On Monday, June 1, after a heated meeting, the Albuquerque City Council passed a heavily amended and scaled down ordinance that raises the city’s minimum wage from $12 to $15 over three years with future annual adjustments tied to inflation. The amended ordinance cut tipped workers’ percentage of the minimum from 60% to 50% and gave city workers, making less than $80,000 a year, the same percentage wage increase as the minimum in annual adjustments. City Councilors voted to approve the amended ordinance on a 5-4 vote which will raise the minimum wage to $13 in 2027 and thereafter an additional dollar every year until reaching $15 in 2029. Annual adjustments tied to inflation will begin in 2030.
The vote to approve the amended ordinance was strictly along party lines. Democrats City Council President Klarissa Peña and City Councilors Tammy Fiebelkorn, Joaquín Baca, Nichole Rogers and Stephanie Telles voted “YES” to adopt the amended ordinance. Voting “NO” were Republicans City Council Vice President Dan Champine, Brook Bassan, Dan Lewis and Renée Grout.
ORIGINAL ORDINANCE
The original ordinance as sponsored by Democrats Councilors Tammy Fiebelkorn, Joaquin Baca, Nichole Rogers and Stephanie Telles, would have raised the minimum wage to $15 an hour and $14 for employees who receive at least $2,500 in healthcare and/or childcare benefits. The original ordinance would have raised the pay of tipped employees to $9 an hour.
The original bill, like the one recently passed in Santa Fe, would implement annual cost of living adjustments tied to the Consumer Price Index and Fair Market Rent measured by the U.S. Department of Housing and Urban Development, for a two-bedroom home in Albuquerque.
The original ordinance states that the Fair Market Rate for a two-bedroom unit in Albuquerque increased 56% between 2021 and 2026, but the minimum wage has increased 26% in that same timeframe. Meanwhile, the 2024 Albuquerque Region Housing Needs Assessment found that 52% of all renters in Albuquerque are cost burdened paying more than 30% of their income on housing.
Had the original bill passed, both the wage increase and the cost of living adjustments would follow Santa Fe’s timeline on its $17 minimum wage, with the former starting in January and the latter in January 2028.
ECONOMIST CLAIMS INCREASES NOT EXESSIVE
Local economist Kelly O’Donnell said the increases were not excessive, but the annual adjustments could create uncertainty for businesses. O’Donnell, an economic consultant, said the proposed wage increases are reasonable and in line with the higher costs of goods and services. Kelly O’Donnell said this:
“It’s a meaningful increase that will make a very meaningful difference in the budgets of low-wage workers … but it’s not so high that it will have a really negative impact on employment.”
O’Donnell said recent large-scale studies, including one in the past few years, have found that “modest to moderate” wage increases do not kill jobs the way the business world sometimes suggests. She said while wage increases can lead to slightly slower job growth in certain sectors they often have “an immediate positive stimulus” on the local economy that benefits businesses and workers. O’Donnell said this:
“I think it will reduce turnover and will encourage folks to enter the workforce, so those are two big positives for business. The other thing is, it puts money in the pockets of workers who go out and spend their money at those businesses so that money will flow back to many of these businesses.”
O’Donnell said tying an annual cost of living increase to Fair Market Rent (FMR) is more unique and she could see how businesses would have mixed feelings about that aspect. She said the FMR’s “tend to be a little bit more volatile” than inflation, despite the former having gone up much faster than the latter in recent years.
O’Donnell said that while inflation is more steady and predictable in its movements, housing costs take “bigger swings” in some years and don’t change much at all in others. She said such a dynamic could lead to uncertainty for businesses, which often pay more attention to inflation. O’Donnell said this:
“I understand the motivation [for including Fair Market Rent], and it makes sense to me. On the other hand, I also understand why the business community might be a little uncomfortable with it. If you inject this higher, more volatile measure into how you’re calculating growth for your minimum wage, you inject a little bit more uncertainty, and I think that, if anything, one of the important roles of government is to help provide a level of certainty and continuity for the economy.”
MINIMUM WAGES ACROSS THE STATE
The most notable minimum wages across the state are:
- Statewide: $12 (Enacted by legislature, took effect 2023.)
- Santa Fe: $17.50 (Takes effect 2027.)
- Las Cruces: $13.01 (Took effect 2026.)
CITY COUNCILORS REACT
It was Progressive Democrat Tammy Fiebelkorn who drafted the original ordinance over several months with the assistance of Mayor Tim Keller’s administration. Fiebelkorn called it a “middle ground” as she wanted to raise the minimum wage to $20 an hour or more. She said, with the compromise, “we’re not too dramatically impacting businesses, but we’re also getting people the relief they need, and we’re getting relief for taxpayers too.”
