Minimum wage bill killed in S.D.

Minimum wage bill killed in S.D.

	Published : Thu, 01 Feb 2007 00:09 By : Agencies Print this Story

PIERRE, S.D. (AFX) - A South Dakota House committee rejected a measure to raise the state's minimum wage to $7.25 an hour in a three-step process.

The State Affairs Committee on Wednesday voted 9-3 mostly along party lines to kill the bill, which was sponsored by members of the Democratic minority. All Republicans on the panel voted against the measure.

HB1191 would have raised the state minimum wage in roughly the same steps as one passed recently by the U.S. House for the federal minimum wage. The federal bill has been held up in the Senate.

The South Dakota proposal would have raised the current state minimum wage of $5.15 an hour to $5.85 on July 1, to $6.55 on July 1, 2008, and to $7.25 on July 1, 2009. After that, the state minimum wage would have risen each year to match the main inflation rate reported by the federal government.

The bill's main sponsor, Rep. Rich Engels, D-Hartford, said the state minimum wage has not been increased since 1997, when the federal minimum was last raised. In the past decade, the costs of fuel, food and other necessities have risen significantly, he said.

Engels said 30 other states have already raised their minimum wages without waiting for the federal government to act.

At the current minimum wage of $5.15 an hour, many people might decide not to work because they can better provide for their families with welfare and other federal aid, Engels said.

'People at the very low end of the economic spectrum have some very hard financial decisions to make,' he said.

Engels said Congress is expected to raise the federal minimum wage, which covers employees of companies doing at least $500,000 a year in business, smaller companies engaged in interstate commerce and all hospitals, schools and government agencies. It makes sense to also raise the minimum wage for South Dakotans not covered by the federal law, he said.

But some opponents said South Dakota should wait and raise its minimum wage after the federal minimum wage is increased. Representatives of business associations also said they oppose tying the minimum wage to annual inflation rates.

Republican Gov. Mike Rounds also is proposing a boost in the state minimum wage that would closely follow the federal minimum wage, but a hearing has not yet been held on his bill.

Rep. Thomas Brunner, R-Nisland, said he opposed the Democrats' bill because it could cause some people to lose their jobs. 'To me, it seems the market will take care of wage levels.'

House Democratic Leader Dale Hargens of Miller said he believes a boost in the minimum wage will help students trying to earn money for college or technical school.

House Republican Leader Larry Rhoden of Union Center said the state should not raise its minimum wage until the federal government boosts its minimum wage. He said he also is philosophically opposed to a minimum wage.

'I don't believe personally government should interfere' with private enterprise, Rhoden said.