remain at $2.13 per hour, based on the national Fair Labor Standards Act.

REASONS TO VOTE YES:
 • The current minimum wage has not kept up with inflation and is not sufficient to sustain a family. Adjusted for inflation, New Jersey’s current minimum wage is lower than it was in 1967.
 • Increasing the purchasing power of low wage workers could benefit the economy as well as the workers directly affected.
 • Better paid workers may be more productive, and more loyal, sparing companies the expense of training new workers when old ones leave.
 • If workers are being paid too little to support themselves, this raises issues of basic fairness.
 • Tying the minimum wage to the consumer price index and building it into the constitution ensures that workers will have a minimum wage level that keeps up with inflation and avoids having to fight a battle over the minimum every few years.  

REASONS TO VOTE NO:
 • Tying the minimum wage (and annual increases) to the NJ State Constitution will make it less flexible and more difficult to change, should the need arise.
 • Increasing the minimum wage might reduce the number of available jobs and/or increase the cost of products and services.
 • Small employers may have an especially difficult time paying a higher rate.
 • If increasing the minimum wage is beneficial to companies through reduced turnover and more productive workers (as some argue), then wages should rise by way of market forces without a government mandate.
 • Some workers have been pressing for a minimum wage of $10 or higher -- if that was an appropriate level, then constitutionally fixing the rate at an inflation-adjusted $8.25 ties New Jersey to an inadequate minimum for a long time."

How are you voting on these two questions? What are your thoughts? Please let us know in Comments below. Thank you.