House approves minimum wage ballot question

By Jamey Dunn 

The House passed legislation that would allow voters to weigh in on the state’s minimum wage.

House Bill 3814 would place a question on the November general election ballot asking voters if the state’s minimum wage for workers over 18 years old should be raised to $10 an hour by 2015. Democratic legislative leaders and Gov. Pat Quinn back an increase, but House Speaker Michael Madigan said last month that he did not have the vote to pass one. “It became apparent that there were some significant differences in opinion regarding this issue,” Madigan said on the House floor Tuesday. The referendum would not be legally binding, making it little more than a poll of voters on the issue. However, Madigan said that the results of a ballot questions could provide supporters with “evidence” that they could use to get an increase passed in the future. “It’s clear that we need to do more to help reduce economic inequality,” he said. “There’s just no way to support a family on a minimum wage of $8.25 an hour.” 

Senate President John Cullerton has said that he has the support to pass a wage increase in his chamber, so it is likely that the ballot question would pass in the Senate. Quinn has repeatedly called for an increase, so it seems probable that he would sign the bill. Also, such a ballot question might help with Democratic get-out-the-vote efforts in November— especially considering that the national party and President Barack Obama have been focusing on the issue recently.

Republicans said that a minimum wage increase could hurt job growth in the state. Some argued that lawmakers were shirking their responsibility by putting the question to voters. “Folks, do we really want to become California? The California legislature can’t make a tough decision without saying, ‘Oh, we’ve got to put it on the ballot,’” said Rep. David Harris “We, the legislature, are supposed to decide on these tough public policy issues.” However, a group of Republicans from both chambers introduced legislation to include an advisory ballot question about a proposed extension of the current income tax rates. “We’re asking the Democrat majority, ‘Before you break your promise and make your job-killing tax hike permanent, why not ask the people how they feel,” said Palatine Republican Sen. Matt Murphy. When the proposal came up on the floor during the debate over the minimum wage question, Madigan said, “On this side of the aisle, we’re working our way through the question of extending the income tax increase.” Madigan says he is lobbying House Democrats to extend the current tax rates, which are scheduled to begin stepping down next fiscal year. He told reporters yesterday that the plan is “significantly” short of the support needed to pass.

What to watch: legislation edition

By Jamey Dunn

With three weeks left in the regular session lawmakers have plenty of issues to consider. The House is expected to start taking budget votes this week, but Democratic leaders in the chamber have yet to secure the support needed to approve an extension of the current tax rates. Meanwhile, lots of legislation will begin to fly out of each chamber as deadlines for passage approach. Here are some measures to watch for:

Minimum wage increase 
A proposal to incrementally increase the state’s minimum wage from $8.15 an hour to $10.65 an hour by 2016 has the support of Gov. Pat Quinn and Senate President John Cullerton. Sen. Kimberly Lightford, a Maywood Democrat, said earlier this year that she had been working with business groups on Senate Bill 68 to try and make it more palatable. But she will likely never be able to get business leaders to remain neutral on the bill, let alone support it. Cullerton says that the bill has the support to pass in the Senate. House Speaker Michael Madigan said recently that he did not have to votes to pass the bill in his chamber, but that could change as end of session deals are worked out. The proposal currently does not have a house sponsor.

Republican Sen. Jim Oberweis, who is from Sugar Grove, has proposed increasing the minimum wage to $10 over three years. But the increase in his proposal, SB 2004, would only apply to workers who are 26 or older. Oberweis is challenging Democratic U.S. Senator Dick Durbin. Oberweis has only filed a handful of other bills, which are mostly related to increasing speed limits and allowing car sales on Sundays. It seems that politics might be a factor in his decision to weigh in on this national issue. 

Revenge porn 
There are two bills, one originating from the Senate and once from the House, that would make the it a crime to post explicit photographs or video of someone online without their permission. Sponsors Highwood Democratic Rep. Scott Drury and Democratic Sen. Michael Hastings, who is from Orland Hills, are reportedly working to iron out the differences between both bills. If they can come to an agreement, it seems likely that the measure would be approved by the General Assembly. Both House Bill 4320 and SB 2694 passed in their respective chambers with overwhelming majorities.

