*** UPDATE 1 *** Gov. Pritzker met with the Senate Democrats earlier today and I’m hearing it went well. The Senate Democrats’ spokesman just told reporters he believes the minimum wge bill, SB1, will be run on the floor shortly. Looks like the holdouts weren’t able to stop a roll call. Click here for an analysis of the bill.
…Adding… The bill, as amended in committee yesterday, is now up for debate. Click here to watch.
*** UPDATE 2 *** The bill passed with 39 votes. For some odd reason, the Senate President did not vote.
…Adding… I’m told President Cullerton was “watching the roll call” and didn’t vote. Oops. He’s filing a letter now to reflect his intention to vote “Yes.”
*** UPDATE 3 *** IRMA…
“We are disappointed the Senate did not take the time to address ways to lessen the impact of an unprecedented wage hike, particularly on suburban and downstate employers. We will continue to seek a compromise in the House, and we urge legislators to not rush this issue as they consider the implications this will have on employers and employees in their communities,” said Rob Karr, president & CEO, Illinois Retail Merchants Association.
*** UPDATE 4 *** ILGOP…
Did Governor Pritzker have any intention to return to the ‘agreed-bill’ process? On his first major legislative initiative, that answer is a hard no. This is the same failed form of governing that put Illinois in the poor fiscal condition it’s in. Pritzker is ignoring the concerns of Republican lawmakers and business leaders as he attempts to ram through legislation that would nearly double the state’s minimum wage just so he can chalk up a ‘win’ before his budget address, but at what cost?
Pritzker’s minimum wage hike will crush small businesses and will cost taxpayers at least a billion dollars a year once the plan is fully implemented, and that’s not even a complete estimate. Pritzker’s administration has not disclosed the full amount of increased spending his wage hike would require. Pritzker’s reckless budgeting will cost taxpayers and small businesses dearly. It is yet another Pritzker proposal that will bankrupt Illinois.
[ *** End Of Updates *** ]
* Last night on Illinois Public Radio…
llinois lawmakers may be slowing the process to increase the minimum wage to $15 an hour by 2025. The proposal was expected to be called for a vote and passed out of the Senate as soon as Thursday.
State Sen. Kim Lightford (D-Maywood), sponsor of the plan, said Gov. J.B. Pritzker wanted the bill approved in time for his budget address on Feb. 20. […]
For that to happen, the Senate would need to approve the plan before they leave Springfield this week. With ongoing negotiations, Lightford is not sure that will happen.
“I think anything can still happen around here,” said Lightford. “I think there is some conversations that are definitely going to happen this evening. I don’t know if they’ll yield returns enough for me to move this bill forward tomorrow.”
* Capital News Illinois…
Gov. J.B. Pritzker has said he would like the minimum wage bill, his first major policy push, approved by the time he gives his budget address on Feb. 20. But Senate Majority Leader Kimberly Lightford, a Maywood Democrat and the bill’s lead sponsor, exhibited a more cautious tone after a near two-hour private caucus of Senate Democrats which preceded the Executive Committee hearing.
“If we move the needle (in negotiations) tonight and it’s something that we can take back to the caucus and have a conversation and caucus is comfortable with it, then possibly (it could be voted on Thursday),” Lightford said. […]
The Illinois Restaurant Association, which represents 27,000 restaurants employing 577,000 people across the state according to its president Sam Toia, testified as a proponent of the bill while noting it’s a “tough pill to swallow.”
Toia said the inclusion of a tip credit, which requires employers to pay only 60 percent of the minimum wage to tipped workers, allowed the IRA to support the wage increase.
Subscribers know more.
* IRMA…
“[Yesterday’s Senate Executive Committee] vote was carried out without the concerns of the business community in mind, particularly retailers in downstate and suburban communities who are less able to absorb such a dramatic increase in labor costs compared to their counterparts in the city of Chicago. As we try to strike a balance that will benefit workers and employers across the state, the business community has proposed a regional plan to increase the state’s minimum wage based on the economic realities in different parts of the state. We urge lawmakers to pause and think about the local employers in their districts while working toward a solution that will benefit everyone,” said Rob Karr, president & CEO, Illinois Retail Merchants Association.
