Sen. Kyle McCarter (R-Lebanon) warned the Senate that a bill forcing contractors and subcontractors to pay their workers a living wage of $16.36 will do nothing to help the state budget but will increase the cost of services and goods.
“Ladies and gentlemen, if you hadn’t noticed … we have a budget crisis,” McCarter said. “This bill is not going to help our budget crisis whatsoever. I understand it’s a nice gesture, especially during campaign time, to say that you care for people, and you want their vote. But this will only increase the costs of goods and services to the state of Illinois. If whoever is providing those products is forced to pay the $16.36, the prices will go up.”
The bill, SB1347, introduced by Sen. Daniel Biss (D-Evanston), would also adjust the living wage to match the rate of inflation every year. Any contractor or subcontractor who fails to comply would face penalties, fines, a reconsideration of future contracts and would be liable for unpaid wages. At worst, the contractors and subcontractors could be disbarred from becoming vendors.
Biss, who has announced his bid to unseat Gov. Bruce Rauner next year, argued that while Illinois does a commendable job at ensuring state employees receive decent wages, it neglects contractors and subcontractors. He said his bill would solve that problem.
McCarter countered that the bill will divide vendors and potentially scare them away from the state.
“You may take them away as a potential vendor because I guarantee you they are not going to separate their operations if they are selling to the state and they are selling in the private sector,” he said. They are not going to have a corner of their factory that produces goods just for the state of Illinois paying $16.36. They are not going to separate that. They won’t have the efficiencies. They will just quit. You will reduce the numbers of vendors. You will increase the price just so you can say that you care for some people.”
McCarter concluded that if Biss wants to help people, he should work to pass a budget.
“If you want to say you care for people, then pass a budget and live within your means,” McCarter said. “This is a very bad bill, and it is seriously flawed.”
Many of the Senate heeded McCarter's argument as the bill failed. Biss later requested a postponed consideration of it.
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