Rape statute of limitations 
A proposal that would start the time for the statute of limitations on sexual assault cases at the point when a rape kit is processes could get a hearing in a House committee tomorrow. Currently, the countdown on the statute of limitations begins at the time of the assault. The legislation comes in response to a recent backlog in rape kits. At one time the Illinois State Police had more than 4,000 untested kits. The backlog has since been cleared. The bill is SB 2609.

Smoking ban on campus 
SB 2202, which would ban smoking on public college campuses is positioned for a floor vote in the Senate. The measure would apply to all university property and would let universities decide what the penalty would be for those who violate the ban. Opponents to the proposal argued that smoking policy decisions should be left to university trustees. The House approved the bill in April. 

Regulation of ride-share startups
A hotly contested proposal to regulate ride-sharing startups, such as Uber and Lyft, could come up for a vote in a Senate hearing tomorrow. HB 4075 passed in the House in April. Ride-sharing companies link passengers up via their smartphones with drivers, who use their own vehicles. But the well-regulated taxi industry claims that ride-sharing companies and drivers are getting around the cost of doing business and skirting safety measures and inspections. Opponents to strict regulations argue that they would stifle a new and innovative business model.

Medical marijuana for epilepsy
SB 2636, would allow children with epilepsy access to marijuana as a treatment under the state’s medical cannabis pilot program. Some families have found that a liquid form of the drug helps control the disease in children with frequent seizures. Parents say marijuana oil has helped their children, who may have hundreds or thousands of seizures a day, to cut the number down to just a few. The legislation would also allow the use of the drug for adults with the disease. SB 2636 passed in the Senate in April and is currently on second reading in the House.

Senate committee approves minimum wage increase

By Jamey Dunn with Caitlin Rydinsky contributing 

A Senate committee today approved a plan to increase the state’s minimum wage.

The proposal would incrementally raise the minimum wage from the current $8.25 an hour to $10.65 an hour by 2016. Opponents of Senate Bill 68 argued that the increase would hurt small businesses and cause them to lay off employees or hesitate to create new positions. Mike Murphy, owner of Charlie Parker’s Diner in Springfield said if the proposed increase took place he would have to cut back the hours of his minimum wage employees and potentially might have to let some of them go. Murphy said his current payroll is about $285,000, not including his own salary and tips that wait staff bring in. He said the proposal would increase payroll costs by about $78,000. “I have two choices: raise prices, or cut costs,” he told the committee. “I cannot price myself out of business; nor will I, and so what I will have to do is cut costs.” He said that he could not do without his skilled higher-paid employees. “My minimum wage employees would be the first to be cut.” Murphy said that the minimum wage has been increased nine times since he opened his business. When asked if the had to layoff any employees under those increases, he said no. But he said that it made things harder for his business, and he did have to cut back on some hours.

Sponsor Maywood Democratic Sen. Kimberly Lightford said that the proposal would bring the minimum wage in line with the current cost of living and help working families avoid poverty. Proponents argue that it would also boost the economy by giving workers more buying power. “This is economic. This is living outside of poverty. This is working an earning a minimum wage,”  she said. “I don’t even feel that this is a party issue. This is people issue.”

While Lightford may not believe that it is a party issue, the legislation passed on party lines out of the committee. Chicago Democratic Sen. John Mulroe voted in favor of the bill today but said he was not yet ready to approve it on a floor vote. “I just want a little more time before I commit to any vote on the floor.” After the committee hearing, Lightford said that she had more negotiating to do on the bill and did not yet have a timeline for when she might call it for a vote in Senate.

House begins to mull minimum wage increase

By Jamey Dunn

A House committee today began taking testimony on a proposal to increase the minimum wage in the state.

Chicago Democratic Rep. Arthur Turner proposed House Bill 3718, which would increase the minimum wage in the state in an incremental way. Under the proposal, the wage would go from $8.25 an hour to a $9.25 an hour starting in October of this year. The wage would go up to $10 and hour in 2015 and increase again in 2016 to $10.65. The bill has yet to be assigned to a committee. But the members of the House Labor and Commerce committee said they wanted to get a jump on getting information about the proposal. The legislation has 26 House sponsors.

Robert Lee, who said he had been homeless in the past, told the committee that an increase to the minimum wage would help him support his daughters. “When I have to tell them ‘no’ all the time because I can’t afford to be able to do what I need to do for them, it hurts,” he said.

