SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Today’s numbers

Friday, Feb 21, 2014

* Kurt Erickson has a story about the cost for Illinois universities of raising the minimum wage to $10 an hour

At Southern Illinois University, for example, President Glenn Poshard said an increase could cost his institution $3.2 million in additional wages at a time when the General Assembly may be considering further cuts in aid to higher education.

“We need an increase in funding in higher education,” Poshard told members of a House appropriations panel Thursday. “We don’t have any extra to run our university.” […]

Illinois State University officials say the change could affect nearly 4,200 student workers currently earning the minimum wage at jobs ranging from campus food services to the student recreation center.

In all, the cost at ISU of an increase would be about $1.6 million, officials said.

Eastern Illinois University predicts an increase will cost about $940,000. And, because the university has committed to no tuition increase next year, a minimum wage hike likely would trigger a reduction in the number of student workers, said Derek Markley, chief of staff to President Bill Perry.

By the way, Senate minimum wage hike sponsor Kimberly Lightford told Kurt she’s at least two votes shy of passing the bill in the Senate. The real test, though, will be in the House.

- Posted by Rich Miller        


26 Comments
  1. - Ray del Camino - Friday, Feb 21, 14 @ 10:58 am:

    How about carving out an exception for student workers at public universities?


  2. - CicrcularFiringSquad - Friday, Feb 21, 14 @ 11:00 am:

    How about a 10% reduction in deputy chancellors?
    That should free up some cash for the raises


  3. - Formerly Known As... - Friday, Feb 21, 14 @ 11:02 am:

    If it’s $3.2 million at SIU, that’s about $6 million or more at U of I.

    Illini fans, rejoice. This is finally the excuse you need to simply cut the football program and end the suffering, lol.


  4. - RonOglesby - Friday, Feb 21, 14 @ 11:04 am:

    “How about carving out an exception for student workers at public universities?”

    Good idea at first blush, but then you ask why are student workers so cheap? well because they have very little skills and work part time…

    But there are plenty of those in the work force so wouldn’t that apply to every organization not just universities with Students?

    Whats good for the goose and all of that. It shoes how it increases costs, which in turn increase the price of anything produced by those folks.


  5. - Yellow Dog Democrat - Friday, Feb 21, 14 @ 11:17 am:

    If wages for student workers go up, won’t financial aid costs go down?

    Campus bars, on the other hand, will take a hit.


  6. - Quiet Sage - Friday, Feb 21, 14 @ 11:23 am:

    During the past 20 years, tuition increases at public universities have far exceeded the rate of inflation. http://trends.collegeboard.org/college-pricing/figures-tables/average-rates-growth-tuition-and-fees-over-time
    For the 2014-2015 school year, the in-state tuition for science and engineering majors at the U. of Illinois Champaign-Urbana will exceed $17,000. This does not include other fees or the costs of room and board.
    http://registrar.illinois.edu/financial/tuition_1415/AY/ugrad_engineering.html
    The minimum wage level, which has not kept pace with inflation, has little or nothing to do with these tuition hikes. Reductions in State aid may account for a portion of the increases, but there is certainly much more involved. Our young people should not be saddled with such exorbitant tuition bills. The full reasons for the tuition increases need to be made public. The General Assembly should launch a full-scale investigation.


  7. - A guy... - Friday, Feb 21, 14 @ 11:32 am:

    Minimum wage jobs are already very hard to come by at or near college campuses. Reality is, this bill would make these jobs more scarce. Same with everywhere else. Unintended consequence is less jobs. Not a winner


  8. - Ahoy! - Friday, Feb 21, 14 @ 11:33 am:

    Park Districts will be a big looser in this as well.

    Yellow Dog Democrat, financial aid costs won’t go down because the hours worked will probably go down and there will be a neutral impact on wages with slower services and turnaround time. The Universities can’t just absorb the payroll hit, they would have to manage it by reducing hours or hiring.


  9. - Huh? - Friday, Feb 21, 14 @ 11:41 am:

    $3.2 million increase out of what size budget?


  10. - Walker - Friday, Feb 21, 14 @ 11:50 am:

    ===The universities just cannot absorb the payroll hit.===

    Made me laugh.

    You don’t hear that argument when they bid for some tenured faculty, and way overpay administrators.

