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* The biggest potential flaw with Gov. Rauner’s Turnaround Agenda is in this story…
An attempt to support Gov. Bruce Rauner’s turnaround agenda in Kane County failed Tuesday in a vote that ultimately supported Illinois’ prevailing wage law.
Drew Frasz tried to rally fellow board members to reject the annual prevailing wage ordinance the county must pass to comply with state law. Frasz, a nonunion contractor from Elburn, said the prevailing wage only makes government construction projects more expensive for taxpayers. He wants state lawmakers to repeal the prevailing wage and support Rauner. […]
Frasz, who is also vice chairman of the county board, made a similar attempt to reject the prevailing wage law in a board vote about a year ago. Tuesday’s vote received the same total of “no” votes as last year’s attempt. Six of the board’s 14 Republicans voted “no”: Frasz, Maggie Auger, Doug Scheflow, T.R. Smith, Susan Starrett and Barb Wojnicki.
The majority of the board, including all 10 Democrats, voted in favor of the prevailing wage law. As Kane County Democratic Party Chairman Mark Guethle watched from the audience, board member Brian Dahl spoke in support of the prevailing wage as key to keeping people out of poverty and in good-paying jobs.
As we all know, Rauner wants to give local governments the right to opt out of union collective bargaining items and at least part of the prevailing wage.
But he can’t even count on a majority of a GOP-dominated suburban county board to vote for what amounts to a fantasy resolution.
* The only local governments which would conceivably adopt Rauner’s local opt-outs are run by very conservative Republicans. And there aren’t enough of those to make a difference in this state’s $775 billion gross state product. And many of them (particularly in the suburbs) also have enough cash coming in that they probably don’t need the money savings all that much anyway.
Hey, maybe I’m wrong. Maybe other governments would adopt the reforms over time. But from my position, this is just a whole lot of stalemate over what likely wouldn’t amount to much “progress” anyway.
To his credit, Rauner has scaled back his list of reforms to make them more palatable and tried to move forward. He probably has a longer distance to travel, however. Get the nose under the tent first. Change is almost always incremental.
posted by Rich Miller
Wednesday, Jun 15, 16 @ 10:55 am
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… board member Brian Dahl spoke in support of the prevailing wage as key to keeping people out of poverty and in good-paying jobs
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Yep — and there it is. This is essentially the moral myopia — the myopic social and economic vision — that has eluded — and will continue to elude — Rauner.
Comment by Formerly Known as Frenchie M Wednesday, Jun 15, 16 @ 11:00 am
In what way has he scaled back his list of reforms to make them more palatable? I’ve heard this claim but it’s never backed up with specifics.
Comment by Reality Check Wednesday, Jun 15, 16 @ 11:03 am
As any good lobbyist knows, if you want a big package you break it up into smaller chunks and pass them incrementally.
Comment by Not It Wednesday, Jun 15, 16 @ 11:07 am
The IL prevailing wage law allows the local agencies to research and establish the prevailing wage in their communities. If Kane County wanted, they could have established the prevailing wage as the minimum wage.
There is nothing in the law that says they have to use the wage rates set by the IL DOL.
Comment by Huh? Wednesday, Jun 15, 16 @ 11:09 am
Wow. Among the six Republican “no” votes, you have Doug Scheflow, who is Chairman of the Elgin Township GOP, Maggie Auger, who is the wife of the Chairman of the Dundee Township GOP, and Barb Wojnicki, who is the former Chair of the County GOP.
Comment by Kane Co Wednesday, Jun 15, 16 @ 11:09 am
Passing the ordinance is largely ceremonial in terms of legal implications. Whether they pass it or not is pretty irrelevant. State law applies either way.
Comment by BK Bro Wednesday, Jun 15, 16 @ 11:11 am
=== But from my position, this is just a whole lot of stalemate over what likely wouldn’t amount to much “progress” anyway. ===
To put it mildly. I’d be more frank and say it’s a whole lot of damage to people, higher education, businesses, state government and local government for minor benefits. Essentially, we’re now running backwards to enable us to take the Rauner one-step forward. Sigh.
Comment by Norseman Wednesday, Jun 15, 16 @ 11:12 am
Wow, first Kyle McCarter jumps ship and now Kane County?
I wonder if any of the Superstars have told the Governor yet.
Comment by 47th Ward Wednesday, Jun 15, 16 @ 11:12 am
And we also know that projects done by skilled tradesmen are completed with a better finished product, etc.
The last thing we need in this world is turn “ACME Roads And Bridges” (.01%ers) loose with a bunch of part-time kids at $8.25/hr telling them to weld that steel, etc.
Let’s have some pride in the Trades and pay them what they are worth.
Comment by cdog Wednesday, Jun 15, 16 @ 11:16 am
“Change is almost always incremental.”
Great closing line, Rich. Three yards and a cloud of dust [h/t Boehner]–unless the rest of the government is the same political party. Even when Democrats held two branches of government they couldn’t pass all liberal policies, such as a progressive income tax and minimum wage increase.
