Employees, business owners, students and other members of the community met Thursday night at the Civic Center for a public hearing held by Mayor Dave Cieslewicz to discuss whether or not the minimum wage in Madison should be raised above the federal level.

The input given at the meeting will be used to direct the future debate to take place with the three committees considering the issue.

As the proposal nears the City Council’s vote on minimum wage, some argue the cost of living in Madison is so high it is almost impossible to survive paycheck to paycheck, while others believe the raise could be a driving force for local businesses toward economic loss and bankruptcy.

The proposal suggests the current federal minimum wage, which stands at $5.15 an hour should be raised to $7.75, and for tipped workers from $2.33 to $3.88.

Fred Engle, a local restaurant manager, is one such person who foresees difficulties if the proposal is passed.

“If everyday was like a Badger football Saturday, it would be different,” Engle said. He explained that with so much competition in the area it would be hard for restaurant owners to increase pay and still make profits, especially on a slow day.

“It would result in restructuring and a possible cut of hours,” Engle said.

Engle worked as a host receiving minimum wage for two years before beginning his managerial position and said he can relate to those who feel strongly about raising hourly wage.

“I can understand from a personal standpoint, but in terms of an operation it’s not all good.” Engle said.

Engle suggested raises in minimum wage should be given accordingly. He feels that for quick serve restaurants and retailers it may be a good idea to increase hourly wage because they are not compensated with tips. Full service restaurant employees, however, receive tips at the end of the day and can make well above minimum wage, he said.

On the flip side of the controversy are perspectives such as those of Alderman Austin King, Dist. 4.

“The current minimum wage is ridiculously outdated. It is keeping people trapped in absolute destitute poverty,” he said, adding he believes raising minimum wage will reduce the amount of social services.

He thinks increased wages will lead to more spending money, which in turn will boost local revenue. Businesses will see less employee turnover and they will have to spend less on training and recruitment, he said.

Mayor Dave Cieslewicz also agrees strongly with the views of King.

“The minimum wage in Madison has been stagnant for seven years and consumers are losing buying power,” Melanie Conklin, the mayor’s communication director, said. “It is the flipside to the affordable housing equation.”

King and Cieslewicz believe the minimum wage should be indexed to the economy so it fluctuates upon inflation. Conklin said this was proposed in 1979 but was unsuccessful. Had minimum wage been indexed in then, it would be at about $7.75 today.

“We need to react and adapt to the economy,” King said.