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.


* Good morning!
* Ginning up the base
* 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

          
        * Samsung announces the Galaxy A5 and Galaxy A3, its “slimmest smartphones to date”
        * Samsung announces ultra-thin Galaxy A5 and Galaxy A3
        * Metal unibody phones Samsung Galaxy A3, A5 get official announcements
        * Latest Q3 2014 IDC figures show Xiaomi now 3rd in smartphones shipped
        * In The Best Conditions, iOS-Exclusive Vainglory Is A Top-Notch MOBA
        * Xiaomi sees meteoric rise to number three global smartphone OEM
        * HTC is making a mistake by not making the One M8 Eye broadly available

        * Ambulance Drone Could Help Save Heart Attack Victims
        * Ampy Wearable Battery Juices Itself Up Via Kinetic Energy
        * Bistro Face Recognition Food Bowl For Feline Lovers
        * Unsticker.Me Gets Rid of Stickers from Your Facebook Feed
        * Take Out Your Frustrations on These Anti-Stress Rubber Mushrooms
        * Cover Your Laptop’s Camera, Protect Your Privacy with CameraBadge
        * Now This is Handy: Hair Drying Gloves

        * Minnie Miñoso belongs in the Hall of Fame
        * Development of young core in '15 can define Chicago's future
        * Abreu leads White Sox GIBBY hopefuls with five noms
        * Allen, Wills among new faces on Hall's Golden Era ballot
        * The offseason begins with a new Chicago manager and old arguments
        * World Series Game 7: Notes and discussion
        * Guillen, White Sox look back on '05 championship


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

        Archives
        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


        * Why I'm voting for Pat Quinn - Chicago Tribune..
        * Gov. Quinn visited Triton College on Oct. 28 - .....


        * 3 killed when train strikes SUV
        * Waukegan teachers approve contract ending strike
        * 2 killed, 8 injured in construction zone wreck
        * Suburban judge attacked by inmate in courtroom
        * Man charged in death of Rockford attorney in crash
        * Inmate freed in landmark Illinois case
        * Social issues take backseat in governor's race
        * Illinois basketball court not damaged by water
        * Quinn, Rauner pick up newspaper endorsements
        * Judge won't sentence absent former Ohio official

        * Attorney general seeks clarifications from Topinka’s former nonprofit
        * Inmate freed from Jacksonville prison in landmark Illinois case
        * Cross opposes income tax hike extension
        * Gay marriage, abortion issues take back seat in governor’s race
        * Madigan’s office seeks clarifications from former Topinka nonprofit
        * Cross says no to income tax hike extension, sales tax on services
        * Gay marriage, abortion issues take backseat in governor’s race
        * Illinois inmate freed in landmark capital punishment case
        * Rauner says women will decide governor's race
        * Judge denies ex-representative new bribery trial

        * Lake Shore Drive ramps by McCormick Place set for early 2015 construction
        * Groupon forecast falls short of estimates
        * Groupon mulls overseas options as forecast falls short
        * Groupon hires advisers top find partners for Asia businesses
        * Groupon hires advisers to find partners for Asia businesses


        * Garcia: I'm a serious mayoral candidate, not just a protest vote
        * A higher standard of criminal justice
        * Ex-Northwestern doctor to pay $475K to settle fraud claims
        * Sad day  when  Catholic  schools  close
        * Chicago bead merchant Ronnie Klein, whose Loop business drew stars, dead at 65
        * Chicago bead merchant Ronnie Klein, whose Loop business drew stars, dead at 65
        * Durbin, Oberweis square off for final time
        * State’s attorney investigating alderman’s prize offer to voters
        * Face it: Animator has found a great way to pass time on his commute
        * Refund those unfair yellow-light tickets


        * Alleged lieutenant of drug kingpin 'El Chapo' seeks minimum prison term
        * Installation begins on Wallenda's tightrope over Chicago River
        * Off-duty police officer beaten and robbed in the Loop
        * Teen wounded in Morgan Park shooting, at least 3 others injured across city
        * Waukegan district, teachers come to terms after monthlong strike
        * Judge again orders Crystal Lake South bleachers to come down
        * Naperville high school cancels activities after bomb threat
        * Officials: Defendant in Maywood court attacked judge
        * Rauner, Quinn squabble over who deserves credit for digital lab
        * Coroner: Body buried in Indiana is missing relative of dead woman, slain man