* IMA…
“Increasing the minimum wage for Illinois businesses by 82 percent will have a detrimental impact on employers across the state,” said Mark Denzler, president and CEO of the Illinois Manufacturers’ Association. “The IMA and the business community have offered real alternatives to help mitigate the negative impact on job creators in Illinois. This includes a minimum wage based on geography, because the cost of living in downstate Illinois is significantly less than it is in the city of Chicago. We’ve also asked for a longer implementation of the minimum wage increase and more robust tax credits for small employers. Lawmakers should give serious consideration to these ideas instead of rushing through legislation that makes it harder for manufacturers to operate.”
* One Illinois…
A statewide hike in the minimum wage to $15 an hour would have the greatest impact on earnings outside Chicago, according to a new study released Tuesday.
In some ways, that’s not surprising, as Chicago has already moved to raise its minimum wage to $13 over a five-year span set to be completed this summer. But according to “The Regional Impacts of a $15 Minimum Wage in Illinois,” released Tuesday by the Illinois Economic Policy Institute, a $15 minimum wage would still raise annual earnings by $5,000 for low-income workers in the Chicago area, and would have an even greater impact on other metropolitan areas including central Illinois, Rockford, and the so-called Metro East area near St. Louis.
The study projects that a $15 minimum wage would hike annual earnings $8,000 in central Illinois around Springfield, and $7,000 in east-central Illinois including Champaign-Urbana and around Rockford. Wages would rise $6,000 in Metro East.
The study suggests: “These higher incomes … would boost consumer spending at local retail stores, restaurants, and small businesses — offsetting any initial drop in employment or hours.”
It cites how four states have already adopted a $15-an-hour minimum wage, including New Jersey just last week, while 19 states overall moved to increase their minimum wages in some way with the new year. Illinois residents already voted in a 2014 advisory referendum to support a hike in the minimum wage, with 83 of the state’s 102 counties voting in favor.
“Working-class families in Illinois are falling behind their peers in other states,” said study co-author and ILEPI Policy Director Frank Manzo IV. “A $15 minimum wage would boost earnings for more than 1.4 million adult workers across Illinois.
- Anonymous - Thursday, Feb 7, 19 @ 9:26 am:
That’s good because minimum wage increases have been proven to add jobs.
http://cepr.net/blogs/cepr-blog/2014-job-creation-in-states-that-raised-the-minimum-wage
- Stormfield - Thursday, Feb 7, 19 @ 9:37 am:
==Anon @ 9:26==
Careful now. That blog post does not in any way offer “proof” and expressly states that “this kind of simple exercise can’t establish causality.”
It is a very very simple one-year comparison of percentage job growth from 5 years ago for states with a minimum wage bump. It doesn’t do anything to control for other variables (job increases prior to the wage bump, amount of wage increase, timing/expectations for additional increases, changes over time, etc.). It is not, and does not purport to be, a proper experiment or even begin to address causality.
No judgement on actual effects. The literature on minimum wage effects is mixed, and wage increases of this size are too new for us to draw meaningful conclusions. But it is incredibly irresponsible to offer a blanket statement that “minimum wage increases have been proven to add jobs.”
- Midstate Indy - Thursday, Feb 7, 19 @ 9:37 am:
Dear legislators, if you fancy a geographically tied minimum wage I would like to see the geographically differentiated pay scale proposal for ILGA members.
- Steve - Thursday, Feb 7, 19 @ 9:40 am:
If the $15 minimum wage is successful in Illinois , then Venezuela should take note. Just raise your minimum wage to $15 an hour and reap the benefits of “expanded purchasing power”. This go be cure for poverty and low wages.
- Steve - Thursday, Feb 7, 19 @ 9:41 am:
My last sentence should read ” This could be the cure for poverty and low wages.”
- Downstate - Thursday, Feb 7, 19 @ 9:41 am:
A “one-size-fits-all” approach is woefully short sighted. There are parts of Illinois where the cost of living is more than 60% less than others.
Hardest hit will be the non-profits that try to exist in the toughest areas of the state. They simply can’t afford this.
China took an interesting approach to this issue years ago. They were faced with factories and employees all flocking to the coastal cities. In an effort to bring prosperity to the inland regions they created minimum wage zones so that the closer one was to the coast, the higher the minimum wage. Worked pretty darn well.
- Grandson of Man - Thursday, Feb 7, 19 @ 9:52 am:
It should not be a problem to take a little more time, if necessary, and get a better bill.
But wages need to be raised. We can’t have a state in which people like Rauner have their incomes skyrocket by tens of millions of dollars and have wage stagnation for lower-income workers.
- Henry Francis - Thursday, Feb 7, 19 @ 9:55 am:
We’ve tried “trickle down” economics for a few decades now. And see what that got us.
