November 30, 2006

Welcome to the NFIB/Illinois’ Capitol Roundup. Capitol Roundup is an e-mail newsletter on news being made at the Illinois Statehouse and on Capitol Hill in Washington, D.C, as it happens. This e-mail is provided to our activist members who have shown an interest in promoting the voice of small business to state and federal policymakers. Capitol Roundup will appear regularly during legislative sessions.

The following information is a brief update on what happened in this week’s Veto Session. If you have access to the Internet please check out www.nfib.com/il - the section is updated regularly as new developments take place or legislation is introduced.

MINIMUM WAGE HIKE HEADS TO GOVERNOR

A compromise was struck in Illinois this week on minimum wage. The result was SB 1268 and it raises the Illinois minimum wage in 4 steps, taking it to $7.50 starting July 1, 2007 and raising it 25 cents every thereafter ending at $8.25 in 2010. The legislation does contain a probationary or training wage allowing employers to pay 50 cents less for the first 90 days of employment, and it contains a “teen wage” allowing employers to pay 50 cents less to those under 18.

Despite these changes, NFIB remained opposed. NFIB/Illinois State Director Kim Maisch argued to the committee that small businesses are affected by the wage hike disproportionately and that the hike costs much more than an additional $1 per hour, citing all of the taxes and insurance costs that are based on wages. She was joined by NFIB member Doug Knight who owns Knight’s Action Park in Springfield. Knight indicated the hike to $7.50 would cost him over $50,000 in additional labor costs.

SENATE PASSES PHASE-IN FOR ELECTRICITY RATE HIKE

The Illinois Senate passed HB 2197 which proposes to phase-in the electricity rate hikes expected to take affect in 2007 for customers of Ameren and Com Ed utility companies.

The utility companies announced over the summer that their rates would increase by double digits in January 2007 after a 10-year freeze on energy costs for Illinois residents.

The ongoing debate has been between extending the rate freeze for 3 years, which utility companies say will bankrupt them, or a phase-in of the rate hike over a few years.

HB 2197 allows for Ameren to raise its prices for residential customers by 14 percent for each of the next three years. For ComEd, the increase would be 7 percent for each of the first two years and 8 percent for the final year.

The bill is expected to be dead on arrival in the Illinois House as Speaker Madigan prefers to extend the rate freeze.

You can follow this link and see how your Illinois Senator voted on HB 2197.

December 6 – The Rockford Area Action Council will hold a meeting on workers’ compensation at 6 p.m. on December 6 at the NIU Outreach Center located at 8500 East State Street in Rockford, Illinois. For information on AACs contact Mark Grant at 217-523-5471 or mark.grant@nfib.org.