M I N I M U M WAG E
Equity in wages was a concern for multiple departments described below. As we readjust to the future of our industry, we will need to keep wage equity a priority when rebuilding our departments and structure.
Changing Fees to Manage Budgets in Oregon In 2015, the Tualatin Hills Park and Recreation District in Oregon was facing a minimum wage increase from $12 to $15 an hour, resulting in a budget impact of $500,000 to $2.7 million, depending on which rate garnered approval. The lower rate and budget impact would result in minimal changes to the department’s rate chart, while the higher number resulted in a more drastic adjustment.
The Rockford Park District in Illinois was expecting an increase of the minimum wage to $10, resulting in a budgetary impact of $1 million. Eligible employees were split between two groups, with program supervisors making up 85 percent of the workforce and maintenance workers comprising the remaining 15 percent. The district managed this by adjusting fees to cover 75 percent of program costs and cutting back on their number of offerings to offset the budget impact. At the time, the district had around 3,000 offerings per year and no tax increase had been discussed. But, due to a $100 million bond measure that passed in 2008 and a subsequent climate poll, it was determined that the public was favorable to the option. Aisha Panas, director of park and recreation services, along with her 46 Parks & Recreation
Tualatin colleagues, Keith Hobson and Katherine Stokke, provided an update from 2015 and offered insight on how the district was handling a law passed in 2016 that would increase the minimum wage to $14.75 by 2022 with annual adjustments following based on the U.S. Bureau of Labor Statistics’ Consumer Price Index, with Portland, Oregon, metropolitan area coming in $1.25 higher than the other areas in the state. To address these increases, staff have been provided with augmented expenditure targets of 2.5 percent to 3 percent a year to pay applicable positions the minimum wage. This includes updating their class fee structure using a cost recovery model. Panas reports this approach has been successful and the restructuring of fees has resulted in minimal impact on operations. Next steps include addressing compression, which results when differences in pay do not reflect the skills, experience, level or seniority between two employees, along with the next group of employees impacted, which includes lifeguards and other certified staff.
Maintaining Balance in Illinois In the Midwest, the McHenry County Conservation District in Woodstock, Illinois, was already preparing for the 2015 increase by implementing merit raises — so, at most, the 2015 increase would amount to a $1.50 raise, bringing the minimum wage up to $10 per hour. Although the district had planned for an increase, adjustments still would be needed. Human Resources Manager Jenny Heider predicted a hiring freeze, minor cuts to seasonal staff and deferred maintenance resulting in an impact to programs and park appearance. In a follow-up interview with Heider in 2020, she re-
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ported that managers were able to find room in their budgets so staff would not need to be reduced nor fees raised. Heider attributed this success to her agency’s yearly merit increases, which meant that when the minimum wage was increased, it didn’t have a negative impact and adjustments were made without a loss in service. She reported they have since increased their minimum wage to $11 per hour. In response to a new Illinois law raising the minimum wage to $15 an hour by 2024, they plan to continue to implement incremental raises along the way to reach this goal. At this time, an increase to taxes is not an option, so funds must be made up operationally. The Rockford Park District in Illinois was expecting an increase of the minimum wage to $10, resulting in a budgetary impact of $1 million. To offset this cost, Director Jay Sandine predicted an increase in program fees along with a reduction in programs, services and staffing. Already impacted by the Great Recession, Sandine voiced concern over the impending change, as his community was struggling financially and the loss of jobs and quality-of-life services would only signal further hardship. Following up with Sandine in 2020, I learned the past five years have resulted in many changes for the Rockford Park District. The district has cut staff, closed facilities and reduced the number of programs it offers. With the new Illinois minimum wage law set to have a $2 million impact on his budget over the next four years and nowhere else to scale back, Sandine and his team have been looking for other areas to adjust and alternative sources of funding. One adjustment has been to his Parks Foundation, which in the past used money for capital cost and