Tim Drea, the secretary treasurer of the Illinois AFL-CIO, said that typical minimum wage workers are not teenagers and college students. But he said that even the ones who are, face growing college tuition costs. But in increase in the minimum wage could also mean less work available at public universities for students. Southern Illinois University President Glenn Poshard told lawmakers last month that if the minimum wage were increases to $10, the school would either have to cut back on student workers or cut elsewhere in its operations. “Between salaries and fixed costs, we don’t have any extra to run our universities,'' he said.

Rev. Robert Jones with the Mt. Carmel Missionary Baptist Church in Chicago said that financial hardship is one of the most common personal problems that he counsels his parishioners about. “The workers I hear from are not looking for a handout. They’re not looking for a government subsidy. They simply want to earn a fair day’s wage for a good day’s work.” He said that the cost to fill basic needs, such as food and transportation, continues to increase. “Yet, it seems that it is not okay to raise the wage for the workers who make the bread, who work at the gas stations, who produce the goods and services that we as citizens are used to consuming on a daily basis.”

The committee only took testimony from proponents today, and it plans to hear from opponents when lawmakers return for session after the March 18 primary election. Gov. Pat Quinn called for an increase to the minimum wage in his State of the State address earlier this year. There is also a campaign underway in the Senate to pass a different bill to increase the minimum wage. That legislation is sponsored by Maywood Democratic Sen. Kimberly Lightford.

Half of Illinois' fast-food workers rely on public aid

By Jamey Dunn

More than half of front-line fast food workers in Illinois are recipients of public aid.

A new report titled Fast Food. Poverty Wages: The Public Cost of Low-Wage Jobs in the Fast-Food Industry from the University of Illinois at Urbana-Champaign and the University of California Berkley’s Labor Center found that 51 percent of the 84,000 workers in the fast food industry in the state rely on public aid programs, such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Illinois’ stats were similar to national finding. Across the country, 52 percent of the employees of fast food restaurants are enrolled in public assistance programs. That compares with 25 percent of the workforce as a whole. The study also says that 73 percent of those enrolled in the programs covered in the study — Medicaid, SNAP, Earned Income Tax Credits and Medicaid programs specifically for children — are employed or are part of a family that has at least one employed member.

The median pay for fast food employees across the nation is $8.69. The report notes that pay for fast food workers is usually at or near minimum wage, which is $8.25 an hour in Illinois. The median number of working hours available to fast food workers each week is 30. An estimated 87 percent of fast-food workers do not receive health care coverage through their employers.

“The combination of low wages and benefits, often coupled with part-time employment, means that many of the families of fast-food workers must rely on taxpayer-funded safety net to make ends meet,” the study says. “People working in fast-food jobs are more likely to live in or near poverty. One in five families with a member holding a fast-food job has an income below the poverty line.”

The estimated national cost for public benefits given to fast food workers is $7 billion each year. In Illinois, the cost is $368 million annually. About 60 percent of the total national cost, or $3.8 billion, comes from the 10 largest fast food companies, according to a companion report issued today by the New-York-based National Employment Law Project. Last year, those companies reported $7.4 billion in profits and paid $52.7 million to their highest-level corporate employees.

The authors of Fast Food. Poverty Wages: The Public Cost of Low-Wage Jobs in the Fast-Food Industry say these costs should be considered when public policy choices about public aid and minimum wages are made. “Although extensive, the hidden public cost of low-wage work rarely factors into debates about state and national policy. The public benefits discussed in this report provide a vital support system for millions of the working poor. The findings of this report suggest those programs could be more effective if supplemented by measures that improve workers’ wages and benefits, either through public policy measures such as living and minimum wage laws, or through collective bargaining.”

Quinn lays out challenging legislative agenda in State of the State address

By Jamey Dunn and Meredith Colias 

Illinois lawmakers hope to tackle a number of complicated and controversial issues in the new legislative session. In today’s State of the State address, Gov. Pat Quinn weighed in on several of the topics on their agenda.

Gun issues 
Quinn renewed his call for a ban on assault weapons and high-capacity magazines. “Today, we all weep over the senseless violence in our communities. But as elected officials, we’re in a position to do something about it. We have life-saving work to do. We cannot wait for another tragedy to happen before we take action,” he said. While the governor did not describe all the provisions he would like to see in a concealed-carry bill, he did make it clear that he wants limits on where residents carry guns. “We must ensure that guns are kept out of everyday public places because guns don’t belong in our schools, shopping malls or sports stadiums. And we must make Illinois safer by strengthening background checks and requiring gun owners to report lost or stolen guns.”