Why not give “trickle up” a chance?
- wordslinger - Thursday, Feb 7, 19 @ 9:57 am:
–The Illinois Restaurant Association, which represents 27,000 restaurants employing 577,000 people across the state according to its president Sam Toia, testified as a proponent of the bill while noting it’s a “tough pill to swallow.”–
For the sake of accuracy, on this issue, the IRA may represent 27K restaurants, but they certainly do not represent 577K restaurant employees.
Does the IRA actually have 27K restaurant members? According to their website, they appear to be bankrolled by a handful of big restaurant vendors.
https://www.illinoisrestaurants.org/page/CorporateSponsors
- curtis - Thursday, Feb 7, 19 @ 10:00 am:
===Dear legislators, if you fancy a geographically tied minimum wage I would like to see the geographically differentiated pay scale proposal for ILGA members.===
Yes, then can we get scaled pay for state workers?
Money goes a lot further in Springfield than Chicago.
- wordslinger - Thursday, Feb 7, 19 @ 10:00 am:
–If the $15 minimum wage is successful in Illinois , then Venezuela should take note.–
Congratulations on the first incoherent Venezuela reference. Breakfast with Jack Daniels this morning?
- My New Handle - Thursday, Feb 7, 19 @ 10:01 am:
An increase in minumum wage could also generate more revenue for state operations.
- Anonymous - Thursday, Feb 7, 19 @ 10:09 am:
Grandson, give it up on Rauner’s income. The dude worked to get it, some people become rich.
Some become filthy rich inheriting money.
- Rabid - Thursday, Feb 7, 19 @ 10:15 am:
A win-win reform, more income taxes, less dependency on government assistance
- muon - Thursday, Feb 7, 19 @ 10:16 am:
My New Handle - CapFax linked to a couple of documents earlier this week that compared the increased revenue from taxes to the additional costs to the state through wages and social services. The extra revenue does not cover the costs. However, up through $11/hour the shortfall is not that large and could be handled in the budget.
I suggested then that the fiscally prudent plan is to pass the first part of the minimum wage getting to $11/hour by 1/1/2021. Then tie the remaining increase to the passage of the graduated income tax constitutional amendment in 2020. That allows the budget for FY 22 to use additional income taxes to offset costs from the minimum wage, and protects the state budget if the amendment fails. It also gives business groups the ability to continue discussions on the form of the minimum wage beyond $11/hour over the next two years. If there is some agreement, there can be a trailer that addresses changes to the minimum wage implementation beyond 1/1/2021.
- Illinois Resident - Thursday, Feb 7, 19 @ 10:23 am:
-Grandson, give it up on Rauner’s income. The dude worked to get it, some people become rich.-
He should pay more tax. Not hard is it.
- Arsenal - Thursday, Feb 7, 19 @ 10:25 am:
==The dude worked to get it, some people become rich.==
Except that it skyrocketed while he was Governor and voluntarily not taking a salary from the state…
- Anonymous - Thursday, Feb 7, 19 @ 10:25 am:
“Grandson, give it up on Rauner’s income. The dude worked to get it, some people become rich.”
Barry Saacks saw that “work”, up close and personal
https://capitolfax.com/2014/09/23/the-strange-case-of-barry-saacks/
- Grandson of Man - Thursday, Feb 7, 19 @ 10:30 am:
“Grandson, give it up on Rauner’s income. The dude worked to get it, some people become rich.”
As long as people make millions or billions of dollars and push down or keep down the wages of middle class and lower-income workers, or fight to do that, I will never give it up.
- Stuntman Bob's Brother - Thursday, Feb 7, 19 @ 10:33 am:
==A win-win reform, more income taxes, less dependency on government assistance==
It’s logical that increasing wages will add to the tax rolls and move people off public aid. But there is a flip side to that, state expenditures for services rendered will also go up, from purchased services from vendors to payments to non-profits. I’m hoping COFGA or someone will present a detailed analysis prior to a decision being made. I have to wonder if this will move money (geographically) around the state, and if so, what region would gain and which would lose? This may have the effect of moving money downstate, since they may have more people currently working at lower wage scales than the Chicago area.
- Ducky LaMoore - Thursday, Feb 7, 19 @ 10:37 am:
===then Venezuela should take note.===
People still don’t understand the difference between socialism and capitalism. Socialism puts the government in-charge of production while capitalism puts the people in charge of production. Just because a great many of us feel that capitalism should have a set of rules (minimum wage, progressive taxes, quality standards etc) does not make us socialists.
