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Saturday, Dec. 31, 2005 5:06 p.m. EST

Schwarzenegger to Raise Minimum Wage

Wounded by his stunning loss with key ballot initiatives in November, Calif. Gov. Arnold Schwarzenegger may be extending an olive-branch to the unions that campaigned so hard to defeat those measures.

Gov. Schwarzenegger next week will propose raising the basic hourly minimum wage by $1 over 18 months – from $6.75 to $7.75 - according to a report in the L.A. Times.

A politically stronger Schwarzenegger had rejected similar increases over the past two years.

The governor is expected to ask the state legislature to boost the current minimum wage in two 50-cent phases – once in September and again in July 2007.

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  "This is the new Arnold, the one that is willing to compromise," said Ken DeBow, a political science professor at Cal State Sacramento in an interview with the San Francisco Chronicle. "I still think most voters are pretty centrist. Things are going to rebound in his favor if he is seen making a good-faith effort to make reasonable compromises with the Legislature."

California Democrats, such as Assembly Speaker Fabian Nunez of Los Angeles, said the proposal is a "good start,” but it is not enough.

Union leaders, who traditionally support Democrats, are pushing for automatic cost-of-living increases as well.

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