In December, a federal court gave Illinois 180 days to approve concealed-carry legislation. Attorney General Lisa Madigan appealed the ruling, but for now the deadline looms. “He does want a limited bill. But he needs to start getting specific because the clock is still ticking on the 180 days,” Rep. Brandon Phelps said of Quinn. Phelps introduced House Bill 997 last week. His legislation would bar guns from certain places, such as government buildings and schools. But he said Quinn’s limitations go to far. “I just don’t see us agreeing to just a sidewalk-carry bill as he wants. I just don’t see that.”

Quinn called on counties to submit mental health records to the Illinois State Police for Firearm Owner Identification Card background checks. “For years, counties across our state have not been reporting their mental health records to the Illinois State Police. This year, we need every county to step up and do its part to ensure mental health records are updated in real time.” A recent audit found that the state police were struggling with issuing FOID cards in a timely manner. Phelps said that the FOID system must be repaired to properly administer concealed-carry in the state. “They need to get that corrected, and we need to help with that.” Under his bill, those wishing to carry would apply for a permit that would cost $25. However, he said the permit fee may increase to help cover the costs of the permitting system. “We started somewhere because we didn’t want anybody not to be able to afford it because of their Second Amendment right to carry. but we can negotiate that. I think it will be moved up. I really do.”

Phelps is working with Chicago Democratic Sen. Kwame Raoul to try to negotiate a concealed-carry proposal that can pass through both legislative chambers. “We’ve agreed to gather parties in the room and have a discussion where we can have a respect for the Second Amendment as it has been interpreted by the [U.S.] Supreme Court and other courts below it, and at the same time recognize that we have a problem with gun violence,” Raoul said. “I think the two things are not inconsistent: wanting to protect the rights of law-abiding gun owners, who mean no harm to anybody [and] who want to participate in sportsmen activities or own a weapon for self protection, and trying to stop a flow of guns to people who we all know will do harm with them.” Raoul said that polarizing rhetoric has stood in the way of compromise on gun issues in the past, but he said that he and Phelps hope to “start the discussion without vilifying anybody on either side of the debate.”

Chicago Democratic Rep. Edward Acevedo, who sponsors a ban on assault weapons, said that he hopes to link concealed carry and an assault weapons ban into an overarching approach to gun control. But both Phelps and Raoul said they are not interested in taking that approach. “Those are two separate issues, and that’s what we want to treat them like,” Phelps said. Quinn and Acevedo share similar views on assault weapons. “Of course, we must abide with the Second Amendment. But there is no place in our state for military-style assault weapons designed for rapid fire at human targets at close range,” Quinn said in his speech today. “It’s not about hurting the average sportsman or hunter, or its not about trying to take away the Second Amendment; it’s an issue of public safety,” Acevedo said. “These are weapons that are made for war.”

Minimum wage increase 
 Quinn urged lawmakers to increase the minimum wage from the current $8.25 hourly rate to $10 an hour over the next four years. Maywood Democratic Sen. Kimberly Lightford, who sponsored a bill last session to increase the minimum wage, said she has been in talks with supporters and opponents since last spring. She said she hopes to bring a bill to a Senate committee next month. “We have a lot of new members, so I’ll be sitting down talking to my colleagues and finding out what they can support,” she said.

Lightford said she is glad that Quinn highlighted the issue in his address. “It’s wonderful to have the governor’s support. Hopefully, that can also help our efforts.” But business groups are adamantly opposed to the increase and vow to rally a strong opposition effort. “We think it’s just a disastrous proposal,” said Todd Maisch, vice president of government relations for the Illinois Chamber of Commerce. He said that a minimum wage increase could hurt job growth in the state. “They’re two issues that are really related. Employers simply don’t have stashes of cash that they have got in the back of a vault somewhere that they’re ready to hand out to people. This is more money that goes to wages for employees they now have and make[s] it that much harder to add any more employees or reinvest in the business and create more jobs on down the road.”