- Oswego Willy - Thursday, Feb 7, 19 @ 10:38 am:
===… give it up on Rauner’s income. The dude worked to get it, some people become rich.===
How many jobs did Rauner create.
He couldn’t name a single one.
- Anonymous - Thursday, Feb 7, 19 @ 10:42 am:
Well Grandson, we will see how your guy does, somebody worth roughly 3.2 Billion bucks—and pull toilets out of his house to save real estate taxes so some middle class people pick up the tab.
Oh, and didn’t he use non-union labor for work on his homes and watched workers picket the Hyatt because of wage issues??
- Arsenal - Thursday, Feb 7, 19 @ 10:47 am:
==Well Grandson, we will see how your guy does==
He’s not going to veto a minimum wage hike that hits his desk, so he’s already ahead.
- Illinois Resident - Thursday, Feb 7, 19 @ 10:49 am:
Anon - 10:42 AM - Maybe look at Pritzker’s polices. Progressive income tax, cannabis legalization, higher minimum wage. Sounds good to me. What did Rauner want to do again?
- City Zen - Thursday, Feb 7, 19 @ 10:50 am:
==A win-win reform, more income taxes, less dependency on government assistance==
I never understood why the Fight for 15 folks never advertised this pretty compelling case. Unless…
- Oswego Willy - Thursday, Feb 7, 19 @ 10:50 am:
===Well Grandson, we will see how your guy does, somebody worth roughly 3.2 Billion bucks—and pull toilets out of his house to save real estate taxes so some middle class people pick up the tab.===
“Only Nixon could open China”
Agreed, Pritzker isn’t vetoing a minimum wage bill that gets to his desk.
What gets to his desk is still up for discussion.
- curtis - Thursday, Feb 7, 19 @ 10:57 am:
==How many jobs did Rauner create.
He couldn’t name a single one.==
He did name some created jobs for Deputy Gov./Acting DCEO director/Comptroller Munger.
- Midstate Indy - Thursday, Feb 7, 19 @ 10:57 am:
@curtis 10:00am: The concept of typing pay to locality disregards the entire concept of the original FSLA minimum wage concept, which was to ensure that each worker would obtain a minimum wage regardless of job/location. The value of an hour of work shouldn’t be valued differently in Champaign vs Chicago. The class division idea is exactly why a minimum wage is key - raise the bottom, don’t drag down (what’s left of) the middle.
- Grandson of Man - Thursday, Feb 7, 19 @ 10:59 am:
In regards to keeping with this thread, a minimum wage increase is a big policy change with huge impact, as is legalizing marijuana. If a little more time is needed to maybe amend the bill for regional wage increase variations, it’s not a bad idea to look into it.
- Lucky Pierre - Thursday, Feb 7, 19 @ 11:13 am:
Rauner didn’t create a single job during his long career in the private sector?
Brilliant, non partisan analysis as always OW.
Who will be the new scapegoat for the next four years responsible for all of the dysfunction in Illinois politics?
- Anonymous - Thursday, Feb 7, 19 @ 11:14 am:
Does this mean we should stop tipping for restaurant service when this is law? In Australia they have high minimum wage and you are not expected to tip.
- Grandson of Man - Thursday, Feb 7, 19 @ 11:25 am:
Pritzker’s meeting now with Senate Dems to get this passed. It’s reported he shouted, “Don’t give me a [expletive] problem.
- Mr. Smith - Thursday, Feb 7, 19 @ 11:25 am:
I know that this is creating a lot of concern in the library community, especially with small rural libraries. It’s less an objection to the concept of an increase than wondering where the money will come from to pay for it. Since local libraries rely on taxes for much of their funding, and where tax caps are in place, the only alternative is to either reduce hours of operation or reduce staff (or both).
This is something that needs to happen - but it needs to happen thoughtfully and not in time to give someone a political win.
- Anonymous - Thursday, Feb 7, 19 @ 11:33 am:
Misstate Indy, that makes very little sense. The cost of living downstate is like 75% of Chicago metro. A $15 minimum wage will not help downstate at all.
The City of Seattle has some of the most expensive real estate in the country. Comparing that to Peoria will not turn out well for Peoria.
- cdog - Thursday, Feb 7, 19 @ 11:35 am:
If Chicago and Cook have already passed ordinances that regionalize minimum wages to reflect COL in those areas, why not pass the state wide minimum that reflects cost of living in the rest of the state?