Fiebelkorn said the income for minimum wage workers in Albuquerque is 20% less than the national average, while rents in the city are 25% more than the national average.
Republican City Councilor Renée Grout said this in a statement about the original proposed ordinance:
“[The minimum wage increase] won’t raise anyone’s standard of living, but it will kill the small businesses that offer entry-level jobs. … The real path to financial stability is upward mobility, and small local businesses offer those opportunities. If Albuquerque adopts a $15 per hour minimum wage, it will still take almost $20 per hour for a single person to afford a market rate studio apartment. Upward mobility gets people there; raising the minimum wage doesn’t even come close.”
Republican City Councilor Dan Lewis this in a statement about the original ordinance:
“[The increase is] another misguided policy that ignores economic reality and threatens the small businesses that power Albuquerque’s economy. … [The] strong opposition to the proposal from the Hispano Chamber, Albuquerque Chamber and New Mexico Restaurant Association says it all. … Thousands of local employers and workers are warning that this proposal will hurt Albuquerque’s economy. We should listen to the people creating jobs, not politicians pushing policies that risk destroying them.”
AMENDMENTS SPONSORED BY COUNCIL PRESIDENT KLARISSA PEÑA PASS
The original bill was co-sponsored by Democrats City Councilors Tammy Fiebelkorn, Joaquín Baca, Nichole Rogers and Stephanie Telles. The original ordinance increasing the minimum wage would have raised the minimum wage from $15 an hour in 2027 and also 2028 with annual living adjustments tied to the Consumer Price Index and Fair Market Rent (FMR), measured by the U.S. Department of Housing and Urban Development, for a two-bedroom home in Albuquerque.
Four amendments sponsored by Democrat City Council President Klarissa Peña passed with Democrats Tammy Fiebelkorn, Joaquín Baca, Nichole Rogers and Stephanie Telles voting YES. The four amendments passed were:
- Mandating city workers be included in annual increases
- Spread minimum wage rais increases across three years
- Removal of the Fair Market Rent provision from consideration in annual adjustments and
- Reduced the percentage of the minimum paid to tipped workers.
PUBLIC INPUT
On June 1, during public comments, things became very heated to the point that two people had to be removed for disruptive conduct.
Supporters expressed a struggle to afford basic supplies amid rising costs of rent and other goods and services. A supporter scrolled a Zillow map showing dozens of Albuquerque rentals on a $15 an hour budget. On a $12 an hour budget, it appeared the closest available rental was in Portales.
Those opposing the bill asked councilors to take their time and spoke of the ordinance leading to layoffs and businesses shutting down.
One woman said the ordinance seemed “inflationary,” saying costs would be passed on to consumers, including minimum-wage workers. She added, “These entry level jobs are fine, they are not designed to support a family.”
A man said minimum wage should not be a career or a living wage, but a “starter job.” He said the ordinance would raise the standards of entry-level jobs, affecting availability for those living on the streets and others getting on their feet.
A small business owner said the ordinance “deserves serious discussion” and asked councilors to study how it will affect businesses and workers before implementing it.
In a statement read aloud to the Council, the owner of Taqueria Mexico said he supported the ordinance and said when workers struggle to cover basic needs they also suffer stress, which can lead to less productivity and morale.
Another employer said she was paying $15 already but was concerned on tying annual adjustments to housing costs. She asked for something more staggered and easier to sustain saying this:
“We can’t have these increases be unknown, we have to plan.”
Camp Dozier, who is a co-owner of Happy Hiker in Old Town, said the change wouldn’t impact him because he already pays his employees more than Albuquerque’s minimum wage. Dozier said this:
“Things have gotten more expensive, but we’re still surviving, so we’re not worried about it for now. … It’s always been my opinion, minimum wage means that’s the lowest a company can pay an employee. That doesn’t seem right, so we always want to go above that. … Every salary should be able to support the cost of living.”
Paul Gessing, president of the taxpayer watch group Rio Grande Foundation, expressed concerns about the impact on small businesses and said this:
“It’s a very troubling and significant increase in the minimum wage at a time when, yeah, affordability is an issue, but we could be doing other things in this state and in the city to improve affordability. Do you believe small businesses are going to suffer as a result of this? Yes, absolutely.”
While the Greater Albuquerque Chamber of Commerce supports the intent of the ordinance, they’re also concerned the increase will fall on small businesses who they said are already facing inflation and supply cost pressures. Vice President of Government Relations for the Greater Albuquerque Chamber of Commerce Matthew Stackpole said this:
“The employers most impacted will be local restaurants, retailers, childcare providers and family-owned businesses. Not large national corporations.”
In a letter to the City Council, Ernie C’deBaca, president and CEO of the Albuquerque Hispano Chamber of Commerce, asked members of the body to take their time. He said the chamber “supports fair wages and a thriving workforce,” but the group also has to consider the challenges faced by small businesses.