Both Quinn and Lightford argued that those working full-time jobs should make enough to support themselves. “We need this because we need families to thrive. We need to not have people work 40 hours a week and still live in poverty,” Lightford said.

Same-sex marriage 
 “Today, civil unions are the law of our state. And nearly 5,200 couples across 94 counties have joined in a civil union. Now, it’s time to take that next step in achieving full equality. Marriage equality is coming to Illinois,” Quinn said.

Of all the issues the governor mentioned in his speech, this one has the most momentum. A Senate Committee approved same-sex marriage Tuesday, and supporters hope to pass it in the chamber by Valentine's Day. “The time for marriage is now,” said Bernard Cherkasov, chief executive officer of Equality Illinois.

Pension costs 
Quinn called pension reform the “toughest of issues” and called on lawmakers to pass pension changes to keep the costs from cutting into other areas of spending, such as education. “The pension squeeze is draining our ability to teach our students. Our children are being shortchanged. And in the end, that shortchanges our economy, too.” Union leaders said Quinn was presenting a false choice between pension costs and other state services. They argue that there are other options for addressing the state’s unfunded liability than the current plans up for debate, which they believe are unconstitutional. “The governor's claim that the choice is pensions-or-pencils is deeply unfair. We must work together to adequately fund public education and solve the state’s funding crisis. Teachers and other education professionals share no fault in the problem but are willing to share in the sacrifice, and to simply balance the budget on their backs is wrong. Finding a fair and constitutional solution will take courage from everyone involved, including the governor,” said Dan Montgomery, president of the Illinois Federation of Teachers.

Quinn again threw his support behind Senate Bill 1, which is sponsored by Senate President John Cullerton. “I urge all of you to be part of the solution. And while refinements may come, Senate Bill 1 is the best vehicle to get the job done. Hard is not impossible,” Quinn said. Cullerton believes that some consideration must be given to workers for any reduction in their benefits. A plan that passed in the Senate would have asked employees to choose between their compounded-interest cost-of-living adjustments or state-subsidized retiree health care. SB 1 contains a version of a pension reform plan that was up for consideration in the House during the lame-duck session at the end of the last General Assembly and the measure that passed in the Senate. Cullerton has said he wants the Senate plan tacked on in case the Illinois Supreme Court rejects the House proposal, which he believes is unconstitutional. If that happened, the court could instead consider the Senate proposal.

House members on both sides of the aisle voiced concerns about the SB 1. Northbrook Democratic Rep. Elaine Nekrtiz, who has sponsored several pension reform bills in the House, said that the savings are uncertain under that proposal, which allows employees a choice, because there is no way to know which they will pick. “The pension problem is driven by math and by numbers, and a solution has to also be driven by math or by numbers,” she said. Nekritz called for an actuarial analysis of the potential savings under the measure. “I think members deserve that before they would vote on something.” House Republican Leader Tom Cross brushed off Quinn’s backing of SB 1. “He’s endorsed, I think, just about every pension bill that’s been out there. He’s been pretty outspoken on the need to do pension reform. ... The fact that he’s talking about that [bill] doesn’t mean that other ideas are not on the table because he’s embraced a bunch of different ideas.” Cross is working with Nekritz to try to find a compromise that can pass in the House. He said it is the job of lawmakers to pass the plan they think is best instead of sending multiple options to the courts. “[Our] first obligation ought to be: Pass a bill that [we] think solves the problem, and then the courts will decide.”

Some lawmakers said they were not impressed with Quinn’s speech. They said it lacked details and did not place enough emphasis on the state’s budget problems. “He didn’t even hardly mention the budget. He needs to get focused. We’re in a fiscal crisis,” said Rep. John Bradley, a Marion Democrat. “I don’t think his speech was very well-received, but we’ll see.” A House committee chaired by Bradley has already begun the process of creating revenue estimates. The House has based its budget on those types of estimates in recent years. “We’re not talking about it. We’re actually doing it. So we’re going to continue down that process. To the extent that to the governor’s office wants to take part in our bipartisan efforts to do that, then we welcome the help. But we’re moving forward.” Several legislators accused Quinn of using the State of the State as an informal launch for a 2014 reelection bid. “You can tell he’s running for governor again because that was nothing but a political speech,” Phelps said.

