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April 2009 issue - Vol.9, No.7

Business groups lobby against expansion of prevailing wage law
into incentives territories

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By KERRY L. SMITH

     The groundswell of objection to Illinois Senate Bill 43 continues to rise as legislators consider a compromise measure to a standing bill that would extend prevailing wage law into TIF districts and enterprise zones - even for private-sector projects that aren't being built with any public dollars.
     At press time, an amendment was afoot that would require only those properties receiving direct benefit from TIF or EZ to pay prevailing wage on work within these territories, rather than mandating that all properties located with a

Prevailing Wage Picture

The Illinois Chamber and the Illinois Municipal League are among those opposed to SB 43. They say the bill, which proposes extending prevailing wage law into TIF districts and enterprise zones - would hurt economic development.
Photo courtesy of The Associated Press.

TIF or EZ pay prevailing wage.
     Among those organizations lobbying to keep SB 43 (HB 63) from becoming law is the Illinois Chamber of Commerce. Todd Maisch, vice president of government affairs, says the bill - which mandates prevailing wage for

maintenance as well as new construction and has no sunset date - is troubling. 
    "We're very, very concerned," said Maisch. "The timing of this proposal (by Sen. James Clayborne, D-Belleville) couldn't be worse. It would seek to take two very important economic development tools and make them into zones of economic avoidance.
    One hundred percent of privately funded projects would still have to pay prevailing wage. You could actually see a situation in some communities for a human cry to dissolve the TIF (tax increment financing   [continue]
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Obama's COBRA subsidy helps laid-off workers but could cost businesses in long run

By KERRY L. SMITH

   Under the federal stimulus law enacted by the Obama Administration, employers in Illinois and elsewhere are required to front 65 percent of the cost of COBRA - continued insurance coverage - for laid-off employees but the dollars will return to employers via a subsidy. The new provision - part of the American Recovery and Reinvestment Act of 2009 enacted in mid February - covers  [continue]
 .

Cobra Subsidy Picture
Employers are required to front 65 percent of the cost for laid-off employees' COBRA insurance coverage under a new Obama Administration initiative.
Photo courtesy of The Associated Press.

Construction business becoming jigsaw puzzle with ever changing parts

By ALAN J. ORTBALS

   Spending on nonresidential construction is expected to decline 11 percent in 2009 from 2008, according to a recent report by the American Institute of Architects. While some major projects are moving forward in Southwestern Illinois, contractors are finding the bidding fierce to win these jobs.
"I really haven’t seen it this bad before and I’ve been around for a long time," said Bruce Holland, president of Holland Construction Services Inc. "I’ve seen some slow times, but I’ve never seen contractors taking the hit that they are right now."
     Holland says a recent project that was relatively small for commercial work, about $1.5 million, drew 16 bids from general contractors. A year ago, the same project would have either gone to a negotiated price or would have attracted the attention of less than half a dozen bidders.
     Mark Hinrichs, principal of IMPACT Strategies Inc., says that's true of subcontractors  [continue]


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