    Agree with QuietSage above. The costs have spiraled out of control for twenty years, and that has nothing to do with minimum wage jobs.


  11. - Steve - Friday, Feb 21, 14 @ 11:51 am:

    This is funny stuff! What a great way to teach college students the laws of microeconomics : the demand for labor is a downward sloping curve.


  12. - Dirty Red - Friday, Feb 21, 14 @ 11:54 am:

    Higher ed costs go up six percent each year. Minimum wage does not.


  13. - Out Here In The Middle - Friday, Feb 21, 14 @ 11:57 am:

    ==How about carving out an exception for student workers at public universities?==

    Why not an exception for any worker who is claimed as a dependent on another person’s taxes?


  14. - Century Club - Friday, Feb 21, 14 @ 12:08 pm:

    Huh?–

    Looking at their website, SIU’s operating budget was $889 million in FY 2012, so this represents a 3 tenths of one percent impact on their budget. So, you know, ring the alarm bells.


  15. - wordslinger - Friday, Feb 21, 14 @ 12:21 pm:

    Yeah, the minimum wage is the reason tuition keeps going up. Geez, where do you get this stuff?

    –Minimum wage jobs are already very hard to come by at or near college campuses. Reality is, this bill would make these jobs more scarce. Same with everywhere else.–

    Yeah, that’s the agreed-upon talking point.

    The cost of labor does not necessarily impact the demand for labor. If you have goods or services in demand in the market, you have need for the labor. Nobody’s hiring out of the goodness of their hearts.

    And the cost of labor is just one of many factors in the cost of goods and services.


  16. - Steve - Friday, Feb 21, 14 @ 12:37 pm:

    wordslinger:

    The cost of labor isn’t the only cost that an employer has . But, at a university it’s the dominant cost. So, the demand for labor really is a downward sloping curve. What a way for students to learn real world economics!


  17. - waffle fries - Friday, Feb 21, 14 @ 12:41 pm:

    Similar concern for NFP contractors serving persons with disabilities, but these entities can’t cost shift or raise tuition.


  18. - wordslinger - Friday, Feb 21, 14 @ 12:44 pm:

    –What a way for students to learn real world economics?–

    How about that Illinois public university model? What with the IBHE, virtually every university with its own governing board and administration acting in an uncoordinated fashion, program redundancy upon redundancy competing for the same students and resources…..

    You mean those “real world economics?”


  19. - Big Muddy - Friday, Feb 21, 14 @ 1:29 pm:

    More buffoonery from Gov. Quinn that just shows how inept the man is. He is in the midst of a budget crisis and he is magnifying the problem by straining state university budgets by pushing for a min wage increase. Guess we have to wait a month to find out how he intends to pay for it now that he kicked his budget address down the road. Rome burns.


  20. - fed up - Friday, Feb 21, 14 @ 1:31 pm:

    the CBO has estimated up to 1 million jobs will be lost if this is passed nationwide, i agree with a higher minimum wage but their are problems associated with it.


  21. - unknown poster - Friday, Feb 21, 14 @ 1:49 pm:

    If the minimum wage is increased to $10 per hour what will happen to all those that currently make $10 per hour? Shouldn’t their wages go up accordingly to $11.75? Then what about those already making $11.75? In the end, it will be all of who will pay for this by paying even higher prices for goods and services including college tuition. To think employers will absorb this cost altruistically is naive. Once the market adjusts to higher wages with higher prices then what is really gained? I guess we will have to raise the minimum wage even higher.


  22. - Yellow Dog Democrat - Friday, Feb 21, 14 @ 2:12 pm:

    @Ahoy!

    The universities cant have it both ways.

    Either it is going to cost them millions more or it aint.

    My guess is that it will. You can only reduce hours in a labor intensive operation like cafeterias so much.

    Student credit unions are another matter. All of those student cashiers can be replaced by atms.


  23. - unknown poster - Friday, Feb 21, 14 @ 2:23 pm:

    “You can only reduce hours in a labor intensive operation like cafeterias so much.”

    Exactly. The end result will be higher meal costs at student cafeterias to offset the increased costs to produce said meals.

    Sort of makes my point.


  24. - CapnCrunch - Friday, Feb 21, 14 @ 2:37 pm:

    “The cost of labor does not necessarily impact the demand for labor. If you have goods or services in demand in the market, you have need for the labor.”