Senate Republican Leader Christine Radogno agreed. “By and large, I think it was more of a campaign kick-off speech than anything else.” But in a news conference after the address, Cross and Radogno demurred on several issues, including gun control and same-sex marriage. “There are going to be some things in here you like; there are going to be some things you don’t like,” Cross said of Quinn’s speech. “I think we need to focus on the big issues like the pensions so we have a vibrant — someday — a vibrant economy and businesses that want to stay here and come here and expand here. The elephant in the room, the only issue that matters right now -- everything flows from it -- is the pension debate.”

Other legislators said Quinn did well, giving what is basically a ceremonial speech meant to set the tone for the session, but they hope he will provide more decisive leadership in the coming months. “I thought the governor spoke well and from the heart about a lot of issues that are on his mind,” said Skokie Democratic Rep. Lou Lang. “I’m not sure I heard a lot of specifics. I’m not sure we heard a lot of specific plans on how he proposes to move Illinois forward in these areas. And I am not sure that he provided the leadership in this speech that I hope he will later provide. I do know this: He’s and honest man. His heart is in the right place. He wants to succeed. But he’s going to have to grab on a little stronger to the reins of government if he wants to lead this General Assembly to where he wants us to go.”

State losing ground on poverty goals

By Jamey Dunn

A government commission seeking to cut extreme poverty in half in the state by 2015 says Illinois is moving in the opposite direction of that goal.

A report released by the Commission on the Elimination of Poverty found that more than 800,000 people are living in extreme poverty in the state. That number increased by more than 200,000 since the General Assembly created the commission in 2008. Extreme poverty is defined as an income that is less than half of the federal poverty level. For a family of four that would mean $11,175 a year. Making up 10 percent of those who are extremely poor, children are the most represented age group. More than12 percent of people living below the extreme poverty line have a disability that hinders their ability to work.

The recession that has pushed more residents into poverty and made things harder for those already below the poverty line has also strangled state revenues. With fewer tax dollars rolling in and much of the money from the recent tax increase going toward the state’s deficit, lawmakers made cuts to balance the budget. “The implications of substantial service cuts for those experiencing extreme poverty — many of whom rely on state-funded services in their communities to meet their basic needs — will be nothing short of devastating,” the report said. The commission’s report focused on several of the group’s recommendations from its 2010 plan. All but two of the legislative recommendations the group made last year and revisited in the report were defined as either “losing ground” or at a standstill.

Rep. La Shawn Ford, a Chicago Democrat and sponsor of a measure that would bar the state from asking most job applicants about nonviolent criminal records, said he has hope for his legislation. House Bill 1210 failed to emerge from committee during the spring legislative session. He said that The Illinois Department of Central Management Systems, which manages the state's workforce, is concerned about implementation costs, such as printing new applications. But Ford said he is working with CMS and hopes to revisit the issue during the fall veto session, scheduled for the end of October.

Ford said the plan would allow those who have paid their debt to society a chance to get back on their feet through work. “In fact, it would save the state a lot of money. The fact that we have so much recidivism — one of the reasons is that people can’t go back to work.” Ford said that jobs with specific legal requirements barring those with criminal records would be exempt from the bill. “The bill is pretty simple. The bill is safe. It eliminates employers or jobs in the state that the law automatically disqualifies. … You can’t apply for a job with law enforcement if you have a [criminal] background. The law disqualifies you. You can’t apply for a job dealing with money. The law disqualifies you.” Ford said if the state leads by example, private businesses might follow suit and stop asking about nonviolent criminal offenses. He added that the state could also offer incentives to employers that hire people with records. “It’s about time that taxpayers stopped footing the bill for individuals that are not able to go to work and pay taxes. We have to foot the bill by continuing to pay for their health care, pay for their incarceration or pay for them through social services.”

Some business leaders say components of the commission’s recommendations would potentially put more people out of work. David Vite, president of the Retail Merchants Association, said proposals such as raising the state minimum wage and requiring employers to give their work force paid sick leave would increase costs to business and deter hiring. He said in some cases, it might lead to layoffs, and some businesses would not be able to remain afloat under such demands. “It certainly would have reduced employment in the state and probably put some people out of business.”