(I’m ready for this to be done. I am working on a business valuation and need these numbers to supply the broker to set a sale price.)
- Demoralized - Thursday, Feb 7, 19 @ 11:42 am:
==Brilliant, non partisan analysis==
Yes, because your commentary is full of non-partisan analysis. Not.
==Who will be the new scapegoat for the next four years==
Well I would expect it would be the same victimhood from you as the last 4 years.
- Grandson of Man - Thursday, Feb 7, 19 @ 11:47 am:
It’s being debated on the floor now. This is a gradual increase, over several years. We’re not trying to raise the wage overnight and create that kind of economic shock. But some people are going nuts opposing this. For me context means a lot—that’s why I keep bringing up the huge tax cuts for the biggest corporations. Let’s give the minimum wage folks a raise.
- Oswego Willy - Thursday, Feb 7, 19 @ 11:47 am:
===Rauner didn’t create a single job during his long career in the private sector?
Brilliant, non partisan analysis as always===
(Sigh)
The context;
Commenter decides Rauner…
===… give it up on Rauner’s income. The dude worked to get it, some people become rich.===
The post is about the minimum wage, jobs, and a discussion about job creation.
Rauner has 5 years to discuss any (one) job he created. Rauner never did.
Rauner being rich and Rauner understanding the impact of job creation as a fulcrum to compare with Pritzker who created jobs, according to actual people willing to be in ads to say so…
That’s not partisan, that’s just honest to Rauber.
Rauner is wealthy, but created no jobs with his wealth, never pointing to a single one.
- Techie - Thursday, Feb 7, 19 @ 11:48 am:
Very glad to see quick movement on this, but I hope that they make the increase happen faster. By the time 2025 rolls around and the full $15 is scheduled to take effect, no doubt inflation will have increased and it won’t have as much impact.
Businesses might be scared, but in the end it will be beneficial for most.
- Oswego Willy - Thursday, Feb 7, 19 @ 11:48 am:
===Who will be the new scapegoat for the next four years responsible for all of the dysfunction in Illinois politics?===
Governors own.
See the post about Sterigenics.
You know about Sterigenics, Rauner does too.
- Giroud - Thursday, Feb 7, 19 @ 11:59 am:
Techie, highly unlikely this does much in metro Chicago. But it is virtually guaranteed that this will hurt downstate.
- wordslinger - Thursday, Feb 7, 19 @ 12:03 pm:
–Rauner didn’t create a single job during his long career in the private sector?–
He was asked that question directly by Charles Thomas in a 2014 debate and could not provide one example.
So take it up with Bruce.
- Blue Dog Dem - Thursday, Feb 7, 19 @ 12:06 pm:
I do believe this helps many folks. We will see soon enough if there is a downside.
- Giroud - Thursday, Feb 7, 19 @ 12:09 pm:
Blue Dog, downstate the likely result will be fewer jobs and fewer hours worked. Carbondale is not Seattle.
- Lester Holt’s Mustache - Thursday, Feb 7, 19 @ 12:19 pm:
==Blue Dog, downstate the likely result will be fewer jobs and fewer hours worked.==
Bad news for the suburban Chicago area, downstate will need to mooch even more tax dollars from them.
- SSL - Thursday, Feb 7, 19 @ 12:23 pm:
I rarely agree with Grandson, but in this case taking appropriate time to get this right for all areas of the state makes sense. There will be positive and potential negative impacts from a statewide minimum wage bill. Unwinding a clock is difficult. Get it as close to right as you can the first time.
- wondering - Thursday, Feb 7, 19 @ 12:33 pm:
I guess I still don’t get minimum wage opposition. Seems like prices would have to be raised uniformly and no business would be at a competitive advantage. The playing field would be level. I don’t hear consumers squawking about the minimal price adjustments.
- Just Sayin ... - Thursday, Feb 7, 19 @ 12:38 pm:
Interesting to see the Senate GOP got their fiscal conservative voice back and are now concerned about the budget. Where have they been these last four years when Rauner wasted millions on government contracts with nothing to show for it?
- Rich Miller - Thursday, Feb 7, 19 @ 12:42 pm:
===The playing field would be level===
In Illinois, yes. But we do have long borders with large population centers just across state lines.
- Grandson of Man - Thursday, Feb 7, 19 @ 12:45 pm:
It passed with 39 votes. Good close by Sen. Lightford, talking about stagnant wages and rising cost of living.
