Saturday, May 19, 2007

This Cries Out For National Attention 

How Illinois minimum wage hike Is killing government Contractors

Filed As:  Economic principlesEmployment

This is just too ironic:

"A Carlinville company has lost two large state contracts in the past year because Illinois law requires it to pay a higher minimum wage than successful bidders from other states, according to an administrator for the firm.

Rely Services, also known as Accudata Computer Services, could be forced to lay off most of its 134 full- and part-time employees - or even move to Indiana - if it loses another state contract it is bidding to keep, said operations manager Brenda Witt.

"I know that the state needs to keep their costs down, but they also need to keep these jobs in state," Witt said. She hopes lawmakers can provide a solution.

"They need to get legislation in place to level the playing field. That's all I'm asking," Witt said.

This jives with everything we said one year ago. Now, one would think that the solution would be a simple one.  Simply roll back the minimum wage so Illinois labor can compete with out-of-state labor, but no,  the solution being proposed now is to gouge taxpayers:

Witt has talked to her legislators, Sen. Deanna Demuzio, D-Carlinville, and Rep. Gary Hannig, D-Litchfield. A Senate resolution sponsored by Demuzio and Sen. Michael Frerichs, D-Gifford, would create a task force to examine the state procurement code, "particularly on the preference given to Illinois businesses." That legislation, SR52, passed the Senate on a unanimous vote.

"Not only myself but other legislators are having the same experience where bidding has gone out of state," Demuzio said, adding that large-scale layoffs would certainly adversely affect her hometown.

Allow me to paraphrase the Gipper here, Illinois state government's view of the economy could be summed up in a few short phrases:  If it moves tax it, if it keeps moving regulate it and if it stops moving subsidize it.

Well, here it is in action.

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