Vite had a lukewarm reaction to one of the recommendations that did become law, House Bill 2927, and said it could help to spur hiring. The new law will offer subsidies to be spent on wages to employers who hire new workers. The companies and nonprofits that take the subsidies must agree to keep new workers even after the state stops helping to pay their wages. The subsidies are to be distributed throughout the state based on unemployment rates. “It’s not exactly what we would like, but anytime you give an opportunity to reduce the cost of labor in the state, it can give a positive effect,” Vite said.

Maywood Democratic Rep. Karen Yarbrough, who sponsored the legislation that created the commission, said the report was upsetting but not a total surprise. “It’s very distressing. I didn’t expect it to be so dire. But it is, and I understand why it is. Because working in our district offices, I mean, you see it up front and personal. This summer has been extremely distressing. People who have lost their homes, lost their jobs and probably the most important thing is that in some cases — lost hope.”

She acknowledged it is difficult to find support for proposals that would increase costs to the state or to businesses in the midst of a budget crisis and after the passage of an income tax increase. “We have an obligation. However we get it done, we have an obligation to the least of them. … We have a moral obligation to figure this out,” she said. “I understand the reality. It’s tough. But it’s our job. We signed up for it as legislators.”

The report said that the goal of eliminating poverty did not come out on top when weighed by legislators with other concerns and limited money to spend. Along with passing few of the group’s recommendations, lawmakers also shifted money away from the Temporary Assistance for Needy Families program, slashed programs for the homeless and transitional housing and eliminated two income assistance programs. “Faced with difficult decisions about state budget cuts and policy priorities, policymakers failed to prioritize funding for programs and services and substantive bills that would meet the needs of the most vulnerable. Only by refocusing and reprioritizing in the coming year will our state be able to decrease the number of individuals and families living in extreme poverty.”

Kimberly Drew — a policy associate for the Heartland Alliance for Human Needs & Human Rights, which provides assistance to the commission — said that group considered the state’s budget shortfall when making its recommendations. “There was much discussion around the current state of the Illinois budget and really what could gain traction around the budget climate.” She said administrative changes, such as Ford’s proposal and streamlining the application process for assistance programs so those who are eligible for multiply programs could cut down on the number of applications they submit, are low cost solutions. However, she said the commission will also lobby lawmakers to restore funding to the eliminated income assistance programs and programs for the homeless, among other cuts. “We want to raise up some of the cuts that have had particularly devastating impacts on people who are in extreme poverty. … The cuts to housing programs have been particularly hard felt.”

Minimum wage increase proposed

By Lauren N. Johnson

Workers earning minimum wage in Illinois could see an increase in their paychecks under a proposal to raise the state's minimum wage from the current $8.25 per hour to $10.65 per hour by 2014.

Senate Bill 1565, sponsored by Sen. Kimberly Lightford, a Maywood Democrat, would also raise minimum wage to $10.65 for tipped workers – individuals who provide services, such as waitresses, car wash workers and nail salon employees. They currently receive $4.95 per hour.

“As we go forward, I want to make sure that minimum wage workers are not ignored and not forgotten,” said Lightford. “Their issues and rights need to be a part of the discussion. The bill will help to keep this important issue on the table as members of the General Assembly work to keep Illinois competitive and fair for business and for workers.”

Under the bill, the minimum wage would increase to $8.90 this year, $9.50 in 2012, $10.15 in 2013 and $10.65 in 2014.

“People who have to work for a living ought to make a living wage,” said Madeline Talbott, lead coordinator of Action Now, a grassroots coalition of Illinois community and labor organizations that advocates the rights of working families.

Talbot said 17 other states require employers to pay more than the federal minimum wage of $7.25 per hour. She said that in a statewide poll conducted in January, 71 percent of Illinois voters in all regions of the state supported an increase to $10.50 by 2013. Kiley and Co., a Boston-based public polling and research firm, conducted the poll for Action Now.

In 2007, former Gov. Blagojevich signed into law a similar plan to increase wages for hourly workers over a period of three years, bringing the rate to $8.25 per hour last July. Darby Anderson, vice president of Addus Healthcare’s Home and Community Services, said since that increase in wages, the group has seen a 20 percent reduction in turnover of their employees – home aides who service elderly and disabled persons.

Members of the business community opposed to the increase said it would stop economic recovery in the state after the national recession. “Illinois policy makers must understand their actions, like significantly raising the minimum wage and imposing higher income taxes, do impact our economic viability,” Kim Clarke Maisch, Illinois state director of the National Federation of Independent Business, said in a written statement.

