June 18, 2002

Herman Hernandez

Not a friend to those considered poor the state legislator has proposed legislation that would inhibit a measure pushed in local municipalities that has been argued would help raise families above the poverty level. Called the Living Wage ordinance this measure, which is already in existence in several Michigan cities, mandates that businesses doing business with that city pay their employees at a certain level where the level depends on the type or existence of healthcare coverage. State Republicans are proposing to target local communities who have or will enact a Living Wage Ordinance. The republicans are proposing a revenue sharing adjustment that would reduce the amount the state gives back to local governments who have a Living Wage ordinance.

The State Legislature, under the control of the state republican party, has tried before unsuccessfully to kill Living Wage ordinances in the state. But local representatives whose constituents favor such an ordinance have pressured Lansing not to kill the policy. As a result it seems the republicans have been searching for a way to discourage local districts from adopting or enforcing a Living Wage.

Simply put the Living Wage mandates that a business with a government contract pay an employee a certain amount, which is higher if the company does not offer health care coverage. This has been considered necessary to assist some communities in getting around the minimum wage that is said to be a constraint to those trying to climb above the poverty level. Currently a single wage earner working at the federal minimum wage could not earn enough income to provide for a family of four. The Living Wage ordinance does not guarantee more income to an individual but pressures those who do business with a city to pay their employees a wage more reflective of the needed income for city residents. The city with a living wage is argued to have a better rate of return because the wage earner returns part of the wage as taxes, can spend more in the city and can afford a higher standard of living without the drain on government assistance programs. A city with a high percentage of minimum wage workers could not meet revenue as averaged nor could it compete with a city with a low percentage of minimum wage workers.

When Governor John Engler first took office twelve years ago he made history when he cut close to 90,000 people from various forms of government assistance programs. People thought he and the Republican Party would pay a political price for that decision. But there were never any negative repercussions. In fact the past eight years with the republicans in charge of most state offices have successfully pushed their agenda. There has been little opposition and any obstacles have usually ended in compromise favorable to the republican majority. With a strong track record the republican agenda in the state of Michigan has not slowed and in fact has picked up its pace. This is not that common in an election year.

This year Michigan chooses a new governor and elects people to every statewide office. Also the legislators are up for re-election or election for those banned via term limits. With such a sweeping change it would seem logical for the republicans to keep a low profile. In the last presidential election Michigan went to the democratic candidate for president and in the republican primary selected McCain who did not receive the parties nomination. Thus there is no precedent that Michigan is a thoroughly a republican state. In fact twelve years ago when John Engler took office it could have been argued that Michigan was a democratic state. But the republicans and a few democrats pushed term limits into place and thus many democrats lost their long time positions in State government. This helped to elect new state legislators and gave the Republican Party with its mighty fund raising capabilities an edge.

This year however is different. Many republicans are now affected by term limits. Thus the governor, secretary of state, and the republican legislator leadership must all step down. This creates a potential for the democrats to control the entire state, as did the republicans. This is why the attack on the Living Wage ordinances seems to be coming at the wrong time. The republicans want to appeal to voters to retain a republican as governor. The republicans have been making changes to local municipalities that are being called attacks on Home Rule. Local control has always been an important topic among voters and politicians. So the republican agenda that has placed local control at the top of this years list is confusing for a party that might want to retain the control and influence it has in the state. It would seem that this is a last ditch effort to push an agenda that is certain will be unworkable after 2002. Thus the seemingly last directives of the republicans in charge may be to pass directives that will seem harsh but yield a republican wish list of results.