The problem you are having is that the unemployment rate is down to under 4% and that means that almost everyone of the 'good' people are not only taken...but are employed by companies that start them at $15.00 or more. In 2008 the unemployment rate was almost 6% and both state and Federal minimum wages were close to $7.25 an hour...so you were paying almost $3.00 an hour MORE than minimum wage...that was competitive...and people were very anxious about getting and keeping jobs.
Now...there is a push to raise the Federal Minimum wage to $15.00 per hour and many states have already done this. Many COMPANIES have already done that to both retain workers and attract NEW workers. People who are drug free, reliable AND honest know that they can ask for a higher wage because they KNOW they will easily pass any drug test and that any one calling their previous employers will get a glowing recommendation of their work ethic.
When people KNOW what they are worth, it is hard to get them to accept a lower wage and work up unless there is tremendous pressure to do so.
Therefore, you are not even getting the good people to look at your ad. And if they do, when you tell them they will only be starting at $12.75...they know they can go to most retail chains (Costco, Etc) and get paid more.
They ALSO know that they can go to most state and government jobs and get paid more, with benefits and job security ( Go on line and see what the starting wage for trash collection and recycling center are in your area).
So, you are at an impasse....you can't afford to pay more but you need a person to work or your business could suffer.
My only suggestion is to offer people a clear route to more money. tell them they start at $12.75 and after 90 days.. with no complaints they move up to $13.00. then after that tell them they get a 25 cent per hour increase for every 90 days with no complaints ...they show up on time and can pass a drug test every 90 days.
Other than that, perhaps offer to sponsor someone from another country. Check with your church. If you bring someone in and you employ them for a couple of years they can try to get their permanent status, but they have to prove employment...and as long as they work for you, they are employed. And if working for you means staying here ....then they will be punctual and not do drugs.