Jefferson City -- A bill that would repeal a 2006 voter initiative by capping the state minimum wage has moved to the Senate, where its prospects are uncertain.

The bill was a goal of House leadership, but their Senate counterparts haven't made it as much of a priority. Senate President Pro Tem Rob Mayer said he didn't know when - or even if - the chamber would take up the bill.

"Others have been a greater priority for me," he said.

The bill would cap the state minimum wage at the federal level, which is $7.25 now. It would effectively overturn a 2006 voter initiative, which, according to the ballot language, would "increase the state minimum wage rate to $6.50 per hour, or to the level of the federal minimum wage if that is higher, and thereafter adjust the state minimum wage annually based on changes in the Consumer Price Index."

Because of the CPI provision, the state wage could conceivably rise above the federal wage if the federal wage doesn't go up.

That is not projected to happen for several years. According to Congressional Budget Office estimates, the underlying state wage won't increase above the federal level until 2015, when it is projected to be $7.35.

Rep. Jerry Nolte, who sponsored the House cap, said increases in the minimum wage would force businesses to lay off workers or delay hiring. And a coalition of business groups has made this one of its top priorities.

"The economic times are certainly dramatically different," said Nolte, R-Gladstone.

But opponents of the bill say that giving low-wage workers more buying power stimulates the economy.

The House passed the bill 92 to 60.

The only adjacent state to have a minimum wage higher than the federal level is Illinois. It is one of 17 states with a minimum wage higher than the federal standard, according to the federal Department of Labor.

The case for repeal

Proponents say many businesses would struggle to pay above federal minimum wage and that struggling businesses aren't good for workers. If businesses cut back on jobs because of labor costs, workers will suffer.

The proposal is one of six priorities that a broad coalition of business groups has dubbed "Fix the Six." They say the six measures would help bring jobs back to the state.

Richard Moore of the Missouri Chamber of Commerce and Industry said in a Senate committee hearing that the economy has made it difficult for businesses to hire more people, and it would be even more difficult if pay went up.

"We are in a recession," he said.

House leadership and others say they don't think the voters knew they were approving a cost-of-living adjustment.

"I wonder how many people sat down and read all four pages," said Floor Leader Tim Jones, R-Eureka.

Rep. Shane Schoeller, R-Willard, said the General Assembly fixed a glitch a few years ago that drove up overtime costs for some police and fire departments.

He said voters weren't upset about those changes and he saw this "fix" in a similar way.

Nolte said he's not sure if voters would approve this change in the law, but "(the original vote) would turn out differently," he said.

The initiative passed by an overwhelming margin of 76 percent for vs. 24 percent against. At the time, the federal minimum wage was only $5.15 an hour and had not changed since 1997.

Some proponents of the cap see minimum wage jobs as those for high schoolers -- they believe most people who make that much money do not have to support a family.

"That's how I got my start," said Rep. Lyndall Frakker, R-Marshfield.

The case against change

A Senate proposal would put the issue to the voters again. But the version that the House passed does not do that, and House Democrats were critical of the bill's supporters.

"What part of 'the people have spoken' don't you guys understand?" said Rep. Jake Zimmerman, D-Olivette.

And several Republicans voted against the bill. Rep. Don Phillips, R-Kimberling City, said he couldn't vote to undo something voters overwhelmingly passed.

"I'm representing the district first" he said.

Reps. Lyle Rowland, R-Cedarcreek; Ray Weter, R-Nixa; and Sara Lampe, D-Springfield, also voted against the measure.

Opponents say that many minimum wage workers are adults who support a family.

According to studies, about 60 percent of minimum wage workers are the heads of the household, and a little less than a quarter have children.

A full-time minimum wage worker makes about $15,000 per year. That's about $3,000 less than the poverty level for a family of three.

St. Louis business owner Lew Prince said he pays his workers more than minimum wage. But if he were going to adjust their wages upward with the cost of living, he would have to sell two more CDs per day at his shop, Vintage Vinyl.

"If I can't figure out how to increase my sales $28 a day, I probably shouldn't be in business," he said.

He said the minimum wage increases are worth it, to him.

"It keeps people who are barely staying above water from drowning," he said.

Copyright 2011 News-Leader

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