    Except when you can replace it with capital. Remember when the clerk behind the counter poured your soft drink and put it on your tray? Now he hands you an empty cup and points to the self dispensing machine.


  25. - wordslinger - Friday, Feb 21, 14 @ 2:44 pm:

    – Now he hands you an empty cup and points to the self dispensing machine.–

    That’s not going to stop, regardless of a minimum wage.

    Although, there is a movement in retail for more service. Jewel is starting to pull out its self checkout machines in some markets. They’re losing people to the Whole Foods and Trader Joes.


  26. - Formerly Known As... - Friday, Feb 21, 14 @ 3:42 pm:

    === The cost of labor does not necessarily impact the demand for labor. ===

    But it DOES necessarily impact the

    1. Location of that labor (call centers in New Delhi or Newman?)

    2. Incentives for automating your workforce

    3. Number of new laborers you can hire to fill that demand.

    In the words of the Department of Labor on this very subject earlier this month, “The researchers find that increasing the minimum wage does not lead to a reduction in the level of employment; however, increasing the minimum wage results in a substantial drop in the rate of job creation. They determine that the decline in job growth is the result of expanding establishments decreasing the number of jobs they create rather than resulting from additional job losses among declining industries.”

    Raising the minimum wage may not result in a wave of layoffs, but it would absolutely harm and reduce job growth.

    For a state that’s already suffering from poor job growth and projected to finish near the bottom in 2014, the timing isn’t right to make this move.


Sorry, comments for this post are now closed.


* Stay tuned
* Another collectivist rag weighs in
* SUBSCRIBERS ONLY - This just in...
* Today's quotable
* Question of the day
* Munger has "exciting news," Mendoza posts very long ad
* Emanuel says Rauner has "wasted" his term
* I just can't
* Maybe not
* A look at the elected Chicago school board bill
* Caption contest!
* More like this, please
* AG Madigan announces huge VW settlement
* Rauner blasts Dems
* Scherer opponent drops out
* Rauner poll: Voters oppose CPS "bailout"
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** UPDATED x1 - Madigan won't say if he has the votes *** House not yet in agreement with Senate
* *** UPDATED x1 - Bills filed *** Rauner unveils his stopgap plan
* SDems leak K-12 funding plan
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Live.ly shoots to the top of the App Store
* Mobile shopping startup PredictSpring raises $11.4M
* AT&T Lumia 1520 rises out of inventory purgatory with sales (in 2016)
* Galaxy S7 sales may balloon Samsung profits for Q2
* Apple Expands Shot on iPhone Campaign With Photos Focusing on Colors
* First batch of Turing Phones shipping July 12
* Apple doubles down on photography with new Shot on iPhone campaign

* Fulmer to represent White Sox at Futures
* Schedule eases up for White Sox, who can’t ease up themselves
* Hawkins among top prospect performers Monday
* Hawkins among top prospect performers Monday
* 2016 Draft: Signing and bonus tracker
* Hit in 57 games, win $5.6 million
* Less than 3 days left to cast your All-Star vote

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Rauner, Democrats push rival Illinois school bu.....
* Rauner, Democrats push rival Illinois school bu.....
* Rauner, Democrats push rival Illinois school bu.....
* Rauner Introduces New Funding Plan That Doesn't.....
* Rauner, Democrats push rival Illinois school bu.....
* Rauner, Democrats push rival Illinois school bu.....
* Rauner, Democrats push rival Illinois school bu.....
* Rauner, Democrats push rival Illinois school bu.....
* Gov. Bruce Rauner and majority Democrats are pu.....
* School administrators will have rally for budge.....


* Illinois residents asked to leave fireworks to the pros
* Illinois corrections owes city $1.2 million in utilities
* Officials: Starved Rock visitors should watch crowds
* Beagle-rescue group sues U of I over research-animal data
* Illinois medical marijuana director resigns
* Rauner: Democrats are agreed on partial-year budget plan
* Off-duty Cook County deputy sheriff shoots, injures 2
* Activists push for stricter laws in wake of Hastert case
* $2B in Illinois road projects threatened by stalemate
* Economic woes cause drop in number of Illinois boaters