Good for Kane County to reject the prevailing wage proposal and for supporting middle class workers. We saw widespread rejection of Rauner’s worker/union-related TA items last year. That the governor didn’t heed these signals is troubling and telling.
Comment by Grandson of Man Wednesday, Jun 15, 16 @ 11:19 am
Kane Co - a no vote was a vote with the Governor’s position. The vote was for continued use of prevailing wage. Counties are required by law to pass it each year.
Comment by muon Wednesday, Jun 15, 16 @ 11:20 am
The truth is eliminating prevailing wage laws do not decrease the taxpayer’s costs of any projects.
Multiple independent academic studies all agree on these facts.
However, prevailing wage laws do reduce what the worker’s on these public projects resulting in less consumer spending and erosion of the tax base.
More money is Franz’ pockets on no money in anyone else’s.
Comment by Chicago 20 Wednesday, Jun 15, 16 @ 11:23 am
Kind of supports Madigan’s assertion that Rauner’s non-budget items are extreme, as well as your figures, Rich, which top out at 500 million for the affects of full implementation of the Turnaround agenda that has cost the state billions due to Rauner’s refusal to sit down and negotiate a balanced budget with both cuts and new revenues.
Comment by PublicServant Wednesday, Jun 15, 16 @ 11:28 am
=== But from my position, this is just a whole lot of stalemate over what likely wouldn’t amount to much “progress” anyway. ===
It’s been like that since Jump Street. It’s never been a fiscal or economic agenda, but an obviously political one.
Remember when the governor released his ROI on his Turnaround Agenda, only to lash out at Rich as a Madigan stooge when he pubished the governor’s own numbers?
The original are below. We’re still waiting on the “revised” projections.
http://www.chicagobusiness.com/article/20160119/NEWS02/160119822/rauners-turnaround-agenda-math-doesnt-add-up
Comment by wordslinger Wednesday, Jun 15, 16 @ 11:31 am
“The biggest potential flaw with Gov. Rauner’s Turnaround Agenda is in this story…”
Actually the BIGGEST flaw is that the only folks who get TA’s is the 1%ers…BTW don’t forget nearly 200 cities have said ‘no thanks” to the reforms BigBrain has in store for them.
Comment by Annonin' Wednesday, Jun 15, 16 @ 11:35 am
Somebody in Kane County can’t count votes?
Comment by Commonsense in Illinois Wednesday, Jun 15, 16 @ 11:39 am
Those corrupt government officials in Kane Co.
Comment by Joe M Wednesday, Jun 15, 16 @ 11:51 am
=== he can’t even count on a majority of a GOP-dominated suburban county board to vote for what amounts to a fantasy resolution. ===
I’m betting he cannot count on a majority of Republican lawmakers to support rolling back prevailing wage and a tax hike.
That is his real problem.
It’s particularly hilarious to have Patti Bellock negotiating a spending plan that everyone admits will require a tax increase.
Spoiler Alert:
Patti Bellock is a No vote on the tax hike.
Comment by Juvenal Wednesday, Jun 15, 16 @ 11:51 am
===- 47th Ward - Wednesday, Jun 15, 16 @ 11:12 am:
Wow, first Kyle McCarter jumps ship and now Kane County?====
You might want to take a drive out to Kane Co. There’s a significant labor presence there, both in residents and in union facilities and halls. A lot of blue collar and union folks moved out there to get more house for the money. I’m not surprised by this result at all.
Comment by A guy Wednesday, Jun 15, 16 @ 11:58 am
Mike Madigan and the Kane County Republicans he controls.
Comment by Precinct Captain Wednesday, Jun 15, 16 @ 12:01 pm
One cannot simply choose to make the Prevailing Wage the minimum wage. The county must be surveyed and then the mode wage on local government projects would prevail. That’s why it’s called the prevailing wage act.
Comment by Pale Rider Wednesday, Jun 15, 16 @ 12:02 pm
That Drew Frasz owns a non-union shop is all you need to know…except for the fact the other five are marginal reps at best. Can’t remember the last time any of them led anything other than a dog on a leash.
Comment by kfc Wednesday, Jun 15, 16 @ 12:07 pm
@Joe, you got it, if you don’t agree with Rauner’s vision for the state you are corrupt. If you are a politician and take money from Rauner or corporate interest it’s all good.
Comment by The Dude Abides Wednesday, Jun 15, 16 @ 12:08 pm
===Change is almost always incremental.===
Except in the world of venture capitalism.
Comment by Cubs in '16 Wednesday, Jun 15, 16 @ 12:09 pm
The biggest flaw in Rauner’s story is where are the $7 billion going to come from?
Over 25% of the current State of Illinois revenue is needed to pay for the Edgar ramp.
Does the public really believe that Rauner can cut $7 billion of State spending?
Does the public believe that Rauner’s turn around agenda will generate $7 billion of new State tax revenue?
When will someone ask Rauner for his numbers behind these fantasies?
The longer it takes to get a budget the more Rauner saves on his personal state taxes.
That $800,000 a year is the only motivation that Rauner wants or needs.
