State chamber of commerce officials Wednesday denounced a proposed living-wage ordinance in Lawrence, saying it would ruin economic development and increase costs to taxpayers and consumers.

“This isn’t just bad for Lawrence, it’s bad for Kansas,” said Lew Ebert, president and chief executive officer of the Kansas Chamber of Commerce and Industry.

Ebert delivered the Kansas chamber’s first “No-Biz” award to the living-wage effort.

Shirley Martin-Smith, Lawrence, board chairman of the Kansas chamber and owner of Martin-Smith Personnel Services, said business owners cited the proposed ordinance as their No. 1 concern.

“It’s just not a good thing to mandate to businesses,” said Martin-Smith, a former Lawrence mayor.

Supporters of the living-wage ordinance said the chamber was off base.

Research in areas that have living-wage ordinances shows that they have actually helped spur economic development, said Stephanie Harsin of the Kaw Valley Living Wage Alliance.

“There are over 100 cities and counties across the nation that have passed these kinds of laws. I can’t believe the number would continue to grow if they had such a negative impact,” Harsin said.

Under the proposal, companies with 10 or more employees that receive tax abatements from the city would have to pay their workers a wage that would keep a family of three at least 30 percent above the poverty level, or $9.53 per hour. The Lawrence City Commission is expected to consider the measure later this year.

¢ Chamber hires KU to study living wage (5-31-03)¢ Letter: Living wage (2-22-03)¢ Living wage ordinance divides city candidates (2-17-03)¢ Living wage, floodplain concern area businesses (1-16-03)

The Kansas chamber said the proposal was being pushed by organized labor to pay for a welfare mentality in the workplace.

But Harsin said the living-wage proposal had the support of churches, community organizations and some small businesses.

The Lawrence Chamber of Commerce earlier this year commissioned Kansas University’s Policy Research Institute to look at approximately five college communities that have a living wage and gather economic statistics from the communities to try to determine what, if any, effect the living wage had on the economy. The state chamber commended the city for beginning the study, which is expected to be complete by late fall.