MICHIGAN REPORT
REPORT NO. 89, VOLUME 43-- MONDAY, MAY 10 2004 ASSOCIATION DEMANDS VETO OVERRIDE ON 'LIVING WAGE' The Small Business Association of Michigan on Monday called for an override of Governor Jennifer Granholm's veto of a bill supporters say would help attract businesses to the state. The bill (HB 4160 <http://www.gongwer.com/index.html?link=legislation_billdetail.cfm&code=HB%2 04160&billid=2003HB416001&locid=1> ) introduced by Rep. Fulton Sheen (R-Plainwell) would have somewhat banned local governments from authorizing so-called living wage regulations on companies. Under the legislation, municipalities would have been prohibited from setting minimum wage limits higher than that of the state. "We're disappointed the governor has chosen to follow through with the veto," said Barry Cargill, vice president of government relations for the association. "We think Michigan has a long ways to go to implement an effective economic strategy." The state's minimum wage is $5.15 per hour, whereas the living wage is calculated at $8.20 per hour (based on a the federal poverty level for a family of four in 2000). Ms. Granholm said she vetoed the bill because local governments should have the ability to enact such laws if they choose. Allowing different regulations between local governments makes it difficult for businesses to operate in multiple areas across the state, Mr. Cargill said. About 15 local governments already have enacted living wage laws. If municipalities continue to make regulations that differ from the state then Michigan will be overlooked by out-of-state businesses, Mr. Cargill said. "We would like to strengthen our core urban areas and part of that strategy is to create streamlined regulations," Mr. Cargill said. "Businesses that pay good wages are those that are going to locate where red tape is the lowest." But Mr. Sheen said no override is planned at this time, although he will speak with legislative leaders regarding the future of the bill. However, he also said, "I think we'll just have to keep delivering a bill to her." With an override requiring two-thirds majorities in both the House and Senate, Mr. Sheen said the numbers aren't there. The bill passed the House 58-51 (73 votes required to override) and the Senate 22-16 (26 votes required to override). Mr. Cargill said although the veto override is unlikely, lawmakers still should push for one anyway. "This issue will come up again," Mr. Cargill said. "I think it's time that the business community hold the Legislature accountable for the votes." C 2004, Gongwer News Service, Inc. REPORT NO. 89, VOLUME 43-- MONDAY, MAY 10 20