- Illinois Resident - Thursday, Feb 7, 19 @ 12:45 pm:
Giroud - You are spewing talking points that are incorrect. Minimum wage workers have been getting hosed for years all to the benefit of employers and business owners. If a business cannot afford to pay a worker a fair wage, they should close shop and let other more qualified business owners take their place.
- Giroud - Thursday, Feb 7, 19 @ 12:48 pm:
As a DHS Caseworker I can tell you I budget paystubs all day long of our fellow Illinoisans, folks who are working as hard as they can. This going to help them so much. It really will remove huge barriers to self sufficiency. And that’s a great thing. People want to make it financially. Let’s take the last case I did
Female 35 making 9.00 an hour. 38 hours a week
That’s 1470.60 a month (weekly wage x 4.3)
17647.20 a year
Now with 15
2451 a month
29,412 a year
Can you imagine the huge impact of that?
That’s a fellow Illinoisan
Doing so much better
- Stuntman Bob's Brother - Thursday, Feb 7, 19 @ 1:07 pm:
==Can you imagine the huge impact of that?
That’s a fellow Illinoisan
Doing so much better==
Unless, that is, she loses her job completely. Time will tell.
What does this person do for a living?
I hope it’s not something that can be easily farmed out to somewhere else.
- MG85 - Thursday, Feb 7, 19 @ 1:08 pm:
==to help mitigate the negative impact on job creators in Illinois.==
This is where progressives should push back. Not a single business person ever created a job. Consumers are the job creators and job sustainers.
The era of business owner protections over worker’s rights needs to end. Our country, our state, and many of our communities have extreme wealth disparities not through some magic but through highly motivated barons who seek to enrich themselves at the behest of labor.
- CapnCrunch - Thursday, Feb 7, 19 @ 1:22 pm:
“If a business cannot afford to pay a worker a fair wage [$15.00/hour], they should close shop and let other more qualified business owners take their place.”
Using that logic, should someone who is incapable of producing an output worth $15.00 per hour leave the labor force and let someone more capable do the work?
- Just Me 2 - Thursday, Feb 7, 19 @ 1:25 pm:
Why the rush to pass a bill that won’t take effect for years? Slow down. Take your time. Don’t push this through in a matter of days just because you want to. That’s how bad legislation gets passed (ie parking meter lease).
- Anonymous - Thursday, Feb 7, 19 @ 1:28 pm:
I am excited to see this develop, but also nervous that some employees may be greeted with layoffs instead of raises if/when it passes.
- RonnyRent - Thursday, Feb 7, 19 @ 1:39 pm:
Could the State of Illinois now establish a Maximum Square Foot Rental fee on all state agencies’ office rentals? Same fee throughout the whole state BUT based on Springfield’s standard of living(NOT Chicago’s)? After all, Springfield is the state capital.
- Perrid - Thursday, Feb 7, 19 @ 1:41 pm:
The IRMA and the ILGOP seem to not be satisfied with the substantial tax credits. The State is almost paying them to pay their employees well, and it amounts to a hill of beans?
- Oswego Willy - Thursday, Feb 7, 19 @ 1:46 pm:
===will crush small businesses and will cost taxpayers at least a billion dollars a year once the plan is fully implemented, and that’s not even a complete estimate.===
So you send out a release, a hyperbole release that has in it…
“and that’s not even a complete estimate.”
What does that mean? You have no idea what you’re saying?
===…that will bankrupt Illinois.===
States can’t go bankrupt, ILGOP. Do better. This sounds ridiculous.
You’re welcome.
- wordslinger - Thursday, Feb 7, 19 @ 2:14 pm:
–I am excited to see this develop, but also nervous that some employees may be greeted with layoffs instead of raises if/when it passes.–
Under the bill, the first bump to $9.25 doesn’t happen til Jan. 1, 2020. And then small businesses are eligible for tax credits, to boot.
Gradual and predictable.
- wondering - Thursday, Feb 7, 19 @ 2:15 pm:
Well Rich, I get your point, but…The Illinois employers would get first dibs on motivated and productive employees…and I have to wonder how much of an issue it would be in large population centers. Out of staters could tell their employers match it or I will work in llinois. And lets not let the tail wag the dog on those few instances.
- California Guy - Thursday, Feb 7, 19 @ 2:17 pm:
Geographically tied minimum wage was a compromise met here in California. It mitigated the negative effects of the increase, especially in rural areas with relatively lower costs of living.
