State Representative Tony McCombie released the following statement, after the minimum wage proposal, SB1, passed the General Assembly, on Thursday, February 14, 2019. Under Senate Bill 1, the minimum wage will increase from $8.25 per hour to $15 per hour, over the next six years. The Speaker will send SB1 to Governor J. B. Pritzker’s desk, and he has promised to quickly to sign it into law.
Gov. Pritzker is scheduled to give his annual budget address next week, on Wednesday, February 20.
Said Rep. McCombie, “I believe Senate Bill 1 not only will be ineffective–but detrimental–to the very people it is intended to help. My colleagues in the 101st General Assembly need to work together and govern. Today neither of those things happened. We need to address our income inequality with regional input and consideration. We should be investing these dollars to bridge the gap that would lift people up and out of the entry-level positions. The majority passed a partisan, non-negotiated spending bill that is, by far, the largest unfunded mandate on small businesses and communities in the Nation.”
She believes the $15 minimum wage will be detrimental to not only area businesses, but non-profits, Government entities, and taxpayers. “The Governor’s Office estimates the cost to fully implement a $15 minimum wage at more than a billion dollars. A billion dollar cost estimate…leaves out the massive costs to our local businesses, our hospitals and nursing homes, our schools, our municipalities, our park districts, our most vulnerable, and our Seniors,” said Rep. McCombie. “We cannot afford this as a State, and our communities cannot afford to pay for another unfunded mandate either.”
Ramifications of the Minimum Wage are listed.
According to the Quad Cities Chamber of Commerce, 82% of the members oppose raising the minimum wage to $15 an hour; 86% of members believe raising the minimum wage would have a negative impact on their business.
Local non-profits have reached out, saying they would have to shut down or greatly reduce services. Non-profits do not benefit from the tax credit either.
Schools and local Governments have [stated] summer jobs would be the first cuts. [This hurts] students looking for summer work and low-skilled workers looking to break into the workforce.
In 2025, the budgetary costs will increase to $1.1 billion in direct wages, annually.
Nursing homes will need to have an increase of $1.5 billion Medicaid reimbursement costs.
The State University System estimates over $100 million in increased costs annually–something neither the State, Universities, nor students can afford. For example:
- Western Illinois University: $4.4 million
- Augustana College: $2.6 million
The Community College system would see similar budgetary impacts:
- Black Hawk College: approximately $2.5 million over the six years, with a recurring cost of $750,000 per year thereafter
- Highland Community College: $400,000.