Comment by Chicago 20 Wednesday, Jun 15, 16 @ 12:18 pm
Starting with 20 tall asks and then taking some, even most, “off the table” isn’t compromise. It’s just reality.
Comment by Anonymous Wednesday, Jun 15, 16 @ 12:19 pm
===The longer it takes to get a budget the more Rauner saves on his personal state taxes.
That $800,000 a year is the only motivation that Rauner wants or needs.===
Rauner makes more than $1M per week. Do you really think he’s worried about 800 grand in taxes?
Comment by Cubs in '16 Wednesday, Jun 15, 16 @ 12:48 pm
==Rauner makes more than $1M per week. Do you really think he’s worried about 800 grand in taxes?==
It could be $8 and it wouldn’t make a difference. People who are opposed to taxes are opposed to them no matter how much they are. They have a serious aversion to someone “unworthy” gettin’ somethin’ for nothin’ on their nickle.
Comment by Gruntled University Employee Wednesday, Jun 15, 16 @ 12:52 pm
- Cub’s
Absolutely and without a doubt.
Comment by Chicago 20 Wednesday, Jun 15, 16 @ 1:51 pm
There is no rhyme or reason; it is is not just dollars, but arbitrary work rules and fringe costs depending on how underwater the local local’s benefit funds are. In DuPage, if you are a fence erector east of Route 53 total compensation cost is $62.75 per hour including fringes and you get time and a half after 8 hours or on Saturday. If you are west of route 53 it is $77.58 an hour and you get double time after 8 hours or on Saturday. https://www.illinois.gov/idol/Laws-Rules/CONMED/rates/2015/july/DU_PAGE9.htm
Comment by Put the Fun in unfunded Wednesday, Jun 15, 16 @ 1:53 pm
I agree with Word. It’s political.
If Rauner can reduce union labor, it reduces funding for unions, which reduces funding for the Democratic party, which reduces the number of Democrats.
To Rauner it’s all good.
All the “justification” is just blabber.
Comment by Sir Reel Wednesday, Jun 15, 16 @ 2:22 pm
How does the prevailing wage help workers when they have to give it right back to the state in higher taxes? More taxes for workers comp. because Mike Madigan does not want to reform workers comp. In addition higher project cost means less projects get approved/implemented and workers work less hours.
Comment by Dandy Edward Wednesday, Jun 15, 16 @ 2:24 pm
Higher project costs?
Paying prevailing wages DO NOT result in higher project costs.
Comment by Chicago 20 Wednesday, Jun 15, 16 @ 2:44 pm
Dandy, according to your logic, taxes consume 100% of wage increases.
How does that work with Illinois’ flat income tax?
Comment by Sir Reel Wednesday, Jun 15, 16 @ 2:55 pm
1) Local gov’ts cannot not pass the prevailing wage ordinance
2) As I have noted here repeatedly, the biggest problem with the prevailing wage is IDOL sets the rates for each county (the local just adopt what IDOL says to) even when the rates aren’t actually the going wage. They can vary widely by county for seemingly no good reason.
3) Saying prevailing wage does not increase costs is just foolish. Seriously, advocate for it if you think it is good economic policy, but stop pretending it doesn’t increase costs on nearly every infrastructure project cities and counties contract. That’s just willful ignorance.
Comment by Shemp Wednesday, Jun 15, 16 @ 8:17 pm
Also, someone said you can set prevailing wage as minimum wage. That is absolutely false. You either adopt IDOL’s rates or a local government has to have a study done to disprove IDOL’s rate.
Comment by Shemp Wednesday, Jun 15, 16 @ 8:19 pm
Prevailing wage increases costs. No one with a functioning mind believes otherwise.
Comment by Ron Wednesday, Jun 15, 16 @ 8:41 pm
What I am referring to Sir Reel is prevailing wages create tax increases on your total earnings because it costs the state more dollars to build the project. This includes work rules etc.
Comment by DandyEdward Wednesday, Jun 15, 16 @ 9:13 pm
- Prevailing wage increases costs. No one with a functioning mind believes otherwise. -
Then find the data, Einstein. It might decrease the bid cost, but that’s vastly different than the final or ongoing cost.
Comment by Daniel Plainview Wednesday, Jun 15, 16 @ 11:54 pm
- Ron
Nobody with a functioning mind make statements before doing the research first.
http://cas.umkc.edu/economics/resources/prevailingwagestudy.pdf
Comment by Chicago 20 Thursday, Jun 16, 16 @ 7:54 am
- Shemp
Willful ignorance.
Enlighten yourself.
http://scholarworks.bgsu.edu/cgi/viewcontent.cgi?article=1003&context=construct_mgt_pub
Comment by Chicago 20 Thursday, Jun 16, 16 @ 7:58 am
- Dandy
“Costs the state more dollars to build the project ”
Really?
That’s not what Professor Bruno of the University of Illinois found when he and his colleagues studied the data.
https://news.illinois.edu/blog/view/6367/204680
Comment by Chicago 20 Thursday, Jun 16, 16 @ 8:02 am