        * Prisoner Freed After Recanting Testimony "Angry"
        * The Choice Of Choice: Gov. Candidates On Abortion
        * Group Has A Goal Of Improving Access To Preschool In Macon County
        * Turn out for what? Will young voters make it to the polls, or stay home as usual?
        * As Infrastructure Crumbles, Trillions Of Gallons Of Water Lost
        * Authorities: Springfield Woman's BAC Three Times The Legal Limit
        * 2014 Election Coverage: Citizens, here's your homework!
        * Aldermen skip chance to ask about city’s handling of police commander
        * Immigrant Rights Groups: Demand Oustrips Slots For Driver's Licenses
        * U-S Senate Candidates Differ On Ebola Response And More


        * Esther Cepeda: Elizabeth Pena: Trailblazer on the big screen
        * Andy Shaw: Voter turnout instrumental to reform
        * Ty Fahner: What if the Court rejects pension reform?
        * Attorney general seeks clarifications from Topinka’s former nonprofit
        * Quote of the Day: Friday, Oct. 31
        * Inmate freed from Jacksonville prison in landmark Illinois case
        * Cross opposes income tax hike extension
        * Gay marriage, abortion issues take back seat in governor’s race
        * Illinois inmate freed in landmark capital punishment case
        * Rauner says women will decide governor's race


        * Big Ten update: Big weekend for Beckman
        * Road to Champaign: In-state commits prep for playoffs
        * Thursday's prep highlights: Schlarman claims regional
        * Prairie Capital can be home away from home
        * Central snaps Centennial's run
        * O'Toole acts with a touch of humor
        * Campaigns go into overdrive this weekend
        * Final debate brings up new issues for 13th District candidates
        * Letter: Special education on the wrong track
        * Letter: Murrayville reunion a wonderful event


        * Schaumburg tops Niles West for regional championship
        * Hossa hits milestone where it all began
        * Focused Cary-Grove a regional champ
        * Harvest Christian wins 4th straight volleyball regional
        * Parties, PACs pouring money into 56th District race

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * Election 2014 Endorsements...
        * Election 2014 Endorsements...
        * Election 2014 Endorsements...
        * Election 2014 Endorsements...
        * Election 2014 Endorsements...

        * How first lady, Rauner factor into their p......
        * Celeb Spotting...
        * ISIS Has More Land, Money, and Fighters Th......
        * A Republican Senate Victory Could Splinter......
        * Rehabilitation Institute of Chicago Celebr......

        * Poll: Downstate Could Go Either Way In Guv's Race
        * South Siders To Rally For Trauma Center Outside U of C Gala
        * Op-Ed: Google Car Gives The Blind More Independence While Saving Illinois Millions
        * Google Car
        * DNA Info: Englewood Whole Foods Developers Looking for More Tenants
        * Sorry Mark Brown but I don't think it is about the money...
        * Waukegan Teachers Reach Deal With Board Of Ed
        * Waukegan Teachers Reach Deal With Board Of Ed (UPDATED)
        * You think the Hinsdale board was crappy to teachers? Look at what they are doing to plow over the support staff.
        * Mark Anderson: Chicago progressives have an embarrassment of riches.


        * Editorial: Rauner best choice as governor to begin to reverse Illinois’ fortunes
        * Quinn to celebrate Rauner’s UI Labs accomplishment
        * Another Democrat Runs Away From Pat Quinn
        * Governor Pat Quinn Statement on Tentative Agreement to End Waukegan Teacher Strike, Return Students to Classrooms - State Education Chief Worked Overnight to Reach Common Ground, Students Heading Back to School on Monday
        * Governor Quinn Joins UI LABS to Break Ground on New Digital Manufacturing Hub - Digital Manufacturing and Design Innovation Institute Set to Open in 2015, Create Jobs




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller