By Illinois News Network
SPRINGFIELD – The next step for a proposed statewide minimum wage increase is the Illinois House after the measure kicking the wage up to $11 per hour by 2019 passed the Illinois Senate.
The fast-tracked bill doesn't have fans with the Illinois Retail Merchants Association. They say it’s a jobs-killer. A statement from the IRMA said Illinois already has a higher minimum wage than surrounding states.
Association president Rob Karr said the increase will force employers to make cuts which will start with jobs and further disenfranchises Illinois citizens, particularly those who are low-skilled and inexperienced.
"You might turn to someone like a 70-year-old retiree who has jobs skills and interpersonal skills rather than someone who is 16 who you would be taking a gamble on,” Karr said.
Gov. Bruce Rauner said during his State of the State Wednesday he supports increasing the minimum wage to $10-an-hour over seven years, something Karr said would still increase the burden on business if there aren't substantial reforms to make the business environment more friendly in Illinois.
Increasing the state’s minimum wage not only has the business community concerned, it might also negatively impact rehabilitation facilities that are funded through Medicaid. That’s according to an association that represents organizations that care for patients with developmental disabilities and mental illnesses.
Janet Stover, president of the Illinois Association of Rehabilitation Facilities said the increase will be an unfunded mandate on their member organizations and will likely lead to job cuts.
"That's very difficult because many of the rules that govern the delivery of these services require certain staffing ratios," Stover said.
Stover said the more than 80 organizations she represents are caught with very few options with how to deal with the increased cost.
Stover said they support another measure, Senate Bill 12, which would address the unfunded mandate by increasing the Medicaid reimbursement rate for social service workers to coincide with any increase in the state’s minimum wage. That bill is scheduled for a second reading in the Senate later this month.
