January 25, 2007

HIGHLITES FROM THE SENATE

SENATOR MARK ZIEMAN

As a result of legislation passed this week, Iowa will see an increase in the minimum wage for the first time since 1992. By this time next year, the minimum wage will be $7.25 per hour, a 40% increase. At first glance, voting for this increase looks like a no-brainer, however, there are many unintended consequences that will be caused by this legislation. In some cases the increase will actually hurt the very people it is intended to help.

We offered an amendment that would tie Iowa’s minimum wage legislation to a federal bill pending in Congress. The Congressional proposal would implement the increase much more slowly. In 1992, Iowa was ahead of the federal minimum wage. At that time, Iowa experienced a loss of jobs and businesses. An unintended consequence.

Of great concern to me are the employees of our sheltered workshops, such as Spectrum Industries, TASC and Opportunity Homes. Our senior citizens living on fixed incomes will have the increase in labor costs passed on to them in the form of higher prices. An unintended consequence.

Student work-study programs will also be greatly affected by the increase to $7.25. This rise will be reflected in escalating costs at our colleges and universities. As a result, either fewer students will be eligible for the work-study program, or there will be fewer hours available, or more monies will have to be appropriated for the program. An unintended consequence.

Unfortunately, rural Iowa will be more dramatically impacted than urban areas, but even for those urban areas the ratchet effect will push employers into making difficult decisions. Yet another unintended consequence.

Veterans from across the state visited the Capitol recently and I am proud to say that the largest contingent came from northeast Iowa. For the past six years, I have been advocating for legislation that would keep the promises we made to our Veterans. I have often said that legislation is a slow process and this issue proves my point. It is gratifying to see legislators who did not previously embrace veterans’ issues now coming forward with their support.

My next town meeting will take place on Saturday, February 3rd, at Upper Explorerland in Postville. Representative Gipp and I will be there from 9:00 to 10:30 a.m. to answer any questions and listen to your ideas and concerns.

SENATOR MARK ZIEMAN
Senate District 8

For further information or clarification, please contact me at the Capitol (515) 281-3371 or at my home (563) 864-3104.