The Governor here signed it, despite literally stating that the minimum wage increase didn’t make economic sense while more effective anti poverty measures were on the table (State EITC). New Governor got elected and immediately pushed an increase in EITC - provides direct increase in purchasing power for poor residents while mitigating the negative impacts on employers/business competitiveness.
- California Guy - Thursday, Feb 7, 19 @ 2:24 pm:
@Wondering
You’re only considering state domestic competition. Manufacturers compete with companies in other states and other countries. Further, restaurants raising prices to cover wage increases the likelihood of people seeking alternatives, like eating at home.
- wondering - Thursday, Feb 7, 19 @ 2:50 pm:
So, California, you think out of state manufactures who pay less then $15 an hour are so numerous that we should engage in a race to the bottom? And.other countries pay so close to current minimim wage that this would tip the scale? Sorry, spare me your crocodile tears for job loss…I dont buy it.
- Blue Dog Dem - Thursday, Feb 7, 19 @ 2:51 pm:
BTW. My prediction. IDNR director named shortly after tough house vote on min wage.
- wondering - Thursday, Feb 7, 19 @ 2:55 pm:
Oh, California, get off it. Google price of a hambuger as impacted by minimum wage. Your arguement is bunk.
- Wondering - Thursday, Feb 7, 19 @ 3:00 pm:
Tax any employer whose employees qualify for food stamps and other welfare programs. Tax payers should not be subsidizing dead beat employers.
- Giroud - Thursday, Feb 7, 19 @ 3:04 pm:
wondering, employers will likely reduce payroll downstate, so prospective employees will not be have that power.
This will likely have little to no effect in Metro Chicago, I agree.
- West Town TB - Thursday, Feb 7, 19 @ 3:21 pm:
When you raise the cost of something, expect the demand for it to go down. That’s economics 101. But if you only raise the cost a little, the demand may not change much. If you raise it a lot, then the demand will likely go down a lot. The question is whether the change to $15/hr statewide is a lot or a little. The answer is probably complex. It’s worth it if few people lose their jobs. It’s not if we walk into low skill service businesses and are ordering everything on a screen. I will say that in retail establishments in Chicago, self check out with one person managing multiple lanes is commonplace. Did the Chicago min wage do this? Who knows.
- BenFolds5 - Thursday, Feb 7, 19 @ 3:22 pm:
I am confused how you can make this geographically different for the state? Look at the collar counties of Chicago school assistant openings. A vast majority are under $15 an hour. Look at Southern Illinois. Same. Cost of living is night and day but the funds to pay have a State subsidy. Does a carefully crafted bill make sure Southern Illinois Schools get less funding because of cost of living? Hopefully, they figure out all of the implications. It’s Illinois, so I doubt it.
- Demoralized - Thursday, Feb 7, 19 @ 3:40 pm:
==self check out ==
That’s been the trend for years. Go to any grocery store and it seems like there are less and less human beings available to serve you. McDonald’s has been moving to kiosks in store. You can now order via an app in a lot of places and drive up and have them bring it to you.
- Demoralized - Thursday, Feb 7, 19 @ 3:46 pm:
==Did Governor Pritzker have any intention to return to the ‘agreed-bill’ process?==
Not likely on this issue. I’m sure he may have considered some input but it’s hard to have an agreed process when you have a stated intent of opposing an increase in the minimum wage. The Governor said all along he wanted $15. The Republicans didn’t want that. So I’m not sure what agreement you could ever come to.
- smbusmn - Thursday, Feb 7, 19 @ 3:56 pm:
Let’s not forget the increased cost of workers comp. goes up with wages ours is $8.00/$100 for some and as high as $14.00/$100 for other employees
- Giroud - Thursday, Feb 7, 19 @ 4:00 pm:
It is true that the trend has been to eliminate jobs through automation. This will only make things worse, especially for Downstate Illinois where the cost of living is probably at least 25% less than metro Chicago. Indiana, Kentucky, Wisconsin, Iowa and Missouri all have significantly lower minimum wages than Illinois. Employers will not look to expand downstate with a 50% higher wage structure.
- Blue Dog Dem - Thursday, Feb 7, 19 @ 4:00 pm:
I am not smart enough to use google and sure as heck not smart enough to self check out.