However, Ron Baiman, director of budget and policy analysis for the Center on Tax and Budget Accountability, said a wage increase would not cause Illinois businesses to flee the state because those that would be impacted by the increase serve local markets in retail and health care and cannot “pick up and leave.”

Rob Karr, senior vice president of government and member relations for the Illinois Retail Merchants Association, said an increase at this time would be a “recipe for disaster.” Karr said the proposed increase would be yet another blow to businesses, citing Illinois’ high workers’ compensation costs and the recent income tax increase.

Waiting games

Gov. Rod Blagojevich got one step closer to enacting a recent campaign promise, but his administration still hasn't fulfilled two promises he made a year ago. Services for college students and veterans are waiting to be paid, as a result.

The Senate approved a $1 minimum wage increase 33 to 21 with 3 voting present. The measure would increase the minimum wage to $7.50, 25 cents more than a federal increase being debated in Congress. If approved by the Illinois House, the state minimum wage also would be to inflation from then on.

House approval is not a guarantee. House Speaker Michael Madigan said Tuesday afternoon that he hadn’t seen the bill, yet. “I’ve always supported increases in minimum wage. I’ve got a 35-year record of supporting those increases. I’m simply saying that we’re not certain what the proposal is.”

One sticky point in the Senate debate focused on whether businesses would still have the ability to pay part-time workers younger than 18 less than the minimum wage (50 cents less). Under Sen. Kimberly Lightford’s measure, all workers of all ages would be guaranteed $7.50.

While a minimum wage came closer to an increase, the governor’s first-term promises of giving college tuition grants and veterans health-care services are under scrutiny.

College tuition credits
Earlier Wednesday, a joint House committee heard from Michael Luke of the Illinois attorney general’s office about the sale of the state’s student loan portfolio. While the attorney general’s office was studying whether the Illinois Student Assistance Commission needed legislative approval to sell all of the nearly $4 billion asset, Luke said the commission’s staff and the governor’s legal staff were uncooperative in providing information.

That caused the attorney general’s office to issue an opinion based on limited information.

That drew criticism from some Republican committee members and raised questions about the governor’s new MAP Plus program. Last spring, the General Assembly designated $34.4 million to offer $250 a semester to students from middle-income families, but the commission does not yet have the money to pay for the new program and other initiatives contingent on the sale of the student loan portfolio. Commission chairman Donald McNeil said the process of selling, refinancing or partnering with private companies is two months behind, but the commission is confident the money will be there when it comes time to reimburse the 40 institutions that already credited the $250 credits to eligible students.

Veterans’ Cash
At the same time across the street, the Department of Veterans’ Affairs director received an earful about the delay of distributing $3 million made from a scratch-off lottery game. Programs for veterans, including $125,000 needed to open a shelter for homeless veterans, have been waiting. (I had to listen to a recording of the committee hearing because this was all happening simultaneously.)

The governor’s program to provide health care to some Illinois veterans is underused, so far. Rep. Linda Chapa LaVia, an Aurora Democrat and military veteran, said only 14 veterans were enrolled in the governor’s Veterans’ Care program. She also said the department has not yet defined how it would split up the $3 million generated by Lt. Gov. Pat Quinn’s scratch-off lottery game, Veterans’ Cash. It’s supposed to help the state provide services for post-traumatic stress disorder, homelessness, long-term medical care and short-term medical care.

The Midwest Shelter for Homeless Veterans in Lombard, for example, is $90,000 short of the amount needed to open its doors, said Bob Adams, co-chair of the shelter’s board of directors. His co-chair, Dirk Enger, said, “The biggest problem is a lack of communication. Somewhere the ball has been dropped.”

Department of Veterans’ Affairs Director Roy Dolgos said his staff has been working closely with the legislative Joint Committee on Administrative Rules since August to draft rules for the governor's program and for distributing the money, but it’s taken so long because the process is new to the department and that they didn't want to mess it up.

More to come
The 94th General Assembly’s veto session has spread between downtown Springfield and the state Capitol a few blocks away because of renovations being done in the House and Senate chambers. Action will continue Thursday and then break for Thanksgiving before reconvening November 28. Still hanging out there are 1) a three-year freeze on electricity rates and 2) a pay raise for Illinois senators.