* Deadrick Wolfer suspends House race vs. Scherer
* Higher education coalition urges full funding for both 2016, 2017
* Judge orders Illinois to add PTSD to medical marijuana list
* Deadrick Wolfer suspends Illinois House race vs. Scherer
* Former state worker pleads guilty to theft charges
* Carlinville train station upgrade dependent on state budget
* Rauner pushes new stopgap budget, rips Democrats' plan
* Dire scenarios for Illinois in second year without budget
* Illinois' share of multistate VW settlement nearly $29M
* Deadrick Wolfer drops out of Illinois House race vs. Scherer

* Trunk Club to shut Goose Island operation, cut 250 jobs
* Dire scenarios for Illinois in second year without budget
* Head of TSA in Chicago resigns
* Rauner pushes new stopgap budget, rips Democrats' plan
* State's medical marijuana chief resigns


* Judge approves settlement in ‘Happy Birthday’ copyright case
* Northwestern Memorial workers rally for $15 per hour wage
* Man wounded in Woodlawn shooting
* Jimmy Buffett musical unveils creative team and new name
* Kapos: Head-turners at these July 4th parties
* Editorial: Illinois, one year later, falling apart by the numbers
* Lisa Marie Presley files for divorce in Los Angeles
* Roger Simon: Warren impressed her way out of shot at VP
* Police warn of burglaries in McKinley Park
* FOP president says cops demoralized, ‘baited’ by public


* Producers credit the people of Aurora for movie's success
* Gunman shoots 1 at downtown Denver building; kills self
* Airbnb seen winning legal fight against hometown San Francisco
* Dozens killed in suicide attack on Istanbul airport
* Sheriff Tom Dart takes another look at mayor's office
* Plea deal involving Downers Grove man adds to discussion over campus sex crimes
* Restaurant staff remembers Griffith man killed in U.S. 30 wreck
* Judge orders Illinois to authorize medical marijuana for PTSD
* Trailer park residents who sued Wheeling likely to be relocated
* Man shot in early morning Oak Park home invasion


* Deadrick Wolfer suspends House race vs. Scherer
* Higher education coalition urges full funding for both 2016, 2017
* Judge orders Illinois to add PTSD to medical marijuana list
* Deadrick Wolfer suspends Illinois House race vs. Scherer
* Former state worker pleads guilty to theft charges
* Carlinville train station upgrade dependent on state budget
* Rauner pushes new stopgap budget, rips Democrats' plan
* Dire scenarios for Illinois in second year without budget
* Illinois' share of multistate VW settlement nearly $29M
* Deadrick Wolfer drops out of Illinois House race vs. Scherer


* PODCAST: SportsTalk 06-28-16
* Judge will recommend boot camp in drug case
* PODCAST: Luke Boyce, Shatterglass Studios 06-28-16
* Man arrested after burglary report faces variety of charges
* Suicide bombers target Istanbul airport, killing at least 28
* UPDATED: Final Benghazi report: No 'smoking gun' pointing to Clinton
* E3 LA report: How's it feel to be an agent of Mayhem?
* Judge dismisses suit filed by Rush against Cobb, Avery
* Man wounded in Champaign shooting early Tuesday
* Woman can escape felony conviction for theft if she meets conditions


* Dolick appointed Prospect Heights' new 5th Ward alderman
* Algonquin man sentenced to jail for October DUI
* DUI arrests spike in Carol Stream, Elgin
* Trial begins for Ingleside driver charged in police chase
* Bartlett officials: Leave fireworks to the professionals this 4th of July

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Illinois to get $17 million for HIV assist......

* GOP Senator Mark Kirk Immediately Politici......
* Question of the day - The Capitol Fax Blog......
* Mark Kirk: A man without a party? - STLtod......

* Berman: What Would Gay Christians Have Straight Christians To Do?
* Thorner/O'Neil: Brexit's Fine Line Between Committing and Correcting
* Britain's Prime Minister To Resign After 'Brexit' Vote
* Lucas Museum Abandons Plans To Build In Chicago (UPDATED)
* Progress Illinois On Abbreviated Publishing Schedule
* IL Reproductive Rights Groups Hail High Court Decision
* What's the Difference Between England, Britain and the U.K.?
* Dold to launch "People before Politics" bus tour Wednesday in Lake Bluff
* Bernie Sanders Says He Will Vote For Hillary Clinton In November
* Cartoon Of The Day


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller