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Saying that she does not want to take any action that will negatively affect businesses or jobs during a national economic downturn, Governor M. Jodi Rell today vetoed a bill that would have raised the state’s minimum wage from $7.65 to $8 beginning Jan. 1, 2009, and to $8.25 beginning Jan. 1, 2010. In addition to vetoing House Bill 5105, An Act Concerning the Minimum Wage, the Governor also vetoed Senate Bill 55, An Act Concerning the Tip Credit, which is rendered unnecessary by the veto of House Bill 5105. “There is no doubt that families, particularly low income families, have been hurt by our strained economy,” Governor Rell said. “We all feel the pinch when buying groceries, filling up the gas tank and heating our homes. Yet we must also realize that Connecticut employers face these same financial pressures and are having an extremely difficult time making ends meet. “We cannot take a chance on hurting families or employers by signing another minimum wage increase into law at this time,” the Governor said. “Businesses have told me that they would not be hiring if the wage hike went into effect. Employers that are now operating on the margin may be forced to close or leave Connecticut to more business-affordable states, resulting in job losses that will undermine the already fragile foundation of financial security for thousands of families.” Governor Rell signed the last increase in the minimum wage two years ago. Connecticut’s minimum wage is already well above the federal minimum, which is $5.85 per hour. “Business owners tell me it is not just the cost of raising the minimum wage, but also the associated costs, such as higher Social Security, unemployment tax and workers compensation payments,” Governor Rell said. “For businesses with thin profit margins that are struggling, this bill could have a negative impact of $700 or so per worker per year.” Moreover, businesses where all workers’ wages are tied to the minimum wage would also see increased costs, since all workers’ pay would have to be increased to maintain the differentials. Other businesses will simply increase their costs to consumers to keep up. “We must not lose sight of the integral role that employers play in sustaining our economy, or the fact that, without employers, there are no jobs,” Governor Rell said. “It is not a minimum wage increase that will support our families – it is a thriving economy, accomplished through a business-friendly environment with successful employers and reasonably priced consumer goods and services.” SB 55 would have offset the minimum wage increase in HB 5105 for hotel and restaurant employers by increasing the tip credit those employers could recognize for bartenders and waitstaff effective January 1, 2009. Without the increase allowed in HB 5105, SB 55 could actually result in reducing the current wages for those employees. Last week, Governor Rell said her budget office is warning that the shortfall for the current fiscal year is growing while the projected deficit for Fiscal 2009 has increased to as much as $150 million. On Friday, the Governor ordered a hiring freeze for state agencies. The governor has already ordered a number of steps to reduce state government expenses, including a ban on out-of-state travel, limits on the use of state purchasing cards and reductions in the use of state vehicles and gasoline consumption. Earlier this month the Governor instructed commissioners and other agency chiefs to review their current expenditures and stop all non-essential spending. She also directed them to begin a ban on out-of-state travel by all personnel unless the trip is paid for out of non-state funds. “Every economic slump is followed by a period of economic growth,” Governor Rell said. “If Connecticut is to make the most of its natural strengths when that upturn arrives, we cannot afford to pass measures that burden state businesses. We will continue to plan for how we will make the most of our advantages – our strong work force, our ingenuity, excellent education resources and leadership in fields such as biotechnology, pharmaceuticals, aerospace, financial services and other 21ST-century growth opportunities.” © Copyright by NorwalkPlus.com. Some articles and pictures posted on our website, as indicated by their bylines, were submitted as press releases and do not necessarily reflect the position and opinion of NorwalkPlus.com, Norwalk Plus magazine, Canaiden LLC or any of its associated entities. Articles may have been edited for brevity and grammar. Related Articles: Report cites economic impact of Norwalk Community College - Jul 28, 2008 - 2:04:57 PM New Bradley Airport Administrator announced - May 7, 2008 - 12:03:17 PM Stones rock Aquarium April 4 - Mar 14, 2008 - 10:20:05 PM Help available for former F&S Oil employees - Mar 14, 2008 - 9:24:25 AM CURRENT HEADLINES: Top of Page
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