- Lester Holt’s Mustache - Thursday, Feb 7, 19 @ 4:03 pm:
==self check out ==
What a dumb argument. You act like businesses wouldn’t be rushing to include automated kiosks and self-check out lanes in their business models if the minimum wage was kept low. These CEO’s aren’t in business to give people jobs, they’re in business to get as wealthy as they possibly can. IL could lower the minimum wage to $1, it wouldn’t make any difference. Go anywhere in the Deep South, where there is no state minimum wage - there’s self-checkout lines at the grocery store, and automated kiosks at the fast food places just like in Chicago
- wordslinger - Thursday, Feb 7, 19 @ 4:31 pm:
–Indiana, Kentucky, Wisconsin, Iowa and Missouri all have significantly lower minimum wages than Illinois.–
Missouri’s minimum wage is higher than Illinois, and is scheduled to keep rising through 2023.
The other bordering states are at the federal rate of $7.25, but there are live proposals to increase them gradually over the years, similar to what’s being considered in Illinois.
Make an effort to inform yourself beyond canned, pop-up book, Econ 101 talking points.
This action isn’t being taken in a vacuum. It’s a national movement and all but the most reactionary states will have to deal with it.
The Mississippi economic development model has been proven not to cut it.
- Blue Dog Dem - Thursday, Feb 7, 19 @ 4:45 pm:
Shout out to Ford. Thanks. I was losing faith.
I don’t disagree that other states may see an improved min wage. It is vital that any and all trade deals reflect fair consideration when it comes to hourly/daily wages.
- Anonymous - Thursday, Feb 7, 19 @ 5:02 pm:
“Further, restaurants raising prices to cover wage increases the likelihood of people seeking alternatives, like eating at home.”
Meanwhile people making more money per hour are more likely to go out to a restaurant more often.
- West Town TB - Thursday, Feb 7, 19 @ 8:26 pm:
==What a dumb argument==
Perhaps, but you cannot put your head in the sand and pretend that increasing the cost of a good, in this case labor, will not impact the demand for that good.
Perhaps the benefits far outweigh the costs. I hope they do. But I fear they won’t.
- Anonymous - Thursday, Feb 7, 19 @ 8:42 pm:
Democrats and labor unions support the Illinois Prevailing Wage Act that sets - get this - different wages based on geography. Why should a laborers or operating engineer get paid 30 percent less in Decatur than Chicago?
- Anonymous - Friday, Feb 8, 19 @ 5:37 am:
“Perhaps, but you cannot put your head in the sand and pretend that increasing the cost of a good, in this case labor, will not impact the demand for that good.”
Perhaps but you cannot put your head in the sand and pretend that more money in the hands of people means they can buy more things, thus increasing demand.
- Anonymous - Friday, Feb 8, 19 @ 6:43 am:
“Why should a laborers or operating engineer get paid 30 percent less in Decatur than Chicago?”
Laborers and operating engineers make minimum wages? Who knew?
- Anonymous - Friday, Feb 8, 19 @ 7:50 am:
Hmm, some on the left supporting supply side economics and others don’t, interesting.
So, it is good to increase real estate taxes, sales taxes and state income taxes to help pay pensions(and take a lot of money from the pockets of consumers) and it is also good to increase costs on businesses so workers will have more $ in their pocket to help the economy. Got ya.
Business has 25 employees who make $10/hour working 40 hours per week. Annual payroll is $520,000 plus taxes. At $13/hour payroll goes to $676,000 plus more taxes and at $15/hour payroll zooms to $780,000 plus even more taxes.
- Anonymous - Friday, Feb 8, 19 @ 8:04 am:
Payroll increase yes, but more people making more money demanding more goods and services.
And more people making more money so they are paying more taxes and using the social safety net less, meaning more taxes can go to other things. Like pensions. And pensioners buy things too.
- Anonymous - Friday, Feb 8, 19 @ 8:18 am:
Except for the one bug—High performers will get jobs, average and below average performers(a lot of people) will struggle to find and keep work—good likelihood unemployment goes up.
And when recessions happen, ……….look out.
- Anonymous - Friday, Feb 8, 19 @ 8:38 am:
Why workers struggle to find more work when
1. More people will be demanding more goods and services due to more people with increased purchasing power.
2. Less people on the social safety net frees up more public spending for agencies that have been starved of workers.
- City Zen - Friday, Feb 8, 19 @ 8:45 am:
New record: Seven anonymous comments in a row
- Honeybear - Friday, Feb 8, 19 @ 8:55 am:
I stand with workers
and all Illinoisans
desire to be treated with dignity
to earn a fair wage
for a fair days work.
NOT
a businesses seeming
Right
to exploit workers
for the profit
and privilege
of a few.