C’deBaca said “fast-tracking a 25% increase” to the minimum wage was a concern and the proposed ordinance needed input from small businesses as they cannot absorb such increases like larger ones. C’deBaca said this:
“These businesses are not large corporations with deep reserves. … They are the most vulnerable when costs rise faster than revenue.”
C’deBaca said tying annual adjustments to the Consumer Price Index and Fair Market Rate a major concern. Should recent trends continue, he said, minimum wage would reach $26 an hour by 2037, adding that “policies that increase costs too quickly put their progress at risk.”
“A 25% wage increase may sound simple on paper, but for many small and Hispanic-owned businesses, it could mean reduced hours, fewer jobs, higher prices, and in the worst cases, closure. … Let’s make the right decision, not just a quick decision.”
CITY COUNCLORS REACT TO PASSAGE
Republican City Councilors Dan Champine and Renée Grout spoke in opposition to the increase in the minimum wage. Both cast minimum wage jobs as a necessary place for someone to begin their working career and before they build their talents and move onto a career path.
After all four amendment passed and before the final vote, Republican City Councilor Dan Lewis said this:
“The fact is this will have a negative effect on job creation in the city, this will have a negative effect on the economy to our city.”
Progressive Democrat Joaquín Baca pointed out there’s always a reason not to change things but said the only thing he had seen change recently were the costs of gas and other crucial commodities.
Progressive Democrat Tammy Fiebelkorn said this:
“I will just remind us all that minimum wage is literally the floor, it is the least you can pay someone and it costs a certain amount to live in our community. And we are not covering those costs with our minimum wage now. … People in our community cannot make their way on $12… this is a step in the right direction.”
COMMENTARY AND ANALYSIS
Moderate Democrat Klarissa Peña was elected City Council President in January by Republicans Dan Champine, Brook Bassan, Dan Lewis and Renée Grout to the complete chagrin of highly Progressive Democrats Tammy Fiebelkorn, Joaquín Baca, Nichole Rogers and Stephanie Telles who wanted to elect one of their own.
Moderate Democrat Klarissa Peña was elected to a fourth four year term in November, 2026 after a highly contested and negative race where she was opposed by a highly Progressive Democrat. Klarissa Peña is now the onlymoderate Democrat on the City Council capable of bridging the gap in the middle with 4 highly progressive Democrats to her left and 4 highly conservative Republicans to her right.
With the enactment of minimum wage ordinance after adoption of the four amendments to the minimum wage ordinance sponsored by Democrat City Council President Klarissa Peña, she has emerged to be one of the most single, influential and effective City Council Presidents in some time. Peña’s influence equals or even exceeds that of Progressive Democrat Mayor Tim Keller as she exerts tremendous influence over his programs, policies and funding.
Peña’s minimum wage vote was not the first time she has exerted her authority to reign in ill advised and poorly drafted legislation by progressives on the city council. She did so by voting to defeat the “upzoning” amendments to the Integrated Development Ordinance (IDO) advocated by Mayor Keller and supported by Progressive Democrats Tammy Fiebelkorn, Joaquín Baca, Nichole Rogers and Stephanie Telles. The up zoning was an aggressive effort to double or triple density in all residential areas of the city to increase affordable housing arguing it would increase affordable housing. It would not have. Upzoning of virtually 100% all residential properties in the city would have allowed unrestricted development by developers and investors and would have destroyed established neighborhood. Upzoning would have resulted in gentrification, especially in historical neighborhoods.
As is the case with most if not all legislation proposed and sponsored by highly progressive Democrat City Councilor Tammy Feiblekorn, the original minimum wage ordinance she sponsored went way too far and was clearly detrimental to the business community. As usual, Feibelkorn simply advocated her own private agenda and ignored those who opposed her efforts who tried to reason with her.
Simply put, the amended minimum wage bill enacted by the city council is reasonable and well measured, especially with the elimination of the Fair Market Rent provision.
The enacted increase in the minimum wage ordinance now goes to Mayor Tim Keller where he is expected to sign it into law.
Links to quoted or relied upon news sources are here:
https://www.abqjournal.com/news/city-council-passes-minimum-wage-bill-with-some-tweaks/3054465
https://www.krqe.com/news/albuquerque-metro/albuquerque-city-council-passes-minimum-wage-increase/
https://www.abqjournal.com/news/councilors-propose-raising-minimum-wage-to-15-an-hour/3053508
https://www.koat.com/article/albuquerque-city-council-to-vote-on-3-minimum-wage-increase/71457554
https://www.kob.com/new-mexico/proposal-in-city-council-would-raise-minimum-in-albuquerque/