About time, maybe just possibly liberals learn math and reality? Arizona law makes cities pay for increasing their minimum wage ARIZONA - Arizona cities and counties that raise their minimum wage above that of the state could be forced to cover the extra associated costs under a new law that goes into effect Aug. 27. Under the guidelines, part of House Bill 2756, officials will calculate how much money these local governments must reimburse the state. According to the Arizona Republic, when cities raise their minimum wage, the government ends up having to pay more for services in that area by increasing wages for government contractors. For example, House Appropriations Committee Chairwoman Regina Cobb (R-Kingman) told the Arizona Republic that the state received a request to increase funding for organizations that provide services to people with developmental disabilities after the city of Flagstaff raised its minimum wage. Arizona pays for these services, so the workers' higher minimum wage increased the state's costs.