Negotiations surrounding a proposed minimum wage increase may benefit student workers in the short run, but could ultimately lead to higher costs in other areas, such as tuition.

According to Brian Schulz, minimum wage advisory council member and president of the Wisconsin Green Grocer Association, if the University of Wisconsin struggles to maintain additional wages for its employees, students may face increases in tuition.

A group of business leaders, labor leaders, people in social service organizations and economic experts are working to negotiate a fair and reasonable proposal for a minimum wage increase. Gov. Jim Doyle, who set up the minimum wage advisory council, hopes the proposal may help 130,000 to 160,000 Wisconsin workers, according to a statement from Doyle.

People who earn the current minimum wage of $5.15 per hour and work full time earn under the federal poverty rate.

In addition to affecting students, the increase would impact the city of Madison.

The increase, according to its proponents, will benefit those who need it most.

?It will help deliver more money to some of the most poorly paid workers,? said Laura Dresser, a minimum wage advisory council member and Research Director for the Center On Wisconsin Strategies.

In Dresser?s opinion, the issue is not about economics, and there is no evidence an increase will decrease job opportunities. Instead, he feels the minimum wage increase is about politics.

?It will strengthen the floor for other labor standards,? Dresser said.

An increase, however, may have an adverse effect on economic conditions, according to Scholz. She said people often forget business owners must withdraw the money added to a minimum wage increase from other important allocations.

?You generally don?t need the government to tell you what the minimum wage is, because the market figures it out on its own. Money just doesn?t show up in little bags under your door,? Scholz said.

In order to deal with minimum wage increases, businesses have various options, such as cutting health care or day care benefits for employees. Another possibility could be to hire fewer employees, which may raise unemployment rates, or to increase product prices.

?For small business owners it can be a critical decision,? Bill G. Smith, state director for National Federation of Independent Businesses, said, adding the increase may cause small business owners to lay off employees or decrease hours.

A minimum wage increase may also prevent new businesses from opening in Madison, with new businesses entrepreneurs opening stores in the suburbs.

Scholz agreed, saying, ?If I want to build a grocery store, this would be the last place I would want to look.?

One solution the council has discussed is implementing a teen wage, which would enable businesses to pay new and less-experienced teenagers less than more experienced older workers.

No matter what the council decides, an increase would benefit some groups of people, but may impair others, Smith said.

